"Socialism or Smash. Socialism if the race has at last evolved the faculty of coordinating the functions of a society too crowded and complex to be worked any longer on the old haphazard private-property system. Unless we reorganize our society socialistically--humanly a most arduous and magnificent enterprise, economically a most ****** and sound one--Free Trade by itself will ruin England, and I will tell you exactly how.
When my father made his fortune we had the start of all other nations in the organization of our industry and in our access to iron and coal. Other nations bought our products for less than they must have spent to raise them at home, and yet for so much more than they cost us, that profits rolled in Atlantic waves upon our capitalists. When the workers, by their trades-unions, demanded a share of the luck in the form of advanced wages, it paid better to give them the little they dared to ask than to stop gold-gathering to fight and crush them. But now our customers have set up in their own countries improved copies of our industrial organization, and have discovered places where iron and coal are even handier than they are by this time in England. They produce for themselves, or buy elsewhere, what they formerly bought from us. Our profits are vanishing, our machinery is standing idle, our workmen are locked out. It pays now to stop the mills and fight and crush the unions when the men strike, no longer for an advance, but against a reduction. Now that these unions are beaten, helpless, and drifting to bankruptcy as the proportion of unemployed men in their ranks becomes greater, they are being petted and made much of by our class; an infallible sign that they are ****** no further progress in their duty of destroying us. The small capitalists are left stranded by the ebb; the big ones will follow the tide across the water, and rebuild their factories where steam power, water power, labor power, and transport are now cheaper than in England, where they used to be cheapest. The workers will emigrate in pursuit of the factory, but they will multiply faster than they emigrate, and be told that their own exorbitant demand for wages is driving capital abroad, and must continue to do so whilst there is a Chinaman or a Hindoo unemployed to underbid them. As the British factories are shut up, they will be replaced by villas; the manufacturing districts will become fashionable resorts for capitalists living on the interest of foreign investments; the farms and sheep runs will be cleared for deer forests. All products that can in the nature of things be manufactured elsewhere than where they are consumed will be imported in payment of deer-forest rents from foreign sportsmen, or of dividends due to shareholders resident in England, but holding shares in companies abroad, and these imports will not be paid for by ex ports, because rent and interest are not paid for at all--a fact which the Free Traders do not yet see, or at any rate do not mention, although it is the key to the whole mystery of their opponents. The cry for Protection will become wild, but no one will dare resort to a demonstrably absurd measure that must raise prices before it raises wages, and that has everywhere failed to benefit the worker. There will be no employment for anyone except in doing things that must be done on the spot, such as unpacking and distributing the imports, ministering to the proprietors as domestic servants, or by acting, preaching, paving, lighting, housebuilding, and the rest; and some of these, as the capitalist comes to regard ostentation as vulgar, and to enjoy a ******r life, will employ fewer and fewer people. A vast proletariat, beginning with a nucleus of those formerly employed in export trades, with their multiplying progeny, will be out of employment permanently. They will demand access to the land and machinery to produce for themselves. They will be refused. They will break a few windows and be dispersed with a warning to their leaders. They will burn a few houses and murder a policeman or two, and then an example will be made of the warned. They will revolt, and be shot down with machine-guns--emigrated--exterminated anyhow and everyhow; for the proprietary classes have no idea of any other means of dealing with the full claims of labor. You yourself, though you would give fifty pounds to Jansenius's emigration fund readily enough, would call for the police, the military, and the Riot Act, if the people came to Brandon Beeches and bade you turn out and work for your living with the rest. Well, the superfluous proletariat destroyed, there will remain a population of capitalists living on gratuitous imports and served by a disaffected retinue. One day the gratuitous imports will stop in consequence of the occurrence abroad of revolution and repudiation, fall in the rate of interest, purchase of industries by governments for lump sums, not reinvestable, or what not. Our capitalist community is then thrown on the remains of the last dividend, which it consumes long before it can rehabilitate its extinct machinery of production in order to support itself with its own hands. Horses, dogs, cats, rats, blackberries, mushrooms, and cannibalism only postpone--""Ha! ha! ha!" shouted Sir Charles. "On my honor, I thought you were serious at first, Trefusis. Come, confess, old chap; it's all a fad of yours. I half suspected you of being a bit of a crank." And he winked at Erskine.
