Part 2

A study of Mr. Ford's mental processes and acts illustrates the true mind of America. In the autumn of 1916 Mr. Wilson declared that "the people of the United States want to be sure what they are fighting about, and they want to be sure that they are fighting for the things that will bring the world justice and peace. Define the elements; let us know that we are not fighting for the prevalence of this nation over that, for the ambitions of this group of nations as compared with the ambitions of that group of nations, let us once be convinced that we are called in to a great combination for the rights of mankind, and America will unite her force and spill her blood for the great things she has always believed in and followed."

"America is always ready to fight for the things which are American." Even in these sombre days that mark the anniversary of our entrance into the war. But let it be remembered that it was in the darkest days of the Civil War Abraham Lincoln boldly proclaimed the democratic, idealistic issue of that struggle. The Russian Revolution, which we must seek to understand and not condemn, the Allied defeats that are its consequences, can only make our purpose the firmer to put forth all our strength for the building up of a better world. The President's masterly series of state papers, distributed in all parts of the globe, have indeed been so many Proclamations of Emancipation for the world's oppressed. Not only powerful nations shall cease to exploit little nations, but powerful individuals shall cease to exploit their fellow men. Henceforth no wars for dominion shall be waged, and to this end secret treaties shall be abolished. Peoples through their representatives shall make their own treaties. And just as democracy insures to the individual the greatest amount of self-determination, nations also shall have self-determination, in order that each shall be free to make its world contribution. All citizens have duties to perform toward their fellow citizens; all democratic nations must be interdependent.

With this purpose America has entered the war. But it implies that our own household must be swept and cleaned. The injustices and inequalities existing in our own country, the false standards of worth, the materialism, the luxury and waste must be purged from our midst.

III.

In fighting Germany we are indeed fighting an evil Will--evil because it seeks to crush the growth of individual and national freedom. Its object is to put the world back under the thrall of self-constituted authority. So long as this Will can compel the bodies of soldiers to do its bidding, these bodies must be destroyed. Until the Will behind them is broken, the world cannot be free. Junkerism is the final expression of reaction, organized to the highest efficiency. The war against the Junkers marks the consummation of a long struggle for human liberty in all lands, symbolizes the real cleavage dividing the world. As in the French Revolution and the wars that followed it, the true significance of this war is social. But today the Russian Revolution sounds the keynote. Revolutions tend to express the extremes of the philosophies of their times--human desires, discontents, and passions that cannot be organized. The French Revolution was a struggle for political freedom; the underlying issue of the present war is economic freedom--without which political freedom is of no account. It will not, therefore, suffice merely to crush the Junkers, and with them militarism and autocracy. Unless, as the fruit of this appalling bloodshed and suffering, the democracies achieve economic freedom, the war will have been fought in vain. More revolutions, wastage and bloodshed will follow, the world will be reduced to absolute chaos unless, in the more advanced democracies, an intelligent social order tending to remove the causes of injustice and discontent can be devised and ready for inauguration. This new social order depends, in turn, upon a world order of mutually helpful, free peoples, a league of Nations.--If the world is to be made safe for democracy, this democratic plan must be ready for the day when the German Junker is beaten and peace is declared.

The real issue of our time is industrial democracy we must face that fact. And those in America and the Entente nations who continue to oppose it will do so at their peril. Fortunately, as will be shown, that element of our population which may be designated as domestic Junkers is capable of being influenced by contemporary currents of thought, is awakening to the realization of social conditions deplorable and dangerous. Prosperity and power had made them blind and arrogant. Their enthusiasm for the war was, however, genuine; the sacrifices they are making are changing and softening them; but as yet they can scarcely be expected, as a class, to rejoice over the revelation--just beginning to dawn upon their minds--that victory for the Allies spells the end of privilege. Their conception of democracy remains archaic, while wealth is inherently conservative. Those who possess it in America have as a rule received an education in terms of an obsolete economics, of the thought of an age gone by. It is only within the past few years that our colleges and universities have begun to teach modern economics, social science and psychology--and this in the face of opposition from trustees. Successful business men, as a rule, have had neither the time nor the inclination to read books which they regard as visionary, as subversive to an order by which they have profited. And that some Americans are fools, and have been dazzled in Europe by the glamour of a privilege not attainable at home, is a deplorable yet indubitable fact. These have little sympathy with democracy; they have even been heard to declare that we have no right to dictate to another nation, even an enemy nation, what form of government it shall assume. We have no right to demand, when peace comes, that the negotiations must be with the representatives of the German people. These are they who deplore the absence among us of a tradition of monarchy, since the American people "should have something to look up to." But this state of mind, which needs no comment, is comparatively rare, and represents an extreme. We are not lacking, however, in the type of conservative who, innocent of a knowledge of psychology, insists that "human nature cannot be changed," and that the "survival of the fittest" is the law of life, yet these would deny Darwin if he were a contemporary. They reject the idea that society can be organized by intelligence, and war ended by eliminating its causes from the social order. On the contrary they cling to the orthodox contention that war is a necessary and salutary thing, and proclaim that the American fibre was growing weak and flabby from luxury and peace, curiously ignoring the fact that their own economic class, the small percentage of our population owning sixty per cent. of the wealth of the country, and which therefore should be most debilitated by luxury, was most eager for war, and since war has been declared has most amply proved its courage and fighting quality. This, however, and other evidences of the patriotic sacrifices of those of our countrymen who possess wealth, prove that they are still Americans, and encourages the hope and belief that as Americans they ultimately will do their share toward a democratic solution of the problem of society. Many of them are capable of vision, and are beginning to see the light today.

In America we succeeded in eliminating hereditary power, in obtaining a large measure of political liberty, only to see the rise of an economic power, and the consequent loss of economic liberty. The industrial development of the United States was of course a necessary and desirable thing, but the economic doctrine which formed the basis of American institutions proved to be unsuited to industrialism, and introduced unforeseen evils that were a serious menace to the Republic. An individualistic economic philosophy worked admirably while there was ample land for the pioneer, equality of opportunity to satisfy the individual initiative of the enterprising. But what is known as industrialism brought in its train fear and favour, privilege and poverty, slums, disease, and municipal vice, fostered a too rapid immigration, established in America a tenant system alien to our traditions. The conditions which existed before the advent of industrialism are admirably pictured, for instance, in the autobiography of Mr. Charles Francis Adams, when he describes his native town of Quincy in the first half of the Nineteenth Century. In those early communities, poverty was negligible, there was no great contrast between rich and poor; the artisan, the farmer, the well-to-do merchant met on terms of mutual self-respect, as man to man; economic class consciousness was non-existent; education was so widespread that European travellers wonderingly commented on the fact that we had no "peasantry"; and with few exceptions every citizen owned a piece of land and a home. Property, a refuge a man may call his own, and on which he may express his individuality, is essential to happiness and self-respect. Today, less than two thirds of our farmers own their land, while vast numbers of our working men and women possess nothing but the labour of their hands. The designation of labour as "property" by our courts only served to tighten the bonds, by obstructing for a time the movement to decrease the tedious and debilitating hours of contact of the human organism with the machine,--a menace to the future of the race, especially in the case of women and children. If labour is "property," wretches driven by economic necessity have indeed only the choice of a change of masters. In addition to the manual workers, an army of clerical workers of both sexes likewise became tenants, and dependents who knew not the satisfaction of a real home.

Such conditions gradually brought about a profound discontent, a grouping of classes. Among the comparatively prosperous there was set up a social competition in luxury that was the bane of large and small communities. Skilled labour banded itself into unions, employers organized to oppose them, and the result was a class conflict never contemplated by the founders of the Republic, repugnant to democracy which by its very nature depends for its existence on the elimination of classes. In addition to this, owing to the unprecedented immigration of ignorant Europeans to supply the labour demand, we acquired a sinister proletariat of unskilled economic slaves. Before the war labour discovered its strength; since the war began, especially in the allied nations with quasi-democratic institutions, it is aware of its power to exert a leverage capable of paralyzing industry for a period sufficient to destroy the chances of victory. The probability of the occurrence of such a calamity depends wholly on whether or not the workman can be convinced that it is his war, for he will not exert himself to perpetuate a social order in which he has lost faith, even though he now obtains a considerable increase in wages. Agreements entered into with the government by union leaders will not hold him if at any time he fails to be satisfied that the present world conflict will not result in a greater social justice. This fact has been demonstrated by what is known as the "shop steward" movement in England, where the workers repudiated the leaders' agreements and everywhere organized local strikes. And in America, the unskilled workers are largely outside of the unions.

The workman has a natural and laudable desire to share more fully in the good things of life. And it is coming to be recognized that material prosperity, up to a certain point, is the foundation of mental and spiritual welfare: clean and comfortable surroundings, beauty, rational amusements, opportunity for a rational satisfaction of the human instincts are essential to contentment and progress. The individual, of course, must be enlightened; and local labour unions, recognizing this, are spending considerable sums all over the country on schools to educate their members. If a workman is a profiteer, he is more to be excused than the business profiteer, against whom his anger is directed; if he is a spendthrift, prodigality is a natural consequence of rapid acquisition. We have been a nation of spendthrifts.

A failure to grasp the psychology of the worker involves disastrous consequences. A discussion as to whether or not his attitude is unpatriotic and selfish is futile. No more profound mistake could be made than to attribute to any element of the population motives wholly base. Human nature is neither all black nor all white, yet is capable of supreme sacrifices when adequately appealed to. What we must get into our minds is the fact that a social order that insured a large measure of democracy in the early days of the Republic is inadequate to meet modern industrial conditions. Higher wages, material prosperity alone will not suffice to satisfy aspirations for a fuller self-realization, once the method by which these aspirations can be gained is glimpsed. For it cannot be too often repeated that the unquenchable conflicts are those waged for ideas and not dollars. These are tinged with religious emotion.

IV.

Mr. Wilson's messages to the American people and to the world have proclaimed a new international order, a League of Democracies. And in a recent letter to New Jersey Democrats we find him warning his party, or more properly the nation, of the domestic social changes necessarily flowing from his international program. While rightly resolved to prosecute the war on the battle lines to the utmost limit of American resources, he points out that the true significance of the conflict lies in "revolutionary change." "Economic and social forces," he says, "are being released upon the world, whose effect no political seer dare to conjecture." And we "must search our hearts through and through and make them ready for the birth of a new day--a day we hope and believe of greater opportunity and greater prosperity for the average mass of struggling men and women." He recognizes that the next great step in the development of democracy which the war must bring about--is the emancipation of labour; to use his own phrase, the redemption of masses of men and women from "economic serfdom." "The old party slogans," he declares, "will mean nothing to the future."

Judging from this announcement, the President seems prepared to condemn boldly all the rotten timbers of the social structure that have outlived their usefulness--a position that hitherto no responsible politician has dared to take. Politicians, on the contrary, have revered the dead wood, have sought to shore the old timbers for their own purposes. But so far as any party is concerned, Mr. Wilson stands alone. Both of the two great parties, the Republican and the Democratic, in order to make a show of keeping abreast of the times, have merely patched their platforms with the new ideas. The Socialist Party in the United States is relatively small, is divided against itself, and has given no evidence of a leadership of broad sanity and vision. It is fortunate we have been spared in this country the formation of a political labour party, because such a party would have been composed of manual workers alone, and hence would have tended further to develop economic class consciousness, to crystallize class antagonisms. Today, however, neither the Republican nor the Democratic party represents the great issue of the times; the cleavage between them is wholly artificial. The formation of a Liberal Party, with a platform avowedly based on modern social science, has become essential. Such a party, to be in harmony with our traditions and our creed, to arrest in our democracy the process of class stratification which threatens to destroy it, must not draw its members from the ranks of manual labour alone, but from all elements of our population. It should contain all the liberal professions, and clerks and shopkeepers, as well as manual workers; administrators, and even those employers who have become convinced that our present economic system does not suffice to meet the needs of the day. In short, membership in such a party, as far as possible, should not be based upon occupation or economic status, but on an honest difference of view from that of the conservative opposition. This would be a distinctly American solution. In order to form such a party a campaign of education will be necessary. For today Mr. Wilson's strength is derived from the independent vote representing the faith of the people as a whole; but the majority of those who support the President, while they ardently desire the abolition in the world of absolute monarchy, of militarism and commercial imperialism, while they are anxious that this war shall expedite and not retard the social reforms in which they are interested, have as yet but a vague conception of the social order which these reforms imply.

It marks a signal advance in democracy when liberal opinion in any nation turns for guidance and support to a statesman of another nation. No clearer sign of the times could be desired than the fact that our American President has suddenly become the liberal leader of the world. The traveller in France, and especially in Britain, meets on all sides striking evidence of this. In these countries, until America's entrance into the war, liberals had grown more and more dissatisfied with the failure of their governments to define in democratic terms the issue of the conflict, had resented the secret inter-allied compacts, savouring of imperialism and containing the germs of future war. They are now looking across the Atlantic for leadership. In France M. Albert Thomas declared that Woodrow Wilson had given voice to the aspirations of his party, while a prominent Liberal in England announced in a speech that it had remained for the American President to express the will and purpose of the British people. The new British Labour Party and the Inter-Allied Labour and Socialist Conferences have adopted Mr. Wilson's program and have made use of his striking phrases. But we have between America and Britain this difference: in America the President stands virtually alone, without a party behind him representing his views; in Britain the general democratic will of the nation is now being organized, but has obtained as yet no spokesman in the government.

Extraordinary symptomatic phenomena have occurred in Russia as well as in Britain. In Russia the rebellion of an awakening people against an age-long tyranny has almost at once leaped to the issue of the day, taken on the complexion of a struggle for industrial democracy. Whether the Germans shall be able to exploit the country, bring about a reaction and restore for a time monarchical institutions depends largely upon the fortunes of the war. In Russia there is revolution, with concomitant chaos; but in Britain there is evolution, an orderly attempt of a people long accustomed to progress in self-government to establish a new social order, peacefully and scientifically, and in accordance with a traditional political procedure.

The recent development of the British Labour Party, although of deep significance to Americans, has taken place almost without comment in this country. It was formally established in 1900, and was then composed of manual workers alone. In 1906, out of 50 candidates at the polls, 39 were elected to Parliament; in 1910, 42 were elected. The Parliamentary Labour Party, so called, has now been amalgamated with four and a half millions of Trade Unionists, and with the three and a half millions of members of the Co-operative Wholesale Society and the Co-operative Union. Allowing for duplication of membership, these three organizations--according to Mr. Sidney Webb--probably include two fifths of the population of the United Kingdom. "So great an aggregation of working class organizations," he says, "has never come shoulder to shoulder in any country." Other smaller societies and organizations are likewise embraced, including the Socialists. And now that the suffrage has been extended, provision is made for the inclusion of women. The new party is organizing in from three to four hundred constituencies, and at the next general election is not unlikely to gain control of the political balance of power.

With the majority of Americans, however, the word "labour" as designating a party arouses suspicion and distrust. By nature and tradition we are inclined to deplore and oppose any tendency toward the stratification of class antagonisms--the result of industrial discontent--into political groups. The British tradition is likewise hostile to such a tendency. But in Britain the industrial ferment has gone much further than with us, and such a result was inevitable. By taking advantage of the British experience, of the closer ties now being knit between the two democracies, we may in America be spared a stage which in Britain was necessary. Indeed, the program of the new British Labour Party seems to point to a distinctly American solution, one in harmony with the steady growth of Anglo-Saxon democracy. For it is now announced that the word "labour," as applied to the new party, does not mean manual labour alone, but also mental labour. The British unions have gradually developed and placed in power leaders educated in social science, who have now come into touch with the intellectual leaders of the United Kingdom, with the sociologists, economists, and social scientists. The surprising and encouraging result of such association is the announcement that the new Labour Party is today publicly thrown open to all workers, both by hand and by brain, with the object of securing for these the full fruits of their industry. This means the inclusion of physicians, professors, writers, architects, engineers, and inventors, of lawyers who no longer regard their profession as a bulwark of the status quo; of clerks, of administrators of the type evolved by the war, who indeed have gained their skill under the old order but who now in a social spirit are dedicating their gifts to the common weal, organizing and directing vast enterprises for their governments. In short, all useful citizens who make worthy contributions--as distinguished from parasites, profiteers, and drones, are invited to be members; there is no class distinction here. The fortunes of such a party are, of course, dependent upon the military success of the allied armies and navies. But it has defined the kind of democracy the Allies are fighting for, and thus has brought about an unqualified endorsement of the war by those elements of the population which hitherto have felt the issue to be imperialistic and vague rather than democratic and clear cut. President Wilson's international program is approved of and elaborated.

The Report on Reconstruction of the new British Labour Party is perhaps the most important political document presented to the world since the Declaration of Independence. And like the Declaration, it is written in the pure English that alone gives the high emotional quality of sincerity. The phrases in which it tersely describes its objects are admirable. "What is to be reconstructed after the war is over is not this or that government department, this or that piece of social machinery, but Society itself." There is to be a systematic approach towards a "healthy equality of material circumstance for every person born into the world, and not an enforced dominion over subject nations, subject colonies, subject classes, or a subject sex." In industry as well as in government the social order is to be based "on that equal freedom, that general consciousness of consent, and that widest participation in power, both economic and political, which is characteristic of democracy." But all this, it should be noted, is not to be achieved in a year or two of "feverish reconstruction"; "each brick that the Labour Party helps to lay shall go to erect the structure it intends and no other."

In considering the main features of this program, one must have in mind whether these are a logical projection and continuation of the Anglo-Saxon democratic tradition, or whether they constitute an absolute break with that tradition. The only valid reason for the adoption of such a program in America would be, of course, the restoration of some such equality of opportunity and economic freedom as existed in our Republic before we became an industrial nation. "The first condition of democracy,"--to quote again from the program, "is effective personal freedom."

What is called the "Universal Enforcement of the National Minimum" contemplates the extension of laws already on the statute books in order to prevent the extreme degradation of the standard of life brought about by the old economic system under industrialism. A living minimum wage is to be established. The British Labour Party intends "to secure to every member of the community, in good times and bad alike... all the requisites of healthy life and worthy citizenship."

After the war there is to be no cheap labour market, nor are the millions of workers and soldiers to fall into the clutches of charity; but it shall be a national obligation to provide each of these with work according to his capacity. In order to maintain the demand for labour at a uniform level, the government is to provide public works. The population is to be rehoused in suitable dwellings, both in rural districts and town slums; new and more adequate schools and training colleges are to be inaugurated; land is to be reclaimed and afforested, and gradually brought under common ownership; railways and canals are to be reorganized and nationalized, mines and electric power systems. One of the significant proposals under this head is that which demands the retention of the centralization of the purchase of raw materials brought about by the war.

In order to accomplish these objects there must be a "Revolution in National Finance." The present method of raising funds is denounced; and it is pointed out that only one quarter of the colossal expenditure made necessary by the war has been raised by taxation, and that the three quarters borrowed at onerous rates is sure to be a burden on the nation's future. The capital needed, when peace comes, to ensure a happy and contented democracy must be procured without encroaching on the minimum standard of life, and without hampering production. Indirect taxation must therefore be concentrated on those luxuries of which it is desirable that the consumption be discouraged. The steadily rising unearned increment of urban and mineral land ought, by appropriate direct taxation, to be brought into the public exchequer; "the definite teachings of economic science are no longer to be disregarded." Hence incomes are to be taxed above the necessary cost of family maintenance, private fortunes during life and at death; while a special capital levy must be made to pay off a substantial portion of the national debt.

"The Democratic Control of Industry" contemplates the progressive elimination of the private capitalist and the setting free of all who work by hand and brain for the welfare of all.

The Surplus Wealth is to be expended for the Common Good. That which Carlyle designates as the "inward spiritual," in contrast to the "outward economical," is also to be provided for. "Society," says the document, "like the individual, does not live by bread alone, does not exist only for perpetual wealth production." First of all, there is to be education according to the highest modern standard; and along with education, the protection and advancement of the public health, 'mens sana in corpore sano'. While large sums must be set aside, not only for original research in every branch of knowledge, but for the promotion of music, literature, and fine art, upon which "any real development of civilization fundamentally depends."

In regard to the British Empire, the Labour Party urges self-government for any people, whatever its colour, proving itself capable, and the right of that people to the proceeds of its own toil upon the resources of its territory. An unequivocal stand is taken for the establishment, as a part of the treaty of peace, of a Universal Society of Nations; and recognizing that the future progress of democracy depends upon co-operation and fellowship between liberals of all countries, the maintenance of intimate relationships is advocated with liberals oversea.

Finally, a scientific investigation of each succeeding problem in government is insisted upon, and a much more rapid dissemination among the people of the science that exists. "A plutocratic party may choose to ignore science, but no labour party can hope to maintain its position unless its proposals are, in fact, the outcome of the best political science of its time."

There are, it will be seen, some elements in the program of the new British Labour Party apparently at variance with American and English institutions, traditions, and ideas. We are left in doubt, for instance, in regard to its attitude toward private property. The instinct for property is probably innate in humanity, and American conservatism in this regard is, according to certain modern economists, undoubtedly sound. A man should be permitted to acquire at least as much property as is required for the expression of his personality; such a wise limitation, also, would abolish the evil known as absentee ownership. Again, there will arise in many minds the question whether the funds for the plan of National finance outlined in the program may be obtained without seriously deranging the economic system of the nation and of the world. The older school denounces the program as Utopian. On the other hand, economists of the modern school who have been consulted have declared it practical. It is certain that before the war began it would not have been thought possible to raise the billions which in four years have been expended on sheer destruction; and one of our saddest reflections today must be of regret that a small portion of these billions which have gone to waste could not have been expended for the very purposes outlined--education, public health, the advancement of science and art, public buildings, roads and parks, and the proper housing of populations! It is also dawning upon us, as a result of new practices brought about by the war, that our organization of industry was happy-go-lucky, inefficient and wasteful, and that a more scientific and economical organization is imperative. Under such a new system it may well be, as modern economists claim, that, we shall have an ample surplus for the Common Good.

The chief objection to a National or Democratic Control of Industry has been that it would tend to create vast political machines and thus give the politicians in office a nefarious power. It is not intended here to attempt a refutation of this contention. The remedy lies in a changed attitude of the employee and the citizen toward government, and the fact that such an attitude is now developing is not subject to absolute proof. It may be said, however, that no greater menace to democracy could have arisen than the one we seem barely to have escaped--the control of politics and government by the capitalistic interests of the nation. What seems very clear is that an evolutionary drift toward the national control of industry has for many years been going on, and that the war has tremendously speeded up the tendency. Government has stepped in to protect the consumer of necessities from the profiteer, and is beginning to set a limit upon profits; has regulated exports and imports; established a national shipping corporation and merchant marine, and entered into other industries; it has taken over the railroads at least for the duration of the war, and may take over coal mines, and metal resources, as well as the forests and water power; it now contemplates the regulation of wages.