serious motive of utility is separated from it. Labor, real labor, that which produces wealth and gives knowledge, has too much need of regularity and perseverance and sacrifice to be long the friend of passion, fugitive in its nature, inconstant, and disorderly; it is something too elevated, too ideal, too philosophical, to become exclusively pleasure and enjoyment,--that is, mysticism and sentiment. The faculty of laboring, which distinguishes man from the brutes, has its source in the profoundest depths of the reason: how could it become in us a simple manifestation of life, a voluptuous act of our feeling?
But if now they fall back upon the hypothesis of a transformation of our nature, unprecedented in history, and of which there has been nothing so far that could have expressed the idea, it is nothing more than a dream, unintelligible even to those who defend it, an inversion of progress, a contradiction given to the most certain laws of economic science; and my only reply is to exclude it from the discussion.
Let us stay in the realm of facts, since facts alone have a meaning and can aid us. The French Revolution was effected for industrial liberty as well as for political liberty: and although France in 1789 had not seen all the consequences of the principle for the realization of which she asked,--let us say it boldly,--she was mistaken neither in her wishes nor in her expectation. Whoever would try to deny it would lose in my eyes the right to criticism: I will never dispute with an adversary who would posit as a principle the spontaneous error of twenty-five millions of men.
At the end of the eighteenth century France, wearied with privileges, desired at any price to shake off the torpor of her corporations, and restore the dignity of the laborer by conferring liberty upon him. Everywhere it was necessary to emancipate labor, stimulate genius, and render the manufacturer responsible by arousing a thousand competitors and loading upon him alone the consequences of his indolence, ignorance, and insincerity. Before '89 France was ripe for the transition; it was Turgot who had the glory of effecting the first passage.
Why then, if competition had not been a principle of social economy, a decree of destiny, a necessity of the human soul, why, instead of ABOLISHING corporations, masterships, and wardenships, did they not think rather of REPAIRING them all? Why, instead of a revolution, did they not content themselves with a reform? Why this negation, if a modification was sufficient? Especially as this middle party was entirely in the line of conservative ideas, which the bourgeoisie shared. Let communism, let quasi-socialistic democracy, which, in regard to the principle of competition, represent--though they do not suspect it--the system of the golden mean, the counter-revolutionary idea, explain to me this unanimity of the nation, if they can!
Moreover the event confirmed the theory. Beginning with the Turgot ministry, an increase of activity and well-being manifested itself in the nation. The test seemed so decisive that it obtained the approval of all legislatures. Liberty of industry and commerce figure in our constitutions on a level with political liberty. To this liberty, in short, France owes the growth of her wealth during the last sixty years.
After this capital fact, which establishes so triumphantly the necessity of competition, I ask permission to cite three or four others, which, being less general in their nature, will throw into bolder relief the influence of the principle which I defend.
Why is our agriculture so prodigiously backward? How is it that routine and barbarism still hover, in so many localities, over the most important branch of national labor? Among the numerous causes that could be cited, I see, in the front rank, the absence of competition. The peasants fight over strips of ground; they compete with each other before the notary; in the fields, no. And speak to them of emulation, of the public good, and with what amazement you fill them! Let the king, they say (to them the king is synonymous with the State, with the public good, with society), let the king attend to his business, and we will attend to ours! Such is their philosophy and their patriotism. Ah! if the king could excite competition with them! Unfortunately it is impossible. While in manufactures competition follows from liberty and property, in agriculture liberty and property are a direct obstacle to competition. The peasant, rewarded, not according to his labor and intelligence, but according to the quality of the land and the caprice of God, aims, in cultivating, to pay the lowest possible wages and to make the least possible advance outlays. Sure of always finding a market for his goods, he is much more solicitous about reducing his expenses than about improving the soil and the quality of its products. He sows, and Providence does the rest. The only sort of competition known to the agricultural class is that of rents; and it cannot be denied that in France, and for instance in Beauce, it has led to useful results. But as the principle of this competition takes effect only at second hand, so to speak, as it does not emanate directly from the liberty and property of the cultivators, it disappears with the cause that produces it, so that, to insure the decline of agricultural industry in many localities, or at least to arrest its progress, perhaps it would suffice to make the farmers proprietors.
Another branch of collective labor, which of late years has given rise to sharp debates, is that of public works. "To manage the building of a road, M. Dunoyer very well says, "perhaps a pioneer and a postilion would be better than an engineer fresh from the School of Roads and Bridges." There is no one who has not had occasion to verify the correctness of this remark.
On one of our finest rivers, celebrated by the importance of its navigation, a bridge was being built. From the beginning of the work the rivermen had seen that the arches would be much too low to allow the circulation of boats at times when the river was high: they pointed this out to the engineer in charge of the work. Bridges, answered the latter with superb dignity, are made for those who pass over, not for those who pass under. The remark has become a proverb in that vicinity. But, as it is impossible for stupidity to prevail forever, the government has felt the necessity of revising the work of its agent, and as I write the arches of the bridge are being raised. Does any one believe that, if the merchants interested in the course of the navigable way had been charged with the enterprise at their own risk and peril, they would have had to do their work twice? One could fill a book with masterpieces of the same sort achieved by young men learned in roads and bridges, who, scarcely out of school and given life positions, are no longer stimulated by competition.
In proof of the industrial capacity of the State, and consequently of the possibility of abolishing competition altogether, they cite the administration of the tobacco industry.
There, they say, is no adulteration, no litigation, no bankruptcy, no misery. The condition of the workmen, adequately paid, instructed, sermonized, moralized, and assured of a retiring pension accumulated by their savings, is incomparably superior to that of the immense majority of workmen engaged in free industry.
All this may be true: for my part, I am ignorant on the subject. I know nothing of what goes on in the administration of the tobacco factories; I have procured no information either from the directors or the workmen, and I have no need of any. How much does the tobacco sold by the administration cost? How much is it worth? You can answer the first of these questions: you only need to call at the first tobacco shop you see. But you can tell me nothing about the second, because you have no standard of comparison and are forbidden to verify by experiment the items of cost of administration, which it is consequently impossible to accept. Therefore the tobacco business, made into a monopoly, necessarily costs society more than it brings in; it is an industry which, instead of subsisting by its own product, lives by subsidies, and which consequently, far from furnishing us a model, is one of the first abuses which reform should strike down.
And when I speak of the reform to be introduced in the production of tobacco, I do not refer simply to the enormous tax which triples or quadruples the value of this product; neither do I refer to the hierarchical organization of its employees, some of whom by their salaries are made aristocrats as expensive as they are useless, while others, hopeless receivers of petty wages, are kept forever in the situation of subalterns. I do not even speak of the privilege of the tobacco shops and the whole world of parasites which they support: I have particularly in view the useful labor, the labor of the workmen. From the very fact that the administration's workman has no competitors and is interested neither in profit nor loss, from the fact that he is not free, in a word, his product is necessarily less, and his service too expensive. This being so, let them say that the government treats its employees well and looks out for their comfort: what wonder? Why do not people see that liberty bears the burdens of privilege, and that, if, by some impossibility, all industries were to be treated like the tobacco industry, the source of subsidies failing, the nation could no longer balance its receipts and its expenses, and the State would become a bankrupt?
Foreign products: I cite the testimony of an educated man, though not a political economist,--M. Liebig.
Formerly France imported from Spain every year soda to the value of twenty or thirty millions of francs; for Spanish soda was the best. All through the war with England the price of soda, and consequently that of soap and glass, constantly rose. French manufacturers therefore had to suffer considerably from this state of things. Then it was that Leblanc discovered the method of extracting soda from common salt. This process was a source of wealth to France; the manufacture of soda acquired extraordinary proportions; but neither Leblanc nor Napoleon enjoyed the profit of the invention. The Restoration, which took advantage of the wrath of the people against the author of the continental blockade, refused to pay the debt of the emperor, whose promises had led to Leblanc's discoveries...
A few years ago, the king of Naples having undertaken to convert the Sicilian sulphur trade into a monopoly, England, which consumes an immense quantity of this sulphur, warned the king of Naples that, if the monopoly were maintained, it would be considered a casus belli. While the two governments were exchanging diplomatic notes, fifteen patents were taken out in England for the extraction of sulphuric acid from the limestones, iron pyrites, and other mineral substances in which England abounds. But the affair being arranged with the king of Naples, nothing came of these exploitations: it was simply established, by the attempts which were made, that the extraction of sulphuric acid by the new processes could have been carried on successfully, which perhaps would have annihilated Sicily's sulphur trade.
Had it not been for the war with England, had not the king of Naples had a fancy for monopoly, it would have been a long time before any one in France would have thought of extracting soda from sea salt, or any one in England of getting sulphuric acid from the mountains of lime and pyrites which she contains. Now, that is precisely the effect of competition upon industry. Man rouses from his idleness only when want fills him with anxiety; and the surest way to extinguish his genius is to deliver him from all solicitude and take away from him the hope of profit and of the social distinction which results from it, by creating around him PEACE EVERYWHERE, PEACE ALWAYS, and transferring to the State the responsibility of his inertia.
Yes, it must be admitted, in spite of modern quietism,--man's life is a permanent war, war with want, war with nature, war with his fellows, and consequently war with himself. The theory of a peaceful equality, founded on fraternity and sacrifice, is only a counterfeit of the Catholic doctrine of renunciation of the goods and pleasures of this world, the principle of beggary, the panegyric of misery. Man may love his fellow well enough to die for him; he does not love him well enough to work for him.
To the theory of sacrifice, which we have just refuted in fact and in right, the adversaries of competition add another, which is just the opposite of the first: for it is a law of the mind that, when it does not know the truth, which is its point of equilibrium, it oscillates between two contradictions. This new theory of anti-competitive socialism is that of encouragements.
What more social, more progressive in appearance, than encouragement of labor and of industry? There is no democrat who does not consider it one of the finest attributes of power, no utopian theorist who does not place it in the front rank as a means of organizing happiness. Now, government is by nature so incapable of directing labor that every reward bestowed by it is a veritable larceny from the common treasury. M. Reybaud shall furnish us the text of this induction.
"The premiums granted to encourage exportation," observes M. Reybaud somewhere, "are equivalent to the taxes paid for the importation of raw material; the advantage remains absolutely null, and serves to encourage nothing but a vast system of smuggling."
This result is inevitable. Abolish customs duties, and national industry suffers, as we have already seen in the case of sesame; maintain the duties without granting premiums for exportation, and national commerce will be beaten in foreign markets. To obviate this difficulty do you resort to premiums? You but restore with one hand what you have received with the other, and you provoke fraud, the last result, the caput mortuum, of all encouragements of industry. Hence it follows that every encouragement to labor, every reward bestowed upon industry, beyond the natural price of its product, is a gratuitous gift, a bribe taken out of the consumer and offered in his name to a favorite of power, in exchange for zero, for nothing. To encourage industry, then, is synonymous at bottom with encouraging idleness: it is one of the forms of swindling.
In the interest of our navy the government had thought it best to grant to outfitters of transport-ships a premium for every man employed on their vessels. Now, I continue to quote M. Reybaud: On every vessel that starts for Newfoundland from sixty to seventy men embark. Of this number twelve are sailors: the balance consists of villagers snatched from their work in the fields, who, engaged as day laborers for the preparation of fish, remain strangers to the rigging, and have nothing that is marine about them except their feet and stomach. Nevertheless, these men figure on the rolls of the naval inscription, and there perpetuate a deception. When there is occasion to defend the institution of premiums, these are cited in its favor; they swell the numbers and contribute to success.
Base jugglery! doubtless some innocent reformer will exclaim. Be it so: but let us analyze the fact, and try to disengage the general idea to be found therein.
In principle the only encouragement to labor that science can admit is profit. For, if labor cannot find its reward in its own product, very far from encouraging it, it should be abandoned as soon as possible, and, if this same labor results in a net product, it is absurd to add to this net product a gratuitous gift, and thus overrate the value of the service. Applying this principle, I say then: If the merchant service calls only for ten thousand sailors, it should not be asked to support fifteen thousand; the shortest course for the government is to put five thousand conscripts on State vessels, and send them on their expeditions, like princes. Every encouragement offered to the merchant marine is a direct invitation to fraud,--what do I say?--a proposal to pay wages for an impossible service. Do the handling and discipline of vessels and all the conditions of maritime commerce accommodate themselves to these adjuncts of a useless personnel? What, then, can the ship-owner do in face of a government which offers him a bonus to embark on his vessel people of whom he has no need? If the ministry throws the money of the treasury into the street, am I guilty if I pick it up?
Thus--and it is a point worthy of notice--the theory of encouragements emanates directly from the theory of sacrifice; and, in order to avoid holding man responsible, the opponents of competition, by the fatal contradiction of their ideas, are obliged to make him now a god, now a brute. And then they are astonished that society is not moved by their appeal! Poor children! men will never be better or worse than you see them now and than they always have been. As soon as their individual welfare solicits them, they desert the general welfare: in which I find them, if not honorable, at least worthy of excuse. It is your fault if you now demand of them more than they owe you and now stimulate their greed with rewards which they do not deserve. Man has nothing more precious than himself, and consequently no other law than his responsibility. The theory of self-sacrifice, like that of rewards, is a theory of rogues, subversive of society and morality; and by the very fact that you look either to sacrifice or to privilege for the maintenance of order, you create a new antagonism in society. Instead of causing the birth of harmony from the free activity of persons, you render the individual and the State strangers to each other; in commanding union, you breathe discord.
To sum up, outside of competition there remains but this alternative,-- encouragement, which is a mystification, or sacrifice, which is hypocrisy.
Therefore competition, analyzed in its principle, is an inspiration of justice; and yet we shall see that competition, in its results, is unjust.
% 2.--Subversive effects of competition, and the destruction of liberty thereby.
The kingdom of heaven suffereth violence, says the Gospel, and the violent take it by force. These words are the allegory of society. In society regulated by labor, dignity, wealth, and glory are objects of competition; they are the reward of the strong, and competition may be defined as the regime of force. The old economists did not at first perceive this contradiction: the moderns have been forced to recognize it.
"To elevate a State from the lowest degree of barbarism to the highest degree of opulence," wrote A. Smith, "but three things are necessary,-- peace, moderate taxes, and a tolerable administration of justice. All the rest is brought about by the NATURAL COURSE OF THINGS."
On which the last translator of Smith, M. Blanqui, lets fall this gloomy comment: We have seen the natural course of things produce disastrous effects, and create anarchy in production, war for markets, and piracy in competition. The division of labor and the perfecting of machinery, which should realize for the great working family of the human race the conquest of a certain amount of leisure to the advantage of its dignity, have produced at many points nothing but degradation and misery...When A. Smith wrote, liberty had not yet come with its embarrassments and its abuses, and the Glasgow professor foresaw only its blessings...Smith would have written like M. de Sismondi, if he had been a witness of the sad condition of Ireland and the manufacturing districts of England in the times in which we live.
Now then, litterateurs, statesmen, daily publicists, believers and half-believers, all you who have taken upon yourselves the mission of indoctrinating men, do you hear these words which one would take for a translation from Jeremiah? Will you tell us at last to what end you pretend to be conducting civilization? What advice do you offer to society, to the country, in alarm?
But to whom do I speak? Ministers, journalists, sextons, and pedants! Do such people trouble themselves about the problems of social economy? Have they ever heard of competition?
A citizen of Lyons, a soul hardened to mercantile war, travelled in Tuscany. He observes that from five to six hundred thousand straw hats are made annually in that country, the aggregate value of which amounts to four or five millions of francs. This industry is almost the sole support of the people of the little State. "How is it," he says to himself, "that so easily conducted a branch of agriculture and manufactures has not been transported into Provence and Languedoc, where the climate is the same as in Tuscany?" But, thereupon observes an economist, if the industry of the peasants of Tuscany is taken from them, how will they contrive to live?
The manufacture of black silks had become for Florence a specialty the secret of which she guarded preciously.
A shrewd Lyons manufacturer, the tourist notices with satisfaction, has come to set up an establishment in Florence, and has finally got possession of the peculiar processes of dyeing and weaving. Probably this DISCOVERY will diminish Florentine exportation.--A Journey in Italy, by M. Fulchiron.
Formerly the breeding of the silk-worm was abandoned to the peasants of Tuscany; whom it aided to live.
Agricultural societies have been formed; they have represented that the silk-worm, in the peasant's sleeping-room, did not get sufficient ventilation or sufficient steadiness of temperature, or as good care as it would have if the laborers who breed them made it their sole business. Consequently rich, intelligent, and generous citizens have built, amid the applause of the public, what are called bigattieres (from bigatti, silk-worm).--M. de Sismondi.
And then, you ask, will these breeders of silk-worms, these manufacturers of silks and hats, lose their work? Precisely: it will even be proved to them that it is for their interest that they should, since they will be able to buy the same products for less than it costs them to manufacture them. Such is competition.
Competition, with its homicidal instinct, takes away the bread of a whole class of laborers, and sees in it only an improvement, a saving; it steals a secret in a cowardly manner, and glories in it as a DISCOVERY; it changes the natural zones of production to the detriment of an entire people, and pretends to have done nothing but utilize the advantages of its climate. Competition overturns all notions of equity and justice; it increases the real cost of production by needlessly multiplying the capital invested, causes by turns the dearness of products and their depreciation, corrupts the public conscience by putting chance in the place of right, and maintains terror and distrust everywhere.
But what! Without this atrocious characteristic, competition would lose its happiest effects; without the arbitrary element in exchange and the panics of the market, labor would not continually build factory against factory, and, not being maintained in such good working order, production would realize none of its marvels. After having caused evil to arise from the very utility of its principle, competition again finds a way to extract good from evil; destruction engenders utility, equilibrium is realized by agitation, and it may be said of competition, as Samson said of the lion which he had slain: De comedente cibus exiit, et de forti dulcedo. Is there anything, in all the spheres of human knowledge, more surprising than political economy?
Let us take care, nevertheless, not to yield to an impulse of irony, which would be on our part only unjust invective. It is characteristic of economic science to find its certainty in its contradictions, and the whole error of the economists consists in not having understood this. Nothing poorer than their criticism, nothing more saddening than their mental confusion, as soon as they touch this question of competition: one would say that they were witnesses forced by torture to confess what their conscience would like to conceal. The reader will take it kindly if I put before his eyes the arguments for laissez-passer, introducing him, so to speak, into the presence of a secret meeting of economists.
M. Dunoyer opens the discussion.
Of all the economists M. Dunoyer has most energetically embraced the positive side of competition, and consequently, as might have been expected, most ineffectually grasped the negative side. M. Dunoyer, with whom nothing can be done when what he calls principles are under discussion, is very far from believing that in matters of political economy yes and no may be true at the same moment and to the same extent; let it be said even to his credit, such a conception is the more repugnant to him because of the frankness and honesty with which he holds his doctrines. What would I not give to gain an entrance into this pure but so obstinate soul for this truth as certain to me as the existence of the sun,--that all the categories of political economy are contradictions! Instead of uselessly exhausting himself in reconciling practice and theory; instead of contenting himself with the ridiculous excuse that everything here below has its advantages and its inconveniences,--M. Dunoyer would seek the synthetic idea which solves all the antinomies, and, instead of the paradoxical conservative which he now is, he would become with us an inexorable and logical revolutionist.
"If competition is a false principle," says M. Dunoyer, "it follows that for two thousand years humanity has been pursuing the wrong road."
No, what you say does not follow, and your prejudicial remark is refuted by the very theory of progress. Humanity posits its principles by turns, and sometimes at long intervals: never does it give them up in substance, although it destroys successively their expressions and formulas. This destruction is called NEGATION; because the general reason, ever progressive, continually denies the completeness and sufficiency of its prior ideas. Thus it is that, competition being one of the periods in the constitution of value, one of the elements of the social synthesis, it is true to say at the same time that it is indestructible in its principle, and that nevertheless in its present form it should be abolished, denied. If, then, there is any one here who is in opposition to history, it is you.
I have several remarks to make upon the accusations of which competition has been the object. The first is that this regime, good or bad, ruinous or fruitful, does not really exist as yet; that it is established nowhere except in a partial and most incomplete manner.
This first observation has no sense. COMPETITION KILLS COMPETITION, as we said at the outset; this aphorism may be taken for a definition. How, then, could competition ever be complete?
Moreover, though it should be admitted that competition does not yet exist in its integrity, that would simply prove that competition does not act with all the power of elimination that there is in it; but that will not change at all its contradictory nature. What need have we to wait thirty centuries longer to find out that, the more competition develops, the more it tends to reduce the number of competitors?
The second is that the picture drawn of it is unfaithful; and that sufficient heed is not paid to the extension which the general welfare has undergone, including even that of the laboring classes.
If some socialists fail to recognize the useful side of competition, you on your side make no mention of its pernicious effects. The testimony of your opponents coming to complete your own, competition is shown in the fullest light, and from a double falsehood we get the truth as a result. As for the gravity of the evil, we shall see directly what to think about that.
The third is that the evil experienced by the laboring classes is not referred to its real causes.
If there are other causes of poverty than competition, does that prevent it from contributing its share? Though only one manufacturer a year were ruined by competition, if it were admitted that this ruin is the necessary effect of the principle, competition, as a principle, would have to be rejected.
The fourth is that the principal means proposed for obviating it would be inexpedient in the extreme.
Possibly: but from this I conclude that the inadequacy of the remedies proposed imposes a new duty upon you,--precisely that of seeking the most expedient means of preventing the evil of competition.
The fifth, finally, is that the real remedies, in so far as it is possible to remedy the evil by legislation, would be found precisely in the regime which is accused of having produced it,--that is, in a more and more real regime of liberty and competition.
Well! I am willing. The remedy for competition, in your opinion, is to make competition universal. But, in order that competition may be universal, it is necessary to procure for all the means of competing; it is necessary to destroy or modify the predominance of capital over labor, to change the relations between employer and workman, to solve, in a word, the antinomy of division and that of machinery; it is necessary to ORGANIZE LABOR: can you give this solution?
M. Dunoyer then develops, with a courage worthy of a better cause, his own utopia of universal competition: it is a labyrinth in which the author stumbles and contradicts himself at every step.
"Competition," says M. Dunoyer, "meets a multitude of obstacles."
In fact, it meets so many and such powerful ones that it becomes impossible itself. For how is triumph possible over obstacles inherent in the constitution of society and consequently inseparable from competition itself?
In addition to the public services, there is a certain number of professions the practice of which the government has seen fit to more or less exclusively reserve; there is a larger number of which legislation has given a monopoly to a restricted number of individuals. Those which are abandoned to competition are subjected to formalities and restrictions, to numberless barriers, which keep many from approaching, and in these consequently competition is far from being unlimited. In short, there are few which are not submitted to varied taxes, necessary doubtless, etc.
What does all this mean? M. Dunoyer doubtless does not intend that society shall dispense with government, administration, police, taxes, universities, in a word, with everything that constitutes a society. Then, inasmuch as society necessarily implies exceptions to competition, the hypothesis of universal competition is chimerical, and we are back again under the regime of caprice,--a result foretold in the definition of competition. Is there anything serious in this reasoning of M. Dunoyer?
Formerly the masters of the science began by putting far away from them every preconceived idea, and devoted themselves to tracing facts back to general laws, without ever altering or concealing them. The researches of Adam Smith, considering the time of their appearance, are a marvel of sagacity and lofty reasoning. The economic picture presented by Quesnay, wholly unintelligible as it appears, gives evidence of a profound sentiment of the general synthesis. The introduction to J. B. Say's great treatise dwells exclusively upon the scientific characteristics of political economy, and in every line is to be seen how much the author felt the need of absolute ideas. The economists of the last century certainly did not constitute the science, but they sought this constitution ardently and honestly.
How far we are today from these noble thoughts! No longer do they seek a science; they defend the interests of dynasty and caste. The more powerless routine becomes, the more stubbornly they adhere to it; they make use of the most venerated names to stamp abnormal phenomena with a quality of authenticity which they lack; they tax accusing facts with heresy; they calumniate the tendencies of the century; and nothing irritates an economist so much as to pretend to reason with him.
"The peculiar characteristic of the present time," cries M. Dunoyer, in a tone of keen discontent, "is the agitation of all classes; their anxiety, their inability to ever stop at anything and be contented; the infernal labor performed upon the less fortunate that they may become more and more discontented in proportion to the increased efforts of society to make their lot really less pitiful."
Indeed! Because the socialists goad political economy, they are incarnate devils! Can there be anything more impious, in fact, than to teach the proletaire that he is wronged in his labor and his wages, and that, in the surroundings in which he lives, his poverty is irremediable?
M. Reybaud repeats, with greater emphasis, the wail of his master, M. Dunoyer: one would think them the two seraphim of Isaiah chanting a Sanctus to competition. In June, 1844, at the time when he published the fourth edition of his "Contemporary Reformers," M. Reybaud wrote, in the bitterness of his soul: