Whither it would drift nobody could say, but all feared the rocks.""Nevertheless," said Dr. Leete, "the set of the current was perfectly perceptible if you had but taken pains to observe it, and it was not toward the rocks, but toward a deeper channel.""We had a popular proverb," I replied, "that `hindsight is better than foresight,' the force of which I shall now, no doubt, appreciate more fully than ever. All I can say is, that the prospect was such when I went into that long sleep that I should not have been surprised had I looked down from your house-top to-day on a heap of charred and moss-grown ruins instead of this glorious city."Dr. Leete had listened to me with close attention and nodded thoughtfully as I finished speaking. "What you have said," he observed, "will be regarded as a most valuable vindication of Storiot, whose account of your era has been generally thought exaggerated in its picture of the gloom and confusion of men's minds. That a period of transition like that should be full of excitement and agitation was indeed to be looked for; but seeing how plain was the tendency of the forces in operation, it was natural to believe that hope rather than fear would have been the prevailing temper of the popular mind.""You have not yet told me what was the answer to the riddle which you found," I said. "I am impatient to know by what contradiction of natural sequence the peace and prosperity which you now seem to enjoy could have been the outcome of an era like my own.""Excuse me," replied my host, "but do you smoke?" It was not till our cigars were lighted and drawing well that he resumed. "Since you are in the humor to talk rather than to sleep, as I certainly am, perhaps I cannot do better than to try to give you enough idea of our modern industrial system to dissipate at least the impression that there is any mystery about the process of its evolution. The Bostonians of your day had the reputation of being great askers of questions, and I am going to show my descent by asking you one to begin with. What should you name as the most prominent feature of the labor troubles of your day?""Why, the strikes, of course," I replied.
"Exactly; but what made the strikes so formidable?""The great labor organizations."
"And what was the motive of these great organizations?""The workmen claimed they had to organize to get their rights from the big corporations," I replied.
"That is just it," said Dr. Leete; "the organization of labor and the strikes were an effect, merely, of the concentration of capital in greater masses than had ever been known before. Before this concentration began, while as yet commerce and industry were conducted by innumerable petty concerns with small capital, instead of a small number of great concerns with vast capital, the individual workman was relatively important and independent in his relations to the employer. Moreover, when a little capital or a new idea was enough to start a man in business for himself, workingmen were constantly becoming employers and there was no hard and fast line between the two classes. Labor unions were needless then, and general strikes out of the question. But when the era of small concerns with small capital was succeeded by that of the great aggregations of capital, all this was changed.
The individual laborer, who had been relatively important to the small employer, was reduced to insignificance and powerlessness over against the great corporation, while at the same time the way upward to the grade of employer was closed to him.
Self-defense drove him to union with his fellows.
"The records of the period show that the outcry against the concentration of capital was furious. Men believed that it threatened society with a form of tyranny more abhorrent than it had ever endured. They believed that the great corporations were preparing for them the yoke of a baser servitude than had ever been imposed on the race, servitude not to men but to soulless machines incapable of any motive but insatiable greed.
Looking back, we cannot wonder at their desperation, for certainly humanity was never confronted with a fate more sordid and hideous than would have been the era of corporate tyranny which they anticipated.
"Meanwhile, without being in the smallest degree checked by the clamor against it, the absorption of business by ever larger monopolies continued. In the United States there was not, after the beginning of the last quarter of the century, any opportunity whatever for individual enterprise in any important field of industry, unless backed by a great capital. During the last decade of the century, such small businesses as still remained were fast-failing survivals of a past epoch, or mere parasites on the great corporations, or else existed in fields too small to attract the great capitalists. Small businesses, as far as they still remained, were reduced to the condition of rats and mice, living in holes and corners, and counting on evading notice for the enjoyment of existence. The railroads had gone on combining till a few great syndicates controlled every rail in the land. In manufactories, every important staple was controlled by a syndicate.
These syndicates, pools, trusts, or whatever their name, fixed prices and crushed all competition except when combinations as vast as themselves arose. Then a struggle, resulting in a still greater consolidation, ensued. The great city bazar crushed it country rivals with branch stores, and in the city itself absorbed its smaller rivals till the business of a whole quarter was concentrated under one roof, with a hundred former proprietors of shops serving as clerks. Having no business of his own to put his money in, the small capitalist, at the same time that he took service under the corporation, found no other investment for his money but its stocks and bonds, thus becoming doubly dependent upon it.
