During the last few decades and in all countries of civilization, the economic life of society has assumed an uncommonly rapid pace of development, a development that every progress on any field of human activity adds swing to. Our social relations have thereby been thrown into a state of unrest, fermentation and dissolution never known before. The ruling classes no longer feel the ground safe under them, nor do existing institutions any longer possess the firmness requisite to breast the storm, that is approaching from all sides. A feeling of uneasiness, of insecurity and of dissatisfaction has seized upon all circles, high and low. The paroxysmal efforts put forth by the ruling classes to end this unbearable state of things by means of tinkering at the body social prove themselves vain and inadequate. The general sense of increasing insecurity, that comes from these failures, increases their uneasiness and discomfort. Hardly have they inserted a beam in the shape of some law into the rickety structure, than they discover ten other places where shoring is still more urgent. All along they are at perpetual strife among themselves and deeply rent by differences of opinion. What one set deems necessary, in order somewhat to calm and reconcile the increasingly discontented masses, the other considers as going too far, and unpardonable weakness and pliancy, only calculated to prick the longing after greater concessions. Striking evidences thereof are the debates in the 1894-5 sessions of the Reichstag, both on the floor of the house and in committee, on the so-called "revolutionary bill," as well as numerous other discussions in all parliaments. Within the ruling classes themselves there exist unbridgeable contrasts, and they sharpen the social conflicts.

Governments—and not in Germany alone—are shaking like reeds in the wind. They must lean on something: without support they cannot exist: they now lean on this side, then on that. In no progressive country of Europe is there a Government with a lasting parliamentary majority, on which it can count with safety. Majorities are breaking up and dissolving; and the ever changing course, in Germany, especially, undermines the last vestige of confidence that the ruling class had in themselves. To-day one set is anvil, the other the hammer; to-morrow it is the other way. The one tears down what the other painfully builds up. The confusion is ever greater; the discontent ever more lasting; the causes of friction multiply and consume in a few months more energies than years did formerly. Along with all that, material sacrifices, called for by manifold taxes, swell beyond all measure.

In the midst of all this, our sapient statesmen are lulling themselves in wondrous illusions. With an eye to sparing property and the rich, forms of taxation are selected that smite the needy classes heaviest, and they are decreed with the belief that, seeing a large portion of the masses have not yet discovered their real nature, neither will they be felt. This is an error. The masses to-day understand fully the nature of indirect imports and taxes upon the necessaries of life. Their growing political education and perspicuity disclose to them the gross injustice of the same; and they are all the more sensitive to these burdens by reason of the wretchedness of their economic conditions, especially where families are large. The rise of prices in the necessaries of life—due to indirect imposts, or to causes that bring on similar results, such as the premiums on brandy and sugar that, to the amount of dozens of millions, a part of the ruling class pockets yearly at the expense of the poor of the kingdom, and that it seeks to raise still higher—are realized to be a gross injustice, a heavy burden, measures that stand in odd contradiction with the nature of the so-called Christian State, the State of Social Reform. These measures extinguish the last spark of faith in the sense of justice of the ruling classes, to a degree that is serious to these. It changes nothing in the final effect of these measures that the draining is done in pennies. The increase in the expenditure is there, and is finally sensible to the feeling and the sight of all. Hundreds upon hundreds of millions cannot be squeezed out of practically empty pockets, without the owners of the pockets becoming aware of the lifting. The strong pressure of direct taxation, directs the dissatisfaction among the poor against the State; the still stronger indirect taxation, directs the discontent against society also, the evil being felt to be of a social as well as political character. In that there is progress. Him whom the gods would destroy, they first make blind.

In the endeavor to do justice to the most opposed interests, laws are heaped upon laws; but no old one is thoroughly repealed, nor new one thoroughly enforced. Everything is done by halves, giving satisfaction in no direction. The requirements of civilization that spring from the life of the people, demand some attention, unless everything is to be risked; even the fractional way they are attended to, demands considerable sacrifice, all the more seeing that our public institutions are overrun by parasites. At the same time, not only are all the unproductive institutions, wholly at variance with the trend of civilization, continued in force, but, due to the existing conflicts of interests, they are rather enlarged, and thus they become all the more burdensome and oppressive in the measure that increasing popular intelligence ever more loudly pronounces them superfluous. Police, armies, courts of law, prisons, the whole administrative apparatus—all are enlarged ever more, and become ever more expensive. And yet neither external nor internal security is obtained. The reverse follows.

A wholly unnatural state of things has gradually arisen in the international relations of the several nations. The relations between nation and nation multiply in the measure that the production of goods increases; that, thanks to improved transportation, the exchange of this mass of merchandise is facilitated; and that the economic and scientific achievements of each become the public possession of all. Treaties of commerce are concluded; expensive routes of traffic—Suez Canals, St. Gotthard Tunnels—are opened with international funds. Individual countries support with heavy subsidies steamship lines that help to promote intercourse between several nations. The Postal Union—a step of first rank in civilization—is established; international conventions are convoked for all imaginable practical and scientific purposes; the literary products of genius of any nation are spread abroad by translations into the leading languages. Thus the tendency is ever more strongly marked toward the internationalizing, the fraternizing of all peoples. Nevertheless, the political, the military state of the nations of Europe stands in strange contrast to this general development. The hatred of nation against nation, Chauvinism, is artificially nourished by all. The ruling classes seek everywhere to keep green the belief that it is the peoples who are hostilely inclined toward one another, and only wait for the moment when one of them may fall upon another and destroy it. The competitive struggle between the capitalists of several countries, together with their jealousy of one another, assume upon the international field the character of a struggle between the capitalists of one country against those of another, and, backed by the political blindness of the large masses, it conjures into existence a contest of military armaments such as the world has never seen before. This contest has brought forth armies of magnitudes that never were known; it produced implements of murder and destruction for land and naval warfare of such perfection as is possible only in an age of such advanced technique as ours. The contest drives these antagonisms to a head, it incites a development of means of destruction that finally destroy themselves. The support of the armies and navies demand sacrifices that yearly become larger, and that finally ruin the richest nation. Germany, for instance, had, according to the imperial budget of 1894-95, a regular army and navy outlay of nearly 700 million marks—inclusive of pensions and of interest on the national debt, which amounts in round figures to two milliards, incurred mainly for purposes of war. Under these war expenses, the appropriations for educational and other purposes of culture suffer severely; the most pressing needs in this direction are neglected; and that side of the State, devoted to so-called external defence, acquires a preponderance that undermines the original purpose of the State itself. The increasing armies absorb the healthiest and most vigorous portion of the nation; for their improvement all mental and physical forces are enlisted in a way as if education in mass-murder were the highest mission of our times. Furthermore, implements of war as of murder are continuously improved: they have attained—in point of swiftness, range and power—a perfection that renders them fearful to friend and foe. If some day this tremendous apparatus is set in operation—when the hostile forces of Europe will take the field with twelve or fourteen million men—the fact will appear that it has become uncontrollable. There is no general who could command such masses; there is no field vast enough to collect and set them up; no administrative apparatus that could nourish them for any length of time. If battles are delivered, hospitals would be lacking to shelter the wounded: the interment of the numerous dead would be an impossibility.

When to all this is added the frightful disturbances and devastations, produced to-day by a European war on the economic-field, there is no exaggeration in the saying: "the next war is the last war." The number of bankruptcies will be unparalleled; export stops—and thereby thousands of factories are condemned to idleness; the supply of food ceases—and thereby the prices of the means of life rise enormously. The number of families whose breadwinner is in the field runs up into the millions, and most of them must be supported. Whence shall the means come for all that?

The political and military state of Europe has taken a development that cannot choose but end in a catastrophe, which will drag capitalist society down to its ruin. Having reached the height of its development, it produces conditions that end with rendering its own existence impossible; it digs its own grave; it slays itself with the identical means that itself, as the most revolutionary of all previous social systems, has called into life.

Gradually a large portion of our municipalities are arriving at a desperate pass: they hardly know how to meet the increasing demands upon themselves. It is more particularly upon our rapidly growing large cities, and upon the localities situated in industrial districts, that the quickened increase of population makes a mass of demands, which the generally poor communities can come up to only by raising taxes and incurring debts. The budgets leap upward from year to year for school buildings, and street paving, for lighting, draining and water works; for sanitary, public and educational purposes; for the police and the administration. At the same time, the favorably situated minority makes the most expensive demands upon the community. It demands higher institutions of education, theatres, the opening of particularly fine city quarters with lighting, pavement, etc., to match. However justly the majority may complain of the preference, it lies in the very nature of modern affairs. The minority has the power and uses it to satisfy its social wants as much as possible at the expense of the collectivity. In and of themselves nothing can be said against these heightened social wants: they denote progress; the fault is only that their satisfaction falls mainly to the lot of the property classes, while all others should share them. A further evil lies in that often the administration is not the best, and yet is expensive. The officials often are inadequate; they are not sufficiently equipped for the many-sided demands made upon them, demands that often presuppose thorough knowledge. The members of Aldermanic Boards have generally so much to do and to attend to in their own private affairs that they are unable to make the sacrifices demanded for the full exercise of these public duties. Often are these posts used for the promotion of private interests, to the serious injury of those of the community. The results fall upon the taxpayers. Modern society cannot think of undertaking a thorough change in these conditions. It is powerless and helpless. It would have to remove itself, and that, of course, it will not. Whatever the manner in which taxes be imposed, dissatisfaction increases steadily. In a few decades, most of our municipalities will be unable to satisfy their needs under their present form of administration and of raising revenues. On the municipal as well as on the national field, the need of a radical change is manifest: it is upon the municipalities that the largest social demands are made: it is society in nuce: it is the kernel from which, so soon as the will and the power shall be there, the social change will radiate. How can justice be done to-day, when private interests dominate and the interests of the commonweal are made subservient?

Such, in short, is the state of things in the nation and in the municipality. They are both but the reflection of the economic life of society.

* * * * *

The struggle for existence in our economic life grows daily more gigantic. The war of all against all has broken out with virulence; it is conducted pitilessly, often regardless of the weapon used. The well-known French expression: "ote-toi de la, que je m'y mette." (Get away, that I may step in) is carried out in practice with vigorous elbowings, cuffings, and pinchings. The weaker must yield to the stronger. Where physical strength—which here is the power of money, of property—does not suffice, the most cunning and unworthy means are resorted to. Lying, swindle, deceit, forgery, perjury—the very blackest crimes are often committed in order to reach the coveted object. As in this struggle for existence one individual transgresses against the other, the same happens with class against class, sex against sex, age against age. Profit is the sole regulator of human feelings; all other considerations must yield. Thousands upon thousands of workingmen and working-women are, the moment profit demands it, thrown upon the sidewalk, and, after their last savings have been spent, turned to public charity or forced to emigrate. Workingmen travel, so to speak, in herds from place to place, criss-cross across the country, and are regarded by "decent" society with all the more fear and horror, seeing that the continuity of their enforced idleness deteriorates their external appearance, and, as a consequence, demoralizes them internally. Decent society has no inkling of what it means to be forced, for months at a stretch, to be denied the simplest exigencies of order and cleanliness, to wander from place to place with a hungry stomach, and to earn, generally, nothing but ill-concealed fear and contempt, especially from those quarters that are the very props of this system. The families of these wretches suffer all along utmost distress—a distress that not infrequently drives the parents, out of desperation, to frightful crimes upon their own children and themselves. The last years have furnished numerous shocking instances of whole families falling a prey to murder and suicide. Let one instance do for many. The private correspondent, S——, in Berlin, 45 years of age, with a still handsome wife 39 years old, and a daughter of 12, is without work and starving. The wife decides, with the consent of her husband, to turn prostitute. The police gets wind thereof. The wife is placed under moral control. The family, overcome with shame and desperate, agree, all three, to poison themselves, and carry out their resolve on March 1, 1883.[160] A few days before, the leading circles of Berlin celebrated great court festivities at which hundreds of thousands were squandered.

Such are the shocking contrasts of modern society—and yet we live in "the best of all possible worlds." Berlin has since then often witnessed the holocaust of whole families due to material want. In 1894 the spectacle was frequent, to an extent that called forth general horror; nor are the instances few, reported from large and small towns within and without Germany. This murder and suicide of whole families is a phenomenon peculiar to modern times, and an eloquent sign of the sorry economic state that society is in.

This general want also drives women and girls in increasing numbers into the arms of prostitution. Demoralization and crime are heaped up, and assume the most manifold forms. The only thing that prospers is the jails, penitentiaries and so-called houses of correction, no longer able to accommodate the mass that is sent to them. The crimes of all sorts and their increase are intimately connected with the economic state of society—a fact, however, that the latter will not have. Like the ostrich, it sticks its head in the sand, to avoid having to admit the incriminating state of things, and it lies to the point of deceiving itself into the belief that the fault lies with the laziness of the workingmen, with their love of pleasure, and with their irreligiousness. This is a self-deception of the most dangerous, or a hypocrisy of the most repulsive, sort. The more unfavorable the state of society is for the majority, all the more numerous and serious are the crimes committed. The struggle for existence assumes its rudest and most violent aspect: it transfers man into conditions where each sees a mortal enemy in the other. The social bonds become looser every day.[161]

The ruling classes, who do not probe matters to the bottom, or do not like to, seek to meet the evil after their own fashion. If poverty and want, and, as a result therefrom, demoralization and crime increase, the source of the evil is not searched after, so that it may be stopped; no; the products of the conditions are punished. The more gigantic the evils grow, and the numbers of evil-doers multiply in proportion, proportionately severe penalties and persecutions are deemed necessary. It is sought to drive out the devil with Beelzebub. Prof. Haeckel also considers it proper to proceed against criminals with the severest punishments possible, and that capital punishment, in particular, be stringently applied.[162] By this stand the Professor places himself in sweet accord with the re-actionists of all shades, who otherwise are mortally opposed to him. Haeckel is of the opinion that incorrigible scape-graces must be uprooted like weeds that take from plants light, air and space. Had Haeckel turned his mind slightly toward social, instead of engaging it wholly with natural science, he would know that these criminals could, in most instances, be transformed into useful members of human society, provided society offered them the requisite conditions of existence. He would also find that the annihilation of individual criminals or the rendering of them harmless, prevents as little the commission of fresh crimes in society, as the removal of weeds on a field would prevent their returning if the roots and seeds are not likewise destroyed. Absolutely to prevent the forming of harmful organisms in Nature is a feat man never will be able to achieve but to so improve his own social system, a system produced by himself, that it may afford favorable conditions of life for all, and furnish to each equal freedom to unfold, to the end that they no longer need suffer hunger, or be driven to satisfy their desire for property, or their ambition at the expense of others—that is possible. Let the cause of the crimes be studied, and let that be removed; then will the crimes themselves be wiped out.[163]

Those who would remove crimes by removing the causes thereof, cannot, as a matter of course, sympathize with a plan of brutal suppression. They cannot prevent society from protecting itself after its own fashion against the criminals, whom it cannot allow a free hand; but we demand all the more urgently the radical reformation of society, i. e., the removal of the causes of crime.

The connection between social conditions, on the one hand, and evildoing and crimes, on the other, has been frequently established by statisticians and sociologists. One of the misdemeanors nearest at hand—one that, all Christian charitable tenets to the contrary notwithstanding, modern society regards as a misdemeanor—is begging, especially during hard times. On that subject, the statistics of the Kingdom of Saxony inform us that, in the measure in which the last industrial crisis increased—a crisis that began in Germany in 1890, and whose end is not yet in sight—the number of persons also increased who were punished for begging. In 1889, there were 8,566 persons punished for this crime in the Kingdom of Saxony; in 1890, there were 8,815; in 1891, there were 10,075; and in 1892 the figures rose to 13,120—quite an increase. Mass-impoverishment on one side, swelling affluence on the other—such is the sign-manual of our age. In Austria, in 1873, there was one pauper to every 724 persons; in 1882, to every 622 persons. Crimes and misdemeanors show similar tendency. In Austria-Hungary, in 1874, there were 308,605 persons sentenced in the criminal courts; in 1892, their number was 600,000. In the German Empire, in 1882, there were 329,968 persons sentenced for crimes and misdemeanors under the laws of the land; that is to say, to every 10,000 inhabitants of twelve years and over there were 103.2 criminals; in 1892, the number of criminals was 422,327, or 143.3—an increase of 39 per cent. Among the persons punished, there were, for crimes and misdemeanors against property:—

We think these figures speak volumes. They show how the deterioration of social conditions intensify and promote poverty, want, misdemeanors and crimes.

The basis of our social state is the capitalist system of production. On it modern society rests. All social, all political institutions are results and fruits of that system. It is the ground from which the whole social and political superstructure, together with its bright and dark sides, have sprung up. It influences and dominates the thoughts and feelings and actions of the people who live under it. Capital is the leading power in the State and in Society: the capitalist is the ruler of the propertyless, whose labor-power he buys for his use, and at a price, that, like all other merchandise, is governed by supply and demand and oscillates now above, then below the cost of reproduction. But the capitalist does not buy labor-power out of "sweet charity," in order to do a favor to the workingmen, although he often so pretends. He buys it for the purpose of obtaining surplus wealth from the labor of the workingmen, which he then pockets under the name of profit, interest, house and ground rent. This surplus wealth, squeezed out of the workingmen, and which in so far as the capitalist does not squander it in dissipation, crystallizes in his hands into more capital, puts him in a condition to steadily enlarge his plant, improve the process of production, and occupy increased labor forces. That, at the same time, enables him to step up before his weaker competitors, like a mailed knight before an unarmed pedestrian, and to destroy them. This unequal struggle between large and small capital spreads amain, and, as the cheapest labor-power, next to that of children and lads, woman plays therein a role of increasing importance. The result is the ever sharper division of a smaller minority of mighty capitalists and a mass of capital-less male and female lack-alls whose only resource is the daily sale of their labor-power. The middle class arrives hereby at a plight that grows ever graver. One field of industry after another, where small production still predominated, is seized and occupied to capitalist ends. The competition of capitalists among themselves compels them to explore ever newer fields of exploitation. Capital goes about "like a roaring lion, seeking whom it may devour." The smaller and weaker establishments are destroyed; if their owners fail to save themselves upon some new field—a feat that becomes ever harder and less possible—then they sink down into the class of the wage earners, or of Catilinarians. All efforts to prevent the downfall of handicraft and of the middle class by means of institutions and laws, borrowed from the lumber-room of the musty past, prove utterly ineffective. They may enable one or another to deceive himself on his actual condition; but soon the illusion vanishes under the heavy weight of facts. The process of absorption of the small by the large takes its course with all the power and pitilessness of a law of Nature, and the process is sensible to the feeling and the sight of all.

In the period between 1875-1882, the number of small industries decreased in Prussia by 39,655,[164] although the population increased in this period by about two million heads. The number of workmen employed in small industries sank, during that time, from 57.6 per cent., to 54.9 per cent. The industrial statistics for 1895 will furnish much more drastic figures. The development of large production stands in close relation to the development of steam machine and steam horse-power. And what is the picture presented by these? Prussia had:—

The Kingdom of Saxony had:—

In 1861, a steam engine in Saxony had, on an average, a 15.5 horse-power; in 1891, it had 19. All Germany had in 1878 about three million horse-power in operation in industry; in 1894, about five million. Austria had in 1873 in round figures 336,000 horse-power; in 1888, about 2,150,000. Steam power spreads daily, and stronger steam machines drive out weaker ones—large production drives out small. The fact is shown emphatically in the industries in which steam has become the general power, the brewery industry, for instance. In the German brewery tax department, exclusive of Bavaria, Wuertemburg, Baden and Alsace-Lorraine, there were:—

The breweries in general, this table shows, had decreased during this period 38 per cent., the industrially operated ones 31.1 per cent.; the output, however, had increased 68.8 per cent. The giant concerns increased at the expense of the middle and small ones. The identical development is going on in all countries of civilization, in all industries capitalistically operated. Let us now take up the brandy distilleries. In all the eight provinces of Prussia, there were in operation:—[165]

Similar results are revealed in the coal and the mineral mining industries of the German Empire. In the former, the number of leading concerns—623 in number between the years 1871-1875—dropped to 406 in 1889, but the output increased simultaneously from 34,485,400 tons to 67,342,200 tons, and the average number of employees rose from 172,074 to 239,954. In the latter, the average number of leading establishments between 1871-1875, was 3,034, with an average force of 277,878 hands, that turned out 51,056,900 tons; in 1889, the number of leading establishments had dropped to 1,962, while the average force had risen to 368,896 hands, and the output to 99,414,100 tons.[166] We see that in the coal mine industry the number of concerns decreased during that period 35 per cent., while the number of employees rose 40 per cent., and production as much as 95.2 per cent. Similarly in the mineral mining industry. Here the number of establishments decreased 35.3 per cent., while the number of workingmen employed rose 33 per cent., and production 94.7 per cent. A smaller but much richer number of employers now confronted a greatly swollen number of proletarians. Nor does this technical revolution proceed in industry alone: it is also going on in the department of transportation and communication. German commerce had upon the seas:—

Sail navigation, we see, declines perceptibly, but in so far as it continues to exist, the tonnage of vessels increases, and the force of the crews decreases. In 1871, there came to every one sailing vessel 205.9 tons and 7.9 crew; in 1893, however, the average tonnage per sailing vessel was 271.7 and only a crew 6.4 strong. A different picture is offered by the German ocean steamship navigation. Germany had:—

We see that, not only did the number of steamers rise considerably, but that their tonnage increased still more; on the other hand, the force of the crews had relatively decreased. In 1871, steamers had on an average a 558 tonnage, with a 32.1 crew; in 1893 they had a 797.5 tonnage and only a 24.5 crew. It is an economic law that the number of workingmen decreases everywhere with the concentration of industry, while, relatively to the whole population, wealth concentrates in ever fewer hands, and the number of employers, rendered unable to hold their own and driven into bankruptcy by the process of concentration, mounts ever higher.

In the eight old provinces of Prussia, the population increased 42 per cent. during 1853-1890. But the incomes in the several grades rose in the following rates:—[167]

The number of incomes up to 3,000 marks increased exactly with the population; it would, however, have lagged behind it if, within the period of 1853-1890, there had not been an extraordinary increase of national, State, municipal and private officials, the large majority of whose incomes falls below 3,000 marks. On the other hand, the number of large incomes has risen beyond all proportion, although, during the period under consideration, there was not yet any provision in Prussia making the correct estimate of incomes obligatory. This was introduced in 1891. The actual increase of incomes was, accordingly, much larger than the figures indicate. As stated before, the concentration of wealth, on the one side, is paralleled with mass-proletarianization, on the other, and also with swelling figures of bankruptcy. During the period of 1880-1889, the number of bankruptcy cases, adjudicated by law, averaged, in Germany, 4,885 a year; it rose to 5,908 in 1890; to 7,234 in 1891; and to 7,358 in 1892. These figures do not include the large number of bankruptcies that did not reach the courts, the assets not being large enough to cover the costs; neither are included among them those that were settled out of court between the debtors and their creditors.

The same picture that is presented by the economic development of Germany is presented by that of all industrial countries of the world. All nations of civilization are endeavoring to become industrial States. They wish to produce, not merely for the satisfaction of their own domestic wants, but also for exportation. Hence the absolute propriety of no longer speaking of "national" but of "international" economy. It is the world's market that now regulates the price of numberless products of industry and agriculture, and that controls the social position of nations. The productive domain, that, in the near future, will dominate the world's market is that of the United States—a quarter from which is now proceeding the principal impetus toward revolutionizing the relations of the world's market, and, along therewith, all bourgeois society. According to the census of 1890, the capital invested in industry in the United States has risen to 6,524 million dollars, as against 2,790 million in 1880, an increase of 136 per cent. The value of the industrial products rose during that period from 5,369 million dollars to 9,370 million, or 75 per cent. in round figures, while the population increased only 25 per cent.[168] The United States has reached a point of development where it must export a large mass of products in order to be able to continue producing in sufficient quantities. Instead of importing articles of industry from Europe, these will henceforth be exported in large volumes, thereby upsetting commercial relations everywhere. What pass has been reached there is indicated by the mammoth struggles between Capital and Labor, by the distress of the masses that has lasted years, and by the colossal increase of bankruptcy during the last crisis. In 1879, 1880 and 1881 the sum absorbed in bankruptcies ran up to 82 million dollars in round figures; in 1890 the amount was 190 million dollars, and in 1891 it rose to 331 million dollars. An instance will illustrate the gigantic measure of the concentration of capital in that country. In 1870, there were in the United States 2,819 woolen mills, in which 96 million dollars were invested as capital; in 1890 the number of these mills had sunk to 1,312, but the capital invested had risen to 136 million. In 1870, on an average, $34,000 sufficed to establish a woolen mill; in 1890, not less than $102,000 was requisite. The increased demands upon capital forces the building of stock corporations, which, in turn, promote the concentration still more. Where the powers of a single capitalist do not suffice, several of them join; they appoint technical overseers, who are well paid, and they pocket, in the form of dividends, the profits which the workingmen must raise. The restlessness of industry reaches its classic form in the stock corporation, which demonstrates how useless the person of the capitalist has become as a leader of industry.

Seeing that this process of development and concentration is proceeding equally in all leading countries, the inevitable results of the anarchic method of production is "over-production," the stoppage of trade, the crisis.

Accordingly, the crisis is a consequence of the absence of any means whatever whereby at any time the actual demand for certain goods can be gauged and controlled. There is no power in bourgeois society able to regulate production as a whole; the customers are spread over too vast an area; then also, their purchasing power, upon which depends their power of consumption, is affected by a number of causes, beyond the control of the individual producer. Moreover, along with each individual producer, are a number of others, whose productive powers and actual yield also are unknown to him. Each strives, with all the means at his command—cheap prices, advertisements, long credit, drummers, also secret and crafty detraction of the quality of the goods of his competitor, the last of which is a measure that flourishes particularly at critical moments—to drive all other competitors from the field. Production is wholly left to accident and to the judgment of individuals. Accident often is more unfavorable than otherwise. Every capitalist must produce a certain quantity of goods, in order that he may exist; he is, however, driven to increase his output, partly because his increase of revenues depends upon that, partly also because upon that depend his prospects of being able to overcome his competitors, and keep the field all to himself. For a while, the output is safe; the circumstance tends to expansion and increased production. But prosperous times do not tempt one capitalist alone; they tempt them all. Thus production rises far above demand, and suddenly the market is found overstocked. Sales stop; prices fall; and production is curtailed. The curtailment of production in any one branch implies a diminished demand for workingmen, the lowering of wages and a retrenchment of consumption in the ranks of labor. A further stoppage of production and business in other departments is the necessary consequence. Small producers of all sorts—trademen, saloonkeepers, bakers, butchers, etc.,—whose customers are chiefly workingmen, lose the profitable sale of their goods and likewise land in distress.

The way in which such a crisis works appears from a census on the unemployed which the Social Democratic Party of Hamburg undertook on February 14, 1894. Of 53,756 workingmen who were interrogated, and of whom 34,647 were married, with an aggregate family dependence of 138,851, there were 18,422 who, during the last year, had been idle a total of 191,013 weeks; 5,084 persons had been idle from 1 to 5 weeks; 8,741 from 6 to 10 weeks; 1,446 from 11 to 15 weeks; 984 from 16 to 20 weeks; 2,167 more than 20 weeks. These are workingmen, who wished to work, but who, in this best of all possible worlds, could find no work. The sorry plight of these people may be imagined.

Again, one industry furnishes its raw material to another; one depends upon the other; it follows that all must suffer and pay for the blows that fall upon any. The circle of participants and sufferers spreads ever wider. A number of obligations, assumed in the hope of a long continuance of prosperity, cannot be met, and thus new fuel is added to the conflagration of the crisis, whose flames rise higher from month to month. An enormous mass of stored-up goods, tools, machinery, becomes almost worthless. The goods are got rid of at great sacrifices. Not only their proprietor is thereby ruined, but also dozens of others who are thereby likewise forced to give up their goods under cost. During the crisis itself, the method of production is all along improved with the view of meeting future competition; but this only prepares the ground for new and still worse crises. After the crisis has lasted years, after the surplusage of goods has been gradually done away with through sales at ruinous prices, through retrenchment of production, and through the destruction of smaller concerns, society slowly begins to recover again. Demand rises, and production follows suit—slowly at first and cautious, but, with the continuance of prosperity, the old vertigo sets in anew. Everyone is anxious to recover what he lost, and expects to be under cover before the next crisis breaks in. Nevertheless, seeing that all capitalists foster the identical thought, and that each one improves his plant so as to head off the others, the catastrophe is soon brought on again and with all the more fatal effect. Innumerable establishments rise and fall like balls at a game, and out of such continuous ups and downs flows the wretched state of things that is witnessed at all crises. These crises crowd upon one another in the measure that large production increases, and the competitive struggle—not between individuals only, but between whole nations—becomes sharper. The scampering for customers, on a small scale, and for markets on a large one, gains in fierceness, and ends finally in great losses. Goods and implements are heaped mountain high, yet the masses of the people suffer hunger and want.

The autumn of the year 1890 brought new proof of the correctness of this outline. After a long series of years of business depression, during which, however, large capitalist development was steadily progressing, an improvement in our economic life set in during 1887-8, stimulated in no slight degree by the extensive changes introduced in our army and navy systems. The upward movement continued during 1889 and up into the first quarter of 1890. During this period, a number of new establishments began to crop up everywhere in several fields of industry; a large number of others were enlarged and improved to the highest point of technical perfection, and their capacity greatly increased. In the same measure that this large capitalist development progressed, a larger and ever larger number of establishments passed from the hands of individual capitalists into stock corporations—a change that ever is more or less connected with an increase of production. The new issues, that, as a result of these combinations and due also to the increase of the public debt, were contracted in the international money market, ran up in 1887 to about 4,000 million marks; in 1888, to 5,500 million; and in 1889, to even 7,000 million. On the other hand, the capitalists of all countries were endeavoring to "regulate" prices and production by means of national and international agreements. Rings and Trusts sprang up like mushrooms over night. The majority, often all the capitalists concerned in the more important branches of production, formed syndicates, by means of which prices were fixed, and production was to be regulated by the light of accurate statistical information. Over-production was thus to be prevented. A marvelous monopolization of industry, such as had never been seen, was thus achieved in the interest of the capitalists and at the expense of the workingmen, and of the consumers in general. For a while it seemed as if capital had come into possession of the means that enabled it to control the market in all directions, to the injury of the public and to its own greater glory. But appearances deceived. The laws of capitalist production proved themselves stronger than the shrewdest representatives of the system who imagined they held in their hands the power to regulate it. The crisis set in. One of the largest international business houses of England fell and involved a number of others in its fall. All exchanges and markets—of London, Paris, Vienna and Berlin, as far as St. Petersburg, New York and Calcutta—shook and trembled. It had again been shown that the profoundest calculations prove deceptive, and that capitalist society cannot escape its fate.

All this notwithstanding, capitalism proceeds on its course: it can be no other than it is. By means of the forms that its course dictates, it throws all the laws of capitalist economics overboard. "Free competition," the Alpha and Omega of bourgeois society, is to bring the fittest to the top of the enterprises; but the stock corporation removes all individuality, and places the crown upon that combination that has the longest purse and the strongest grip. The syndicates, Trusts and rings carry the point still further. Whole branches of industry are monopolized; the individual capitalist becomes but a pliant link in a chain, held by a capitalist committee. A handful of monopolists set themselves up as lords of the world and dictate to it the price of goods, to the workingmen their wages and conditions of life.

The whole course of this development brings out how utterly superfluous the individual capitalist has become, and that production, conducted upon a national and international scale, is the goal toward which society steers—with this difference, that, in the end, this organized production will redound to the benefit, not of a class, but of the collectivity.

The economic revolution just sketched, and which is driving bourgeois society with great swiftness to its apogee, becomes more pointed from year to year. While Europe finds itself pressed more and more in its foreign markets, and finally on its own territory, by the competition of the United States, latterly enemies have risen in the East also, rendering still more critical the plight of Europe, and at the same time threatening the United States also. This danger proceeds from the progress of English India toward becoming a great agricultural and industrial State—a progress that, in the first place, looks to the meeting of the wants of India's own two hundred million strong population, and, in the second place, develops into a mortal enemy of English and German industry in particular. And still another industrial State is beginning to rise in the East—Japan. According to the "Kreuzzeitung" of February 20, 1895, "during the last ten years, Japan has imported from Europe the best perfected machinery for setting up industrial plants, especially in cotton spinning. In 1889, she had only 35,000 spindles; now she has over 380,000. In 1889, Japan imported 31 million pounds of raw cotton; in 1891, she imported 67 million. She is steadily decreasing her importations of manufactured articles, and increasing her importations of raw material, which she then retransports in the shape of manufactures. During the last year Hongkong, a European colony, bought over two million marks of Japanese cotton goods. The Japanese are providing their own markets with goods that formerly were imported from Europe and the United States. They are also exporting to Oriental markets, that were formerly provided from western sources. They are exporting matches and soap; they are manufacturing clothing, felt hats and hosiery; they have glass-blowing establishments, breweries, tileries, tan-yards and rope-walks."

The further expansion of Japan's industry steadily reduces importations from Europe and the United States, and simultaneously places it in condition to turn up in the world's market as a competitor. Should China also, as a result of the Japanese-Chinese war, be compelled to open her immense territory to European culture, then, in view of the great adaptability and marvelous unpretentiousness of the Chinese workingman, another competitive power will have risen, more dangerous than any that the world's market has yet had to reckon with. Truly, the future of bourgeois society is threatened from all sides with grave dangers, and there is no way to escape them.

Thus the crisis becomes permanent and international. It is a result of all the markets being overstocked with goods. And yet, still more could be produced; but the large majority of people suffer want in the necessaries of life because they have no income wherewith to satisfy their wants by purchase. They lack clothing, underwear, furniture, homes, food for the body and mind, and means of enjoyment, all of which they could consume in large quantities. But all that does not exist to them. Hundreds of thousands of workingmen are even thrown upon the sidewalk, and rendered wholly unable to consume because their labor-power has become "superfluous" to the capitalists. Is it not obvious that our social system suffers of serious ailments? How could there be any "over-production" when there is no lack of capacity to consume, i. e., of wants that crave satisfaction? Obviously, it is not production, in and of itself, that breeds these unhallowed conditions and contradictions: it is the system under which production is carried on, and the product is distributed.

* * * * *

In human society, all its members are bound to one another by a thousand threads; and these threads are all the more numerous in proportion to a people's grade of culture. If disturbances set in, they are forthwith felt by all. Disturbances in production affect distribution and consumption; and vice versa. The feature of capitalist production is the concentration of property into ever fewer hands and into ever larger establishments. In distribution, on the contrary, an opposite current is noticeable. Whoever, due to the destructive effect of competition, is stricken from the list of independent producers, seeks, in nine cases out of ten, to squeeze himself as a dealer between the producer and the consumer, and thus to earn his livelihood.

Hence the striking phenomenon of the increase of the middleman—dealers, shopkeepers, hucksters, commissioners, brokers, agents, saloonkeepers, etc. Most of these, among whom women are strongly represented, lead a life of worries and a needy existence. Many are compelled, in order to keep their heads above water, to speculate upon the lowest passions of man and to promote them in all manner of ways. Hence the marvelous swing of the most repulsive advertisements, particularly in all matters the object of which is the gratification of sexual pleasures.

It is undeniable, and, viewed from a higher viewpoint, it is also cheering, that the current for a greater enjoyment of life runs deep in modern society. Man begins to understand that, in order to be human, a life worthy of human beings is requisite, and the feeling is expressed in such form as corresponds with the respective conceptions of the enjoyment of life. As far as the distribution of its wealth is concerned, society has become much more aristocratic than at any previous period. Between the richest and the poorest, the chasm is wider to-day than ever before. On the other hand, with regard to its ideas and laws, society has become more democratic.[169] Hence the masses strive after greater equality; and, seeing that in their ignorance they know not yet the path by which to attain their wishes, they seek equality in the imitation of the upper classes by furnishing themselves with whatever pleasures are within their reach. All possible artificial means are resorted to in order to exploit this tendency; the consequences are often serious. The gratification of a justified desire thus leads in a number of cases to wrong paths, often to crime; and society intervenes in its own way, without thereby improving matters in the least.

The increasing mass of the middlemen draws many evils in its wake. Although this class toils arduously and works under the load of heavy cares, the majority are parasites, they are unproductively active, and they live upon the labors of others, just the same as the capitalist class. Higher prices is the inevitable consequence of this industry. Food and other goods rise in price in such manner that they often cost twice or many times as much as the producer received for them.[170] If it is thought unadvisable or impossible to materially raise the price of the goods, lest consumption decline, they are artificially deteriorated, and recourse is had to adulteration of food, and to false weights and measures, in order to make the requisite profits. The chemist Chevalier reports that he knows, among the several adulterations of food, 32 for coffee, 30 for wine, 28 for chocolate, 24 for meal, 23 for brandy, 20 for bread, 19 for milk, 10 for butter, 9 for olive oil, 6 for sugar, etc. The Chamber of Commerce of Wesel reported in 1870 that an extensive system of swindle was practiced in the shops in the sale of ready-weighed articles: for 1 pound, 24 or 26 pennyweights were given, and in that way twice as much was gained as the difference in the price. Workingmen and small traders who get their goods on credit and who must, accordingly, submit, even when the fraud is obvious, fare worst of all. Grave abuses are also perpetrated in bakeries. Swindling and cheating are inseparable from our modern conditions, and certain government institutions, such as high indirect taxes, are direct incentives thereto. The laws against the adulteration of food alter matters but little. The struggle for existence compels the swindlers to resort to ever shrewder means, nor is there any thorough and strict inspection. Leading and influential circles of our ruling classes are even interested in the system of swindle. Under the pretext that, in order to discover adulterations a more comprehensive and more expensive administrative apparatus is required, and that "legitimate business" would suffer thereby, almost all inspection, worthy of the name, is lamed. If, however, laws and measures of inspection do actually intervene, they affect a considerable rise in the price of the unadulterated products, seeing that the lower price was made possible only by adulteration.

With the view of avoiding these evils of trade, evils that, as ever and everywhere, are hardest on the masses, "Consumers' Associations" have been set up. In Germany, the "Consumers' Association" plan, especially among the military and civil service employees, reaches such a point that numerous business houses have been ruined, and many are not far from the same fate. These Associations demonstrate the superfluousness of trade in a differently organized society.[171] In that consists their principal merit. The material advantages are not great for the members; neither are the facilities that they offer enough to enable the members to discover any material improvement in their condition. Not infrequently is their administration poor, and the members must pay for it. In the hands of capitalists, these Associations even become an additional means to chain the workingman to the factory, and they are used as weapons to depress wages. The founding of these "Consumers' Associations" is, however, a symptom that the evils of trade and at least the superfluousness of the middlemen have been realized in wide circles. Society will reach that point of organization at which trade becomes wholly superfluous; the product will reach the consumer without the intervention of any middlemen other than those who attend to its transportation from place to place, and who are in the service of society. A natural demand, that flows from the collective procurement of food, is its collective preparation for the table upon a large scale, whereby a further and enormous saving would be made of energy, space, material and all manner of expenditures.

* * * * *

The economic revolution in industry and transportation has spread to agriculture also, and in no slight degree. Commercial and industrial crises are felt in the country as well. Many relatives of families located in the country are partially or even wholly engaged in industrial establishments in cities, and this sort of occupation is becoming more and more common because the large farmers find it convenient to convert on their own farms a considerable portion of their produce. They thereby save the high cost of transporting the raw product—potatoes that are used for spirits, beets for sugar, grain for flour or brandy or beer. Furthermore, they have on their own farms cheaper and more willing labor than can be got in the city, or in industrial districts. Factories and rent are considerably cheaper, taxes and licenses lower, seeing that, to a certain extent, the landed proprietors are themselves lawgivers and law officers: from their midst numerous representatives are sent to the Reichstag: not infrequently they also control the local administration and the police department. These are ample reasons for the phenomenon of increasing numbers of funnel-pipes in the country. Agriculture and industry step into ever closer interrelation with each other—an advantage that accrues mainly to the large landed estates.

The point of capitalist development reached in Germany also by agriculture has partially called forth conditions similar to those found in England and the United States. As with the small and middle class industries, so likewise with the small and middle class farms, they are swallowed up by the large. A number of circumstances render the life of the small and middle class farmer ever harder, and ripen him for absorption by the large fellow.

No longer do the one-time conditions, as they were still known a few decades ago, prevail in the country. Modern culture now pervades the country in the remotest corners. Contrary to its own purpose, militarism exercises a certain revolutionary influence. The enormous increase of the standing army weighs, in so far as the blood-tax is concerned, heaviest of all upon the country districts. The degeneration of industrial and city life compels the drawing of by far the larger portion of soldiers from the rural population. When the farmer's son, the day laborer, or the servant returns after two or three years from the atmosphere of the city and the barracks, an atmosphere not exactly impregnated with high moral principles;—when he returns as the carrier and spreader of venereal diseases, he has also become acquainted with a mass of new views and wants whose gratification he is not inclined to discontinue. Accordingly, he makes larger demands upon life, and wants higher wages; his frugality of old went to pieces in the city. Transportation, ever more extended and improved, also contributes toward the increase of wants in the country. Through intercourse with the city, the rustic becomes acquainted with the world from an entirely new and more seductive side: he is seized with new ideas: he learns of the wants of civilization, thitherto unknown to him. All that renders him discontented with his lot. On top of that, the increasing demands of the State, the province, the municipality hit both farmer and farmhand, and make them still more rebellious.

True enough, many farm products have greatly risen in value during this period, but not in even measure with the taxes and the cost of living. On the other hand, transmarine competition in food materially contributes toward reducing prices: this reduces incomes: the same can be counterbalanced only by improved management: and nine-tenths of the farmers lack the means thereto. Moreover, the farmer does not get for his product the price paid by the city: he has to deal with the middlemen: and these hold him in their clutches. The broker or dealer, who at given seasons traverses the country and, as a rule, himself sells to other middlemen, wants to make his profits: the gathering of many small quantities gives him much more trouble than a large invoice from a single large holder: the small farmer receives, as a consequence, less for his goods than the large farmer. Moreover, the quality of the products from the small farmer is inferior: the primitive methods that are there generally pursued have that effect: and that again compels the small farmer to submit to lower prices. Again, the farm owner or tenant can often not afford to wait until the price of his goods rises. He has payments to meet—rent, interest, taxes; he has loans to cancel and debts to settle with the broker and his hands. These liabilities are due on fixed dates: he must sell however unfavorable the moment. In order to improve his land, to provide for co-heirs, children, etc., the farmer has contracted a mortgage: he has no choice of creditor: thus his plight is rendered all the worse. High interest and stated payments of arrears give him hard blows. An unfavorable crop, or a false calculation on the proper crop, for which he expected a high price, carry him to the very brink of ruin. Often the purchaser of the crop and the mortgagee are one and the same person. The farmers of whole villages and districts thus find themselves at the mercy of a few creditors. The farmers of hops, wine and tobacco in Southern Germany; the truck farmers on the Rhine; the small farmers in Central Germany—all are in that plight. The mortgagee sucks them dry; he leaves them, apparent owners of a field, that, in point of fact, is theirs no longer. The capitalist vampire often finds it more profitable to farm in this way than, by seizing the land itself and selling it, or himself doing the farming. Thus many thousand farmers are carried on the registers as proprietors, who, in fact, are no longer such. Thus, again, many a large farmer—unskilled in his trade, or visited by misfortune, or who came into possession under unfavorable circumstances—also falls a prey to the executioner's axe of the capitalist. The capitalist becomes lord of the land; with the view of making double gains he goes into the business of "butchering estates:" he parcels out the domain because he can thereby get a larger price than if he sold it in lump: then also he has better prospects of plying his usurious trade if the proprietors are many and small holders. It is well known that city houses with many small apartments yield the largest rent. A number of small holders join and buy a portion of the parcelled-out estate: the capitalist benefactor is ready at hand to pass larger tracts over to them on a small cash payment, securing the rest by mortgage bearing good interest. This is the milk in the cocoanut. If the small holder has luck and he succeeds, by utmost exertion, to extract a tolerable sum from the land, or to obtain an exceptionally cheap loan, then he can save himself; otherwise he fares as shown above.

If a few heads of cattle die on the hands of the farm-owner or tenant, a serious misfortune has befallen him; if he has a daughter who marries, her outfit augments his debts, besides his losing a cheap labor-power; if a son marries, the youngster wants a piece of land or its equivalent in money. Often this farmer must neglect necessary improvements: if his cattle and household do not furnish him with sufficient manure—a not unusual circumstance—then the yield of the farm declines, because its owner cannot buy fertilizers: often he lacks the means to obtain better seed. The profitable application of machinery is denied him: a rotation of crops, in keeping with the chemical composition of his farm, is often not to be thought of. As little can he turn to profit the advantages that science and experience offer him in the conduct of his domestic animals: the want of proper food, the want of proper stabling and attention, the want of all other means and appliances prevent him. Innumerable, accordingly, are the causes that bear down upon the small and middle class farmer, drive him into debt, and his head into the noose of the capitalist or the large holder.

The large landholders are generally intent upon buying up the small holdings, and thereby "rounding up" their estates. The large capitalist magnates have a predilection for investments in land, this being the safest form of property, one, moreover, that, with an increasing population, rises in value without effort on the part of the owners. England furnishes the most striking instance of this particular increase of value. Although due to international competition in agricultural products and cattle-raising, the yield of the land decreased during the last decades, nevertheless, seeing that in Scotland two million acres were converted into hunting grounds, that in Ireland four million acres lie almost waste, that in England the area of agriculture declined from 19,153,900 acres in 1831, to 15,651,605 in 1880, a loss of 3,484,385 acres, which have been converted into meadow lands, rent increased considerably. The aggregate rent from country estates amounted, in pounds sterling, to:—

Accordingly, an increase of 26.2 per cent. within 23 years, and that without any effort on the part of the owners. Although, since 1880, due to the ever sharper international competition in food, the agricultural conditions of England and Ireland have hardly improved, the large English landlords have not yet ventured upon such large demands upon the population as have the continental, the German large landlords in particular. England knows no agricultural tariffs; and the demand for a minimum price, fixed by government, of such nature that they have been styled "price raisers" and as the large landlords of the East Elbe region together with their train-bands in the German Reichstag are insisting on at the cost of the propertyless classes, would raise in England a storm of indignation.

According to the agricultural statistics gathered in Germany on June 2, 1882, the farms fell into the following categories according to size:—

According to Koppe, a minimum of 6 hectares are requisite in Northern Germany for a farmer's family to barely beat itself through; in order to live in tolerable circumstances, 15 to 20 hectares are requisite. In the fertile districts of Southern Germany, 3 to 4 hectares are considered good ground to support a peasant family on. This minimum is reached in Germany by not four million farms, and only about 6 per cent. of the farmers have holdings large enough to enable them to get along in comfort. Not less than 3,222,270 farmers conduct industrial or commercial pursuits besides agriculture. It is a characteristic feature of the lands under cultivation that the farms of less than 50 hectares—5,200,000 in all—contained only 3,747,677 hectares of grain lands, whereas the farms of more than 50 hectares—66,000 in round figures—contained 9,636,246 hectares. One and a quarter per cent. of the farms contained 2½ times more grain land than the other 98¾ per cent. put together.

And yet the picture presented by these statistics falls by far short of the reality. It has not been ascertained among how many owners these 5,276,344 farms are divided. The number of owners is far smaller than that of the farms themselves: many are the owners of dozens of farms: it is in the instance of large farms, in particular, that many are held by one proprietor. A knowledge of the concentration of land is of the highest socio-political importance, yet on this point the agricultural statistics of 1882 leave us greatly in the lurch. A few facts are, nevertheless, ascertained from other sources, and they give an approximate picture of the reality. The percentages of large landed property—over 100 hectares—to the aggregate agricultural property was as follows:—

According to the memorial of the Prussian Minister of Agriculture, published in the bulletin of the Prussian Bureau of Statistics, the number of middle class farms sank, from 354,610 with 35,260,084 acres, in 1816, to 344,737 with 33,498,433 acres, in 1859. The number of these farms had, accordingly, decreased within that period by 9,873, and peasant property had been wiped out to the volume of 1,711,641 acres. The inquiry extended only to the provinces of Prussia, Posen (from 1823 on), Pomerania, exclusive of Stralsund; Brandenburg, Saxony, Silesia, and Westphalia.

What disappears as peasant property usually goes into large estates. In 1885, in the province of Pomerania, 62 proprietors held 118 estates; in 1891, however, the same number of proprietors held 203 estates with an area of 147,139 hectares. Altogether, there were in the province of Pomerania, in 1891, 1,353 noble and bourgeois landlords, owning 2,258 estates with 1,247,201 hectares.[172] The estates averaged 551 hectares in size.

Our eastern provinces give this table of landlords for the year 1888:—

We see that we here have to do with owners of latifundia of first rank; and a portion of these gentlemen own also large estates in Southern Germany and Austria.

According to Conrad,[173] there were in the year 1888, in East Prussia, 547 entails, of which 153 were instituted before the beginning of the nineteenth century. Entailed land is property that an heir can neither mortgage, divide nor alienate. The owner may go into bankruptcy through a dissolute life, but the entail and the income that flows therefrom remain unseizable. These entails, which only the very rich can institute, are steadily increasing in number since the last decades. The 547 entails in existence in the eastern provinces of Prussia in 1888, held by 529 persons, 20 of whom were bourgeois, embraced 1,408,860 hectares, or 2,454 hectares on an average. According to the statistical figures, submitted in the spring of 1894 by the Prussian Minister of Agriculture to the Agrarian Commission, the entails of Prussia embraced at that time 1,833,754 hectares with a net income of 22,992,000 marks. Estimating the holders of entails at 550, each has an unseizable income of 41,800 marks. Assuming, however, that these entails are concentrated in one province, it would mean that the whole province of Schleswig-Holstein, with an area of 1,890,000 hectares, belonged to 550 owners. In 1888 there were in the eastern provinces of Prussia 154 persons—among them 15 ruling Princes (the Kings of Prussia, Saxony, etc.); 89 Dukes, other Princes and Counts; 40 noblemen and 10 bourgeois—who alone owned 1,830 estates aggregating 1,768,648 hectares of land. Probably, the property of these persons has in the meantime increased considerably, seeing that a good portion of the net incomes from these estates is expended in acquiring new ones. The nobility of the first and second rank are the principal elements engaged in this gigantic concentration of landed property; but they are closely followed by the aristocracy of finance, who, with increasing predilection, invest their wealth in land, consisting mainly in magnificent woods, stocked with roe, deer and wild boar, that the owners may gratify their passion for the hunt. A large number of the baronial manors consist of the estates of dispossessed peasants, who were driven from their homes and reduced to day laborers. According to Neumann, in the provinces of East and West Prussia alone, there were from twelve to thirteen thousand small holdings appropriated in that way between 1825 to 1859. This process of dispossessing, proletarianizing the country population by the capitalist landlords, has the laying waste of the land as a natural consequence. The population emigrates, or moves to the cities and industrial centers. Woods and meadows gain upon cultivated lands, the remaining territories are operated with machinery, that render human labor superfluous, or that need such only for short periods during the plowing and sowing seasons, or when the crops are gathered. The rapidly increasing number of movable steam engines, already mentioned, consists mainly of engines employed in the cultivation of the land. The decrease of the rural population, resulting upon these and other causes of secondary nature, is sharply expressed in the statistics on population. Within the eight old provinces of Prussia, the proportion between the rural and the city population revealed, between 1867 and 1890, the following progression:—

The rapidity is obvious with which the city is surpassing the country population. But the situation is still more unfavorable to the country if the fact is considered that 148 communities, with from 5,000 to 40,000 inhabitants, and aggregating a population of 1,281,000 strong, are included in the rural but really belong to the industrial districts. They are essentially proletarian villages, located near large cities. Furthermore, 647 communities, with from 2,000 to 5,000 inhabitants, and aggregating a population of 1,884,000, are likewise included in the rural, while, to a perceptible degree, they belong to the industrial districts.

Similar conditions exist in Saxony and Southern Germany. In Baden and Wurtemberg also the population of many districts is on the decline. The small farmer can no longer hold his head above water; to thousands upon thousands of them the fate of a factory hand is inevitable; they enter the field of industry; and, with the help of their families, they cultivate during leisure hours the plot of land that may still be theirs. At the same time the large landlord's hunger for land knows no bounds; his appetite increases the more peasant lands he devours.

As in Germany so are things developing in neighboring Austria, where large landed property has long ruled almost unchecked. The difference there is that the Catholic Church shares the land with the nobility and the bourgeoisie. The process of smoking-out the farmer is in full swing in Austria. All manner of efforts are put forth in order to push the peasants and mountaineers of Tyrol, Salzburg, Steiermark, Upper and Lower Austria, etc., off their inherited patrimony and to drive them to relinquish their property. The spectacle, once presented to the world by England and Scotland, is now on the boards of the most beautiful and charming regions of Austria. Enormous tracts of land are bought in lump by rich men, and what cannot be bought outright is leased. Access to the valleys, manors, hamlets and even houses is thus barred by these new masters, and stubborn owners of separate small holdings are driven by all manner of chicaneries to dispose of their property at any price to these wealthy owners of the woodlands. Old farmlands, on which numerous generations have been supported for thousands of years, are being transformed into wilderness, in which the roe and the deer house, while the mountains, that the noble or bourgeois capitalist calls his own, become the abode of large herds of chamois. Whole communities are pauperized, the turning of their cattle upon the Alpine pastures being made impossible to them, or their right to do so being even disputed. And who is it that thus raises his hand against the peasant's property and independence? Princes, noblemen and rich bourgeois. Side by side with Rothschild and Baron Mayer-Melnhof are found the Dukes of Koburg and Meiningen, the Princes of Hohenlohe, the Prince of Lichtenstein, the Duke of Braganza, Prince Rosenberg, Prince Pless, the Counts of Schoenfeld, Festetics, Schafgotsca, Trautmannsdorff, the hunting association of the Count of Karolysche, the hunting association of Baron Gustaedtsche, the noble hunting association of Bluehnbacher, etc.

Large landed property is everywhere on the increase in Austria. The number of large landlords rose 9.5 per cent. from 1873 to 1891, and that means a considerable decrease of small holders: land cannot be increased.

In Lower Austria, of a total area embracing 3,544,596 yokes, 521,603 were taken up by large estates (247 owners), and 94,882 yokes by the Church. Nine families alone owned, in the middle of the eighties, 157,000 yokes, among these owners was the Count of Hoyos, with 54,000 yokes. The area of Moravia is 2,222,190 hectares. Of these, the Church held 78,496, 3.53 per cent.; 145 private persons held 525,632, and one of these alone held 107,247 hectares. Of Austrian Silesia's area of 514,085 hectares, the Church owned 50,845, or 9.87 per cent.; 36 landlords owned 134,226, or 26.07 per cent. The area of Bohemia is 5,196,700 hectares: of these the clergy owned 103,459 hectares; 362 private persons owned 1,448,638. This number is distributed among Prince Colloredo-Mansfeld with 58,239 hectares; Prince Fuerstenberg with 39,814; Imperial Duke Waldstein with 37,989; Prince Lichtenstein with 37,937; the Count of Czerin with 32,277; the Count of Clam-Gallas with 31,691; Emperor Franz Joseph with 28,800; the Count von Harrach with 28,047; Prince von Lobkowitz with 27,684; Imperial Count Kinsky with 26,265; the Count of Buquoy with 25,645; the Prince of Thurn and Taxis with 24,777; Prince Schwarzenberg with 24,037; Prince Metternich-Winneburg with 20,002; Prince Auersperg with 19,960; Prince Windischgraetz with 19,920 hectares, etc.[174]

The absorption by the large landlords of the small holdings in land frequently proceeds in "alarming manner." For instance, in the judicial district of Aflenz, community of St. Ilgen, an Alpine hill of over 5,000 yokes, with pasture ground for 300 head of cattle, and a contiguous peasant estate of 700 yokes, was all converted into a hunting ground. The same thing happened with Hoellaep, located in the community of Seewiesen, which had pasture land for 200 head of cattle. In the same judicial district of Aflenz, 47 other pieces of land, holding 840 head of cattle, were gradually absorbed and turned into hunting grounds. Similar doings are reported from all parts of the Alps. In Steiermark, a number of peasants find it more profitable to sell the hay to the lordly hunters as feed for the game in winter, than give it to their own cattle. In the neighborhood of Muerzzuschlag, some peasants no longer keep cattle, but sell all the feed for the support of the game.

In the judicial district of Schwarz, 7, and in the judicial district of Zell, 16 Alpine hills, formerly used for pasture, were "cashiered" by the new landlords and converted into hunting grounds. The whole region of the Karwendel mountain has been closed to cattle. It is generally the high nobility of Austria and Germany, together with rich bourgeois upstarts, who bought up Alpine stretches of land of 70,000 yokes and more at a clip and had them arranged for hunting parks. Whole villages, hundreds upon hundreds of holdings are thus wiped out of existence; the inhabitants are crowded off; and in the place of human beings, together with cattle meet for their sustenance, roes, deer and chamois put in their appearance. Oddest of all, more than one of the men, who thus lay whole provinces waste, is seen rising in the parliaments and declaiming on the "distress of landed property," and abuses his power to secure the protection of Government in the shape of duties on corn, wood and meat, and premiums on brandy and sugar,—all at the expense of the propertyless masses.

According to the census of the eighties, there were 8,547,285 farms in France; 2,993,450 farm owners had an average annual income of 300 francs, the aggregate income of these being 22.5 per cent. of the total income from farms; 1,095,850 farm owners had an average annual income of 1,730 francs, the aggregate income of these being 47 per cent. of the total income from farms; 65,525 large landlords, owning 109,285 farms, drew 25.4 per cent. of the total agricultural revenues:—their possessions embraced more than one-half of the agricultural lands of France.

Large agricultural property is becoming the standard in all countries of civilization, and, in virtue of its political influence, it sways legislation without regard to the welfare of the commonwealth. Nevertheless, the tenure of agricultural land and its cultivation is of high importance to social development. Upon land and its productivity depends first of all the population and its subsistence. Land can not be multiplied at will, hence the question is of all the greater magnitude to everyone how the land is cultivated and exploited. Germany, whose population increases yearly by from 5,600,000 heads, needs a large supply of breadstuffs and meat, if the prices of the principal necessaries of life shall remain within the reach of the people.

At this point an important antagonism arises between the industrial and the agricultural population. The industrial population, being independent of agriculture, has a vital interest in cheap food: the degree in which they are to thrive both as men and as workers depends upon that. Every rise in the price of food leads, either to further adulterations, or to a decline of exports, and thereby of wages as a consequence of increased difficulties of competition. The question is otherwise with the cultivator of the soil. As in the instance of the industrial producer, the farmer is bent upon making the largest gains possible out of his trade, whatever line that may be in. If the importation of corn and meat reduces the high prices for these articles and thereby lowers his profits, then he gives up raising corn and devotes his soil to some other product that may bring larger returns: he cultivates sugar-beet for the production of sugar, potatoes and grain for distilleries, instead of wheat and rye for bread. He devotes the most fertile tracts to tobacco instead of vegetables. In the same way, thousands of hectares are used as horse pastures because horses for soldiers and other purposes of war fetch good prices. On the other hand, extensive forests, that can be made fertile, are kept at present for the enjoyment of the hunting lords, and this often happens in neighborhoods where the dismantling of a few hectares of woodland and their conversion to agricultural purposes could be undertaken without thereby injuriously affecting the humidity of the neighborhood.

Upon this particular point, forestry to-day denies the influence of woodlands upon moisture. Woods should be allowed in large masses only at such places where the nature of the soil permits no other form of cultivation, or where the purpose is to furnish mountain regions with a profitable vegetation, or with a check to the rapid running down of water in order to prevent freshets and the washing away of the land. From this point of view, thousands of square kilometers of fertile land could be reclaimed in Germany for agriculture. But such an alteration runs counter as well to the interests of the hierarchy of office-holders—foresters—as to the private and hunting interests of the large landlords, who are not inclined to forfeit their hunting grounds and pleasures of the chase.

To what extent the process of rendering "hands" superfluous is progressing in agriculture and in the industries therewith connected has been shown in the palpable depopulation of the rural districts of Germany. It may, furthermore, be specified that in the period between 1885 and 1890, the decrease of the rural population in 74 districts east of the Elbe was above 2 per cent.; in 44 of these 74 districts it was even above 3 per cent. In western Prussia, a decrease was established of over 2 per cent. in 16 districts, in two of which the decrease exceeded 3 per cent. Especially high was the percentage of decrease in those neighborhoods where large landlords figure as special dispensations of Providence. In Wurtemberg, during the period between 1839 and 1885, the population of 22 peasant districts declined from 29,907 heads to 19,213,—not less than 35.7 per cent. In East and West Prignitz, the rural population declined during the period of 1868-1885 from 100,000 heads to 85,000,—15 per cent.

The decrease of the rural working population is marked also in England where, as well known, latifundia property reigns supreme. The progression in the decrease of agricultural workers was there as follows:—

Since then the decrease has proceeded further. According to Dr. B. J. Brock, in the year 1885 there was the following yield per acre in bushels:—

The difference in productivity between Great Britain and the other countries is, we see, considerable, and it is attained through a more extensive operation of the soil. In Hungary also the number of persons engaged in agriculture has decreased considerably:—

a decrease of 748,457, or more than 17 per cent. in ten years. The agricultural lands passed into the hands of large magnates and capitalists, who employed machines instead of human workers, and thus rendered the latter "superfluous." These phenomena manifest themselves everywhere in agriculture,—just as in large industrial production. The productivity of labor increases, and in the same measure a portion of the working class is promoted to the sidewalk.

As a matter of course, this process has its evil consequences for woman also. Her prospects of being a proprietor and housewife decline, and the prospects increase of her becoming a servant, a cheap hand for the large landlord. As a sexual being she is more exposed even than in the city to the illicit wishes and cravings of the master or his lieutenants. More so than in industry, on the land proprietary rights in the labor-power frequently expand to proprietary rights over the whole person. Thus, in the very midst of "Christian" Europe a quasi Turkish harem system has developed. In the country, woman is isolated to a higher degree than in the city. The magistrate or a close friend of his is her employer: newspapers and a public opinion, to which she otherwise might look for protection, there are none: furthermore, male labor itself is generally in a disgraceful state of dependence. But "the heavens are away up, and the Tsar is away off."

The census of occupation of 1882 established that, out of 5,273,344 farms, only 391,746, or 7½ per cent., employ machinery. Out of the 24,999 large farms, however, containing over 100 hectares of land, machinery was in use on 20,558, or 82¼ per cent. Naturally, it is the larger farms only that can utilize machinery. The application of machinery on a large surface, all of one product, engages labor only a comparatively short time, the number of male and female hands, absolutely needed on the place and for tending the cattle, is reduced, and after the field work is done, the day laborers are discharged. Thus with us, just as in England and in a still higher degree in the United States, a rural proletariat of grave aspect springs up. If, in view of the shortness of the season, these workingmen demand correspondingly high wages when they are needed, their impudence is denounced; if, upon their discharge, they roam about in hunger and idleness, they are called vagabonds, are abused, and not infrequently dogs are set upon them to chase them from the yards as "tramps," unwilling to work, and they are handed over to the constabulary for the workhouse. A pretty social "order."

Capitalist exploitation of agriculture leads in all directions to capitalist conditions. One set of our farmers, for instance, has for years made enormous profits out of beet-root and the production of sugar therewith connected. Our system of taxation favored the exportation of sugar, and it was so framed that the tax on beets yielded but an infinitesimal revenue to the treasury of the Empire, the premium on the exportation of sugar being large enough to almost swallow the tax.

The rebate allowed the sugar manufacturers per double quintal was actually higher than the tax paid by them on beets; and this premium enabled them to sell large quantities of sugar at the expense of the domestic tax-payers, and to extend ever more the cultivation of the sugar-beet. The profit that accrued from this system of taxation to about 400 sugar factories was estimated at over 30 million marks for 1889-1890: on an average 78,000 marks per factory. Several hundreds of thousands of hectares of land, previously devoted to raising grain, were turned into beet-root fields; factories upon factories were started, and are still being started; the inevitable consequence is an eventual crash. The large returns yielded by the beet-root cultivation affected favorably the price of land. It rose. The result was the buying up of the small farms, whose owners, seduced by the high prices, allowed themselves to be inveigled into selling. While the land was thus being used for industrial speculation, the raising of potatoes and grain was being confined to narrower fields, hence the increasing need of importation of food from abroad. The demand exceeds the supply. Thereupon, the large supply of foreign farm products and their cheaper transportation from Russia, the Danubian Principalities, North and South America, India, etc., finally leads to prices on which the domestic farmers—weighed down with mortgages and taxes, and hampered by the smallness of their farms, and their often faultily organized and deficiently conducted farming—can no longer exist. High duties are then placed upon importations; but these duties accrue only to the large farmer; the small fellow profits little by them, or none at all; and they become heavy burdens to the non-agricultural population. The advantage of the few becomes the injury of the many; small farming retrogresses; for it there is no balm in Gilead. That the condition of the small peasants in the tariff areas of Germany has been steadily deteriorating, will be generally admitted. The advantages to the large farmer from high duties, prohibitions of importations and measures of exclusion enable him all the more easily to buy out the small holder. The large number of those who do not produce in meat and bread what they consume themselves—and a glance at the statistics of occupation and division of the soil shows that these are by far the larger majority of the farmers—even suffers a direct injury from the increased prices resulting upon higher tariffs and indirect taxes. An unfavorable crop, that lowers still more the returns from the farm, not only aggravates the pressure, but also increases the number of the agriculturists who are compelled to become purchasers of farm products themselves. Tariffs and indirect taxes can not improve the economic condition of the majority of the farmers: he who has little or nothing to sell, what, to him, does the tariff boot, be it never so high! The incumbrance of the small farmer and his final ruin are thereby promoted rather than checked.

For Baden—overwhelmingly a State of small farms—the increase of mortgage indebtedness during the period of 1884-1894 is estimated at 140 to 150 million marks. The mortgage indebtedness of the Bern peasants aggregated in round figures 200 million francs in 1860; in 1890 it aggregated 500 million francs. According to a report of the Bohemian representative Gustave Eim, made to his constituents in 1893, the indebtedness that weighed upon the farms of Bohemia stood as follows:—

We see that inside of that period the burden of indebtedness increased 14.13 per cent.—that of small holdings 13.29 per cent., while that of the large holdings increased only 3.77 per cent. The bulk of the increased indebtedness fell to the share of middle class property.

How the cultivator of the soil operates his farm is—under the aegis of St. Private Property—his own business. His private interest decides. What cares he about the commonwealth and its well-being? He has to look out for himself: so, then, stand aside! Does not the industrialist proceed on that plan? He produces obscene pictures, turns out immoral books, sets up factories for adulterating food. These and many other occupations are harmful to society: they undermine morality and incite corruption. What does that matter! It brings in money, even more money than moral pictures, scientific books, and honest dealing in unadulterated food. The industrialist, greedy after profits, needs to concern himself only about escaping the too sharp eye of the police; he can quietly pursue his shameful trade, assured that the money he will thereby rake in will earn for him the envy and esteem of society.

The Mammon character of our age is best typified by the Exchange and its doings. Land and industrial products; means of transportation; meteorologic and political conditions; scarcity and abundance; mass-misery and accidents; public debts, inventions and discoveries; the health, sickness and death of influential persons; war and rumors of war, often started for the express purpose;—all this and much more is made objects of speculation, for exploitation and mutual cheating. The matadors of capital attain decided influence upon society, and, favored by the powerful means at their disposal and their connections, they amass enormous fortunes. Cabinet ministers and whole Governments become puppets in their hands, compelled to act according as matadors of the Exchange pull the wires behind the scenes. Not the State has the Exchange, but the Exchange has the State in its power. Will he, nill he, a Minister is often forced to water the upas tree, which he might prefer to tear up by the roots, but that he now must aid in growing.

All these facts, that, seeing the evils gain by the day in magnitude, daily force themselves with increasing importunity upon the consideration of everyone, demand speedy and radical help. But modern society stands bewildered before all these phenomena, just as certain animals are said to stand before a mountain;[175] it turns like a horse in the treadmill, constantly in a circle,—lost, helpless, the picture of distress and stupidity. Those who would bring help are yet too weak; those who should bring help still lack the necessary understanding; those who could bring help will not, they rely upon force; at best, they think with Madame Pompadour "apres nous le deluge" (after us the deluge). But how if the deluge were to come before their departure from life?

The flood rises and is washing out the foundations upon which our State and Social structure rests. All feel that the ground shakes, and that only the strongest props can now stead. But these demand great sacrifices on the part of the ruling classes. There is the rub. Every proposition injurious to the material interests of the ruling classes, and that threatens their privileged position, is bitterly opposed and branded as a scheme looking to the overthrow of the modern political and social order. Neither is the sick world to be cured without any danger to the privileges and immunities of the ruling classes, nor without their final abolition by the abolition of the classes themselves.

"The struggle for the emancipation of the working class is no struggle for privileges, but a struggle for equal rights and equal duties; it is a struggle for the abolition of all privileges"—thus runs the programme of the Socialist Movement. It follows that half-measures and small concessions are fruitless.

Until now, the ruling classes regard their privileged position as quite natural and normal, as to the justice of which no doubt may be entertained. It is a matter of course, therefore, that they should object and resolutely oppose every attempt to shake their prerogatives. Even propositions and laws, that affect neither the fundamental principles of the existing social order nor the privileged position of the ruling classes, throw them into great commotion the moment their purses are or might be touched. Mountains of paper are filed in the parliaments full of speeches and printed matter, until the heaving mountains bring forth a ridiculous mouse. The simplest and most obvious questions regarding the protection of Labor are met by them with such a resistance as though the existence of society hinged on such concessions. After endless struggles a few concessions are finally wrung from them, and then they act as if they had sacrificed a large part of their fortunes. The same stubborn resistance do they display if the point is the formal recognition of the equality of the oppressed classes, to allow these, for instance, to have an equal voice with them in wage and other labor agreements.

This resistance to the simplest matters and the most obvious demands confirms the old principle founded in experience, that no ruling class can be convinced by reasoning, until the force of circumstances drives them to sense and to submission. This force of circumstances lies in the development of society, and in the increasing intelligence awakened by this very development among the oppressed. The class-antagonism—the sketch of our social conditions has pointed them out—grow more pronounced, visible and sensible. Along therewith increases the understanding of the untenableness of the existing order among the oppressed and exploited classes; their indignation mounts higher, and, as a result thereof, also the imperious demand for a change and for improved conditions. By penetrating ever wider circles, such understanding of the situation finally conquers the vast majority of society, most directly interested in the change. In the same measure, however, as the popular understanding increases regarding the untenableness of the existing order and the necessity of its radical change, the power of resistance decreases on the part of the ruling classes, whose power rests upon ignorance and lack of intelligence on the part of the oppressed and exploited. This cross effect is evident; hence, everything that promotes it must be welcome. The progress made by large capitalization, on one side, is amply compensated, on the other, by the increasing perception by the proletariat of the contradiction in which the social order stands with the well-being of the enormous majority. The dissolution and abolition of the social antagonisms may cost extraordinary pains, sacrifices and efforts, it may depend upon factors that lie beyond the influence of the individual, or even of a class. Nevertheless, the solution is reached the moment these antagonisms have reached their acme,—a point towards which they are rushing.

The measures to be adopted at the various phases of development depend upon the then conditions. It is impossible to foretell what measures may become necessary under given circumstances. No Government, no Minister, be he ever so powerful, can foresee what circumstances may require in the next few years. All the less is it possible to foretell measures, that will be influenced by circumstance, which elude all accurate calculation. The question of "measures" is a question of tactics in battle. These depend upon the enemy and upon the means at his disposal, and at mine. A measure that would be excellent to-day, may be harmful to-morrow, the circumstances that yesterday justified its application having changed to-day. With the goal in view, the means to attain it by depend upon time and tide; imperative is but the seizing of the most effective and thorough going ones that time and tide may allow. In forecasting the future, hypotheses alone are available: things must be supposed to exist that have not yet set in.

Accordingly, we suppose the arrival of a day when all the evils described will have reached such maturity that they will have become oppressingly sensible to the feeling as to the sight of the vast majority, to the extent of being no longer bearable; whereupon a general irresistible desire for a radical change will seize society, and then the quickest will be regarded the most effective remedy.

All social evils, without exception, have their source in that social order of things, which, as has been shown, rests upon capitalism, upon the capitalist system of production. Under this system, the capitalist class is the possessor of all instruments of labor—land, mines, quarries, raw material, tools, machines, means of transportation and communication—and it exploits and oppresses the vast majority of the people. The result of such abuses is an increased precariousness of livelihood, increased misery, oppression and degradation of the exploited classes. It is, consequently, necessary to convert this capitalist property into social property by means of a general expropriation. Production for sale must be converted into socialist production, conducted for and by Society. Production on a large scale, and the increasing fertility of social labor,—until now a source of misery and of oppression for the exploited classes—must be turned into a source of highest well-being and of full and harmonious culture.