The Impending Crisis

CHAPTER II.. Statistics of Wealth Owners.

STATISTICS OF WEALTH OWNERS.

Statistics of aggregate wealth 27

Economic classes of families analysed 28

Holders of wealth, tenants and mortgagors 32

Reciprocal comparison of contradictory classes 39

Comparison of the poor and the rich families 42

Right table resulting from comparisons 45

Comparison of families in tables of different authorities: 47 averages of family wealth

Illustrative chart showing worth of individuals 50

CHAPTER III.. The Propertied and Propertyless People.

THE PROPERTIED AND PROPERTYLESS PEOPLE.

Fundamental difference in number of resources of the propertied 53 and propertyless

Sources of multiple incomes of the wealth owners 54

(Extent of mechanical forces applied to labor in favor of the 57 wealthy)

A propertyless man himself is a source of multiple expenses in 61 favor of the propertied

Primogeniture replaced by dividogenesure, the principle of 70 dividogenesure defined and explained

CHAPTER IV.. Abnormity of the Social Situation.

ABNORMITY OF THE SOCIAL SITUATION.

Numbers of the people subject to dividogenesure 78

(Percentage of the homeless population in cities and towns and 79 of the landless on farms)

The propertyless a great nation 83

Bread-winners and others in gainful pursuits 89

Productivity of the American people superior 93

The people labor in favor of speculators 95

(Artificial world a witness for justice and rights) 98

Yearly net gains of the natural monopolies 101

Rates of injustice of dividogenesure expressed in daily incomes 103 derived from millions of dependent individuals by the wealthy few

CHAPTER V.. The Mortgagor Families.

THE MORTGAGOR FAMILIES.

Loss of rights precedes loss of property 110

Statistics of farm and home families in debt 111

Percentages and numbers of families in debt in the United States 116 after 1890: double table

Increase of mortgages on acre-tracts and lots 119

Amounts of indebtedness and life of mortgage 121

Per capita debt and average rate percent on the debt 122

Annual interest charges on debts combined 126

Public and other debts in force after 1890 stated 126

Significance of mortgages: different views 128

Loss of property by foreclosure of mortgages 135

CHAPTER VI.. Concentration of Wealth in Monopolies, Etc.

CONCENTRATION OF WEALTH IN MONOPOLIES, ETC.

Increase of the national wealth in seven years 139

Wages: the doctrine of; artificially kept up; the fall of 141

Net incomes of the natural and mortgagee monopolies from 1891 to 145 1897 inclusive

Net incomes of monopolizers of rentable houses for the same 146 period

Net incomes of monopolies of rentable farm lands for the same 148 period

Net incomes of some trusts unascertained 151

Net incomes of the owners of offices, hotels and other rentable 152 properties in the centers of cities

Development of trusts in manufacture and mechanical industries; 154 concentration of capital

Net incomes of manufacture and mechanical trades 157

Net incomes of mining monopolies 161

Increase of the propertyless population 164

Grand total of the total-net-incomes of monopolies, trusts, and 169 combinations in seven years

Excess of the net incomes over the total increase of the 170 national wealth in seven years explained

National and local taxes for seven years paid 174

Increase of the propertyless and that of national wealth after 180 1897 up to 1900 stated

Appendix 187

Index 191

CHAPTER I.

DISTRIBUTION OF WEALTH IN THE UNITED STATES.

When a heavy mass of clouds suddenly rises in a clear sky, every one thinks that a terrific storm is to follow, displaying a great store of pent up forces. And many people [SN: SIGNS OF THE TIMES.] never make a single mistake in predicting from so ominous a summer sky what is going to take place. Some similar forecasting is now going on within the consciousness of the people. For nearly every one more or less clearly feels that he is heavily pressed upon by some portent in the national life. And every one whose mental horizon is clear enough and wide enough sees, beyond the outward appearance, that something dangerous is stored in the nation. It may be something so unusually great in its force, something so explosive, something so combustible, that with the new century it may terribly shake the world.

It was quite recently when the “North American” of Philadelphia asked the question, “What has the Nineteenth Century in store for Philadelphia?” And by its own admission the replies received were amazing. In summing them up, before spreading them at large before its readers, it said:

“Substantial business men, whose names are almost household words, solemnly affirm that with opinions of the new century will come revolution and bloodshed. Leading lawyers [SN: OPINIONS OF BUSINESS MEN.] say the tendency will be toward socialism. Bankers join with labor leaders in forecasting the triumph of the single-tax theory and the consequent overthrow of existing social conditions. That such a tremendous undercurrent of dissatisfaction and unrest exists in this city will undoubtedly come as a shock to thousands of conservative citizens. The opinions given are not those of labor agitators or anarchists. They are the careful expressions of men of wealth and of broad education. The revolutionary suggestions were not shouted upon the street in time of riot and excitement, but were given deliberately while the speakers sat in their well furnished offices, surrounded by comforts and evidences of prosperity.” So then the Nineteenth Century has stored up in the social organism of the nation enough material to produce revolution and bloodshed in the Twentieth Century.

And Mr. Louis Post says in “The Public” of Chicago: “Our leisurely friends of Philadelphia, who are to be envied, by the way, and not sneered at, for being philosophical enough and sensible enough to keep so much unwholesome hustle out of their lives—these slow and sober people must have been ‘startled’ by the above ‘revelations’ of the Philadelphia North American, that ancient landmark, now in its 128th year. It was undoubtedly an amazing surprise in view of its age that the answer of its readers was, as you see, ‘revolution and bloodshed.’

If similar questions were presented to the thinking public of the various cities of the United States, we might have thousands of like opinions and all of them would be conditioned by sufficient reasons.

One of the most prominent thinkers of the city of Chicago also quite recently said that “the Twentieth Century will bring to us the bloodiest revolution that human [SN: OPINIONS OF LEARNED MEN.] history ever witnessed.” And his assertion was not less amazing than was the affirmation of the substantial business men of Philadelphia. If it were honest and right to expose the names of men whose confidential conversations led to the same or similar assertions, I alone could make a long list of these names.

They all admit that the nation, as an organism, has long been diseased; its nerves have long been abnormally strained. But, like the friends of Philadelphia, they speak about revolution and bloodshed which is but the last and most convulsive stage of any nation’s serious disease. And it is true that, when this stage is reached, it is impossible to avoid the most intolerable operation.

But the amazing feature of such opinions is that different men agree in affirming that revolution and bloodshed is almost unavoidable; yet different men, as I know, [SN: CAUSES OF UNREST.] assign different causes for such an undesirable event. Some say it must come because the population increases and the unemployed laborers increase. Others say that the trusts, combinations, and monopolies must ruin the nation. Still others say that progress and poverty, being very rapid in their diverse directions, must rapidly bring the wealthy and the poor into the state of cut-throats against each other. And only very few men understand that all these causes are but secondary, though working to the same horrible end. While the real, effective cause for revolution and bloodshed, with the nation, is the exceedingly unequal distribution of wealth, and its rapid concentration in a very few hands.

It is this situation that our democratic people will not be able to endure, because they are born [SN: PEOPLE THINK THEY ARE BORN FREE.] free, whereas the storing up of wealth in a few hands makes them all economic slaves; deprives them of the privileges they enjoyed; makes them absolutely dependent upon the mercies of the rich, which, if shown to them, they may live; if withheld from them, they must starve to death.

Let us see, then, what it is that the Nineteenth Century has stored up, which is to result in such a terrific convulsion in the Twentieth Century.

The following diagrams present the Logical Premises from which the “revolution and bloodshed,” as a conclusion, must inevitably follow, provided their action is not checked.

Distribution of Wealth in the United States.

Population: 62,622,250. Wealth: $65,037,091,197.

Millionaires .03 } Millionaires 20 } Rich 8.97 } .09 Rich 51 } .71

Middle 28 } Middle 20 } Lower 11 } .91 Lower 04 } .29 Poor 52 } Poor 05 }

“These diagrams showing by percentages the population and wealth distribution in the United States, according to tables compiled by George K. Holmes, U. S. Census Expert on Mortgage Statistics, are from the Encyclopedia of Social Reform.”

The contents of the above diagrams show on the bases of statistics that in 1890 three hundredths of one per cent of the population, [SN: PERCENTAGES OF WEALTH AND PEOPLE.] which are the millionaires, held 20 per cent of the nation’s wealth. Eight per cent and ninety-seven hundredths of one per cent of the population, which are the rich, held 51 per cent of the wealth. The middle class, consisting of 28 per cent of the population, held 20 per cent of the wealth. The lower class, consisting of 11 per cent of the population, held 4 per cent of the wealth. And the poor class, consisting of 52 per cent of the population, held but 5 per cent of the national wealth, as this table shows:

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