You cannot prevent Mr. Nadeau from saying to the legislators: "You cannot refuse to do for the suffering cla.s.ses that which you have done for the privileged cla.s.ses."

You cannot even prevent the leader of your orchestra, Mr. Mimerel, from saying to the legislators: "I demand twenty-five thousand subsidies for the workingmen's savings banks;" and supporting his motion in this manner:

"Is this the first example of the kind that our legislation offers?

Would you establish the system that the State should encourage everything, open at its expense courses of scientific lectures, subsidize the fine arts, pension the theatre, give to the cla.s.ses already favored by fortune the benefits of superior education, the most varied amus.e.m.e.nts, the enjoyment of the arts, and repose for old age; give all this to those who know nothing of privations, and compel those who have no share in these benefits to bear their part of the burden, while refusing them everything, even the necessaries of life?

"Gentlemen, our French society, our customs, our laws, are so made that the intervention of the State, however much it may be regretted, is seen everywhere, and nothing seems to be stable or durable if the hand of the State is not manifest in it. It is the State that makes the Sevres porcelain, and the Gobelin tapestry. It is the State that periodically gives expositions of the works of our artists, and of the products of our manufacturers; it is the State which recompenses those who raise its cattle and breed its fish. All this costs a great deal. It is a tax to which every one is obliged to contribute.

Everybody, do you understand? And what direct benefit do the people derive from it? Of what direct benefit to the people are your porcelains and tapestries, and your expositions? This general principle of resisting what you call a state of enthusiasm we can understand, although you yesterday voted a bounty for linens; we can understand it on the condition of consulting the present crisis, and especially on the condition of your proving your impartiality. If it is true that, by the means I have indicated, the State thus far seems to have more directly benefited the well-to-do cla.s.ses than those who are poorer, it is necessary that this appearance should be removed.

Shall it be done by closing the manufactories of tapestry and stopping the exhibitions? a.s.suredly not; _but by giving the poor a direct share in this distribution of benefits_."

In this long catalogue of favors granted to some at the expense of all, one will remark the extreme prudence with which Mr. Mimerel has left the tariff favors out of sight, although they are the most explicit manifestations of legal spoliation. All the orators who supported or opposed him have taken upon themselves the same reserve. It is very shrewd! Possibly they hope, _by giving the poor a direct partic.i.p.ation in this distribution of benefits_, to save this great iniquity by which they profit, but of which they do not whisper.

They deceive themselves. Do they suppose that after having realized a partial spoliation by the establishment of customs duties, other cla.s.ses, by the establishment of other inst.i.tutions, will not attempt to realize universal spoliation?

I know very well you always have a sophism ready. You say: "The favors which the law grants us are not given to the _manufacturer_, but to _manufactures_. The profits which it enables us to receive at the expense of the consumers are merely a trust placed in our hands. They enrich us, it is true, but our wealth places us in a position to expend more, to extend our establishments, and falls like refreshing dew upon the laboring cla.s.ses."

Such is your language, and what I most lament is the circ.u.mstance that your miserable sophisms have so perverted public opinion that they are appealed to in support of all forms of legalized spoliation. The suffering cla.s.ses also say. "Let us by act of the Legislature help ourselves to the goods of others. We shall be in easier circ.u.mstances as the result of it; we shall buy more wheat, more meat, more cloth, and more iron; and that which we receive from the public taxes will return in a beneficent shower to the capitalists and landed proprietors."

But, as I have already said, I will not to-day discuss the economical effects of legal spoliation. Whenever the protectionists desire, they will find me ready to examine the _sophisms of the ricochets_, which, indeed, may be invoked in support of all species of robbery and fraud.

We will confine ourselves to the political and moral effects of exchange legally deprived of liberty.

I have said: The time has come to know what the law is, and what it ought to be.

If you make the law for all citizens a palladium of liberty and of property; if it is only the organization of the individual law of self-defense, you will establish, upon the foundation of justice, a government rational, simple, economical, comprehended by all, loved by all, useful to all, supported by all, entrusted with a responsibility perfectly defined and carefully restricted, and endowed with imperishable strength. If, on the other hand, in the interests of individuals or of cla.s.ses, you make the law an instrument of robbery, every one will wish to make laws, and to make them to his own advantage.

There will be a riotous crowd at the doors of the legislative halls, there will be a bitter conflict within; minds will be in anarchy, morals will be shipwrecked; there will be violence in party organs, heated elections, accusations, recriminations, jealousies, inextinguishable hates, the public forces placed at the service of rapacity instead of repressing it, the ability to distinguish the true from the false effaced from all minds, as the notion of justice and injustice will be obliterated from all consciences, the government responsible for everything and bending under the burden of its responsibilities, political convulsions, revolutions without end, ruins over which all forms of socialism and communism attempt to establish themselves; these are the evils which must necessarily flow from the perversion of law.

Such, consequently, gentlemen, are the evils for which you have prepared the way by making use of the law to destroy freedom of exchange; that is to say, to abolish the right of property. Do not declaim against socialism; you establish it. Do not cry out against communism; you create it. And now you ask us Economists to make you a theory which will justify you! _Morbleu!_ make it yourselves.

PART IV.

CAPITAL AND INTEREST.

My object in this treatise is to examine into the real nature of the Interest of Capital, for the purpose of proving that it is lawful, and explaining why it should be perpetual. This may appear singular, and yet, I confess, I am more afraid of being too plain than too obscure. I am afraid I may weary the reader by a series of mere truisms. But it is no easy matter to avoid this danger, when the facts, with which we have to deal, are known to every one by personal, familiar, and daily experience.

But, then, you will say, "What is the use of this treatise? Why explain what everybody knows?"

But, although this problem appears at first sight so very simple, there is more in it than you might suppose. I shall endeavor to prove this by an example. Mondor lends an instrument of labor to-day, which will be entirely destroyed in a week, yet the capital will not produce the less interest to Mondor or his heirs, through all eternity. Reader, can you honestly say that you understand the reason of this?

It would be a waste of time to seek any satisfactory explanation from the writings of economists. They have not thrown much light upon the reasons of the existence of interest. For this they are not to be blamed; for at the time they wrote, its lawfulness was not called in question. Now, however, times are altered; the case is different. Men, who consider themselves to be in advance of their age, have organized an active crusade against capital and interest; it is the productiveness of capital which they are attacking; not certain abuses in the administration of it, but the principle itself.

A journal has been established to serve as a vehicle for this crusade.

It is conducted by M. Proudhon, and has, it is said, an immense circulation. The first number of this periodical contains the electoral manifesto of the _people_. Here we read, "The productiveness of capital, which is condemned by Christianity under the name of usury, is the true cause of misery, the true principle of dest.i.tution, the eternal obstacle to the establishment of the Republic."

Another journal, _La Ruche Populaire_, after having said some excellent things on labor, adds, "But, above all, labor ought to be free; that is, it ought to be organized in such a manner, _that money lenders and patrons, or masters, should not be paid_ for this liberty of labor, this right of labor, which is raised to so high a price by the trafficers of men." The only thought that I notice here, is that expressed by the words in italics, which imply a denial of the right to interest. The remainder of the article explains it.

It is thus that the democratic Socialist, Th.o.r.e, expresses himself:

"The revolution will always have to be recommenced, so long as we occupy ourselves with consequences only, without having the logic or the courage to attack the principle itself. This principle is capital, false property, interest, and usury, which by the old _regime_, is made to weigh upon labor.

"Ever since the aristocrats invented the incredible fiction, _that capital possesses the power of reproducing itself_, the workers have been at the mercy of the idle.

"At the end of a year, will you find an additional crown in a bag of one hundred shillings? At the end of fourteen years, will your shillings have doubled in your bag?

"Will a work of industry or of skill produce another, at the end of fourteen years?

"Let us begin, then, by demolishing this fatal fiction."

I have quoted the above, merely for the sake of establishing the fact, that many persons consider the productiveness of capital a false, a fatal, and an iniquitous principle. But quotations are superfluous; it is well known that the people attribute their sufferings to what they call _the trafficing in man by man_. In fact, the phrase _tyranny of capital_ has become proverbial.

I believe there is not a man in the world, who is aware of the whole importance of this question:

"Is the interest of capital natural, just, and lawful, and as useful to the payer as to the receiver?"

You answer, no; I answer, yes. Then we differ entirely; but it is of the utmost importance to discover which of us is in the right; otherwise we shall incur the danger of making a false solution of the question, a matter of opinion. If the error is on my side, however, the evil would not be so great. It must be inferred that I know nothing about the true interests of the ma.s.ses, or the march of human progress; and that all my arguments are but as so many grains of sand, by which the car of the revolution will certainly not be arrested.

But if, on the contrary, MM. Proudhon and Th.o.r.e are deceiving themselves, it follows, that they are leading the people astray--that they are showing them the evil where it does not exist; and thus giving a false direction to their ideas, to their antipathies, to their dislikes, and to their attacks. It follows, that the misguided people are rushing into a horrible and absurd struggle, in which victory would be more fatal than defeat, since, according to this supposition, the result would be the realization of universal evils, the destruction of every means of emanc.i.p.ation, the consummation of its own misery.

This is just what M. Proudhon has acknowledged, with perfect good faith.

"The foundation stone," he told me, "of my system is the _gratuitousness of credit_. If I am mistaken in this, Socialism is a vain dream." I add, it is a dream, in which the people are tearing themselves to pieces.

Will it, therefore, be a cause for surprise, if, when they awake, they find themselves mangled and bleeding? Such a danger as this is enough to justify me fully, if, in the course of the discussion, I allow myself to be led into some trivialities and some prolixity.

CAPITAL AND INTEREST.

I address this treatise to the workmen of Paris, more especially to those who have enrolled themselves under the banner of Socialist democracy. I proceed to consider these two questions:

1st. Is it consistent with the nature of things, and with justice, that capital should produce interest?

2nd. Is it consistent with the nature of things, and with justice, that the interest of capital should be perpetual?

The working men of Paris will certainly acknowledge that a more important subject could not be discussed.

Since the world began, it has been allowed, at least in part, that capital ought to produce interest. But latterly it has been affirmed, that herein lies the very social error which is the cause of pauperism and inequality. It is, therefore, very essential to know now on what ground we stand.

For if levying interest from capital is a sin, the workers have a right to revolt against social order, as it exists; it is in vain to tell them that they ought to have recourse to legal and pacific means, it would be a hypocritical recommendation. When on the one side there is a strong man, poor, and a victim of robbery--on the other, a weak man, but rich, and a robber--it is singular enough, that we should say to the former, with a hope of persuading him, "Wait till your oppressor voluntarily renounces oppression, or till it shall cease of itself." This cannot be; and those who tell us that capital is, by nature, unproductive, ought to know that they are provoking a terrible and immediate struggle.

If, on the contrary, the interest of capital is natural, lawful, consistent with the general good, as favorable to the borrower as to the lender, the economists who deny it, the tribunes who traffic in this pretended social wound, are leading the workmen into a senseless and unjust struggle, which can have no other issue than the misfortune of all. In fact, they are arming labor against capital. So much the better, if these two powers are really antagonistic; and may the struggle soon be ended! But if they are in harmony, the struggle is the greatest evil which can be inflicted on society. You see, then, workmen, that there is not a more important question than this: "Is the interest of capital lawful or not?" In the former case, you must immediately renounce the struggle to which you are being urged; in the second, you must carry it on bravely, and to the end.

Productiveness of capital--perpetuity of interest. These are difficult questions. I must endeavor to make myself clear. And for that purpose I shall have recourse to example rather than to demonstration; or rather, I shall place the demonstration in the example. I begin by acknowledging, that, at first sight, it may appear strange that capital should pretend to a remuneration; and, above all, to a perpetual remuneration. You will say, "Here are two men. One of them works from morning till night, from one year's end to another; and if he consumes all which he has gained, even by superior energy, he remains poor. When Christmas comes, he is no forwarder than he was at the beginning of the year, and has no other prospect but to begin again. The other man does nothing, either with his hands or his head; or, at least, if he makes use of them at all, it is only for his own pleasure; it is allowable for him to do nothing, for he has an income. He does not work, yet he lives well; he has everything in abundance, delicate dishes, sumptuous furniture, elegant equipages; nay, he even consumes, daily, things which the workers have been obliged to produce by the sweat of their brow; for these things do not make themselves; and, as far as he is concerned, he has had no hand in their production. It is the workmen who have caused this corn to grow, polished this furniture, woven these carpets; it is our wives and daughters who have spun, cut out, sewed, and embroidered these stuffs. We work, then, for him and ourselves; for him first, and then for ourselves, if there is anything left. But here is something more striking still. If the former of these two men, the worker, consumes within the year any profit which may have been left him in that year, he is always at the point from which he started, and his destiny condemns him to move incessantly in a perpetual circle, and a monotony of exertion. Labor, then, is rewarded only once. But if the other, the 'gentleman,' consumes his yearly income in the year, he has, the year after, in those which follow, and through all eternity, an income always equal, inexhaustible, _perpetual_. Capital, then, is remunerated, not only once or twice, but an indefinite number of times! So that, at the end of a hundred years, a family, which has placed 20,000 francs, at five per cent., will have had 100,000 francs; and this will not prevent it from having 100,000 more, in the following century. In other words, for 20,000 francs, which represent its labor, it will have levied, in two centuries, a ten-fold value on the labor of others. In this social arrangement, is there not a monstrous evil to be reformed? And this is not all. If it should please this family to curtail its enjoyments a little--to spend, for example, only 900 francs, instead of 1,000--it may, without any labor, without any other trouble beyond that of investing 100 francs a year, increase its capital and its income in such rapid progression, that it will soon be in a position to consume as much as a hundred families of industrious workmen. Does not all this go to prove, that society itself has in its bosom a hideous cancer, which ought to be eradicated at the risk of some temporary suffering?"

These are, it appears to me, the sad and irritating reflections which must be excited in your minds by the active and superficial crusade which is being carried on against capital and interest. On the other hand, there are moments in which, I am convinced, doubts are awakened in your minds, and scruples in your conscience. You say to yourselves sometimes, "But to a.s.sert that capital ought not to produce interest, is to say that he who has created instruments of labor, or materials, or provisions of any kind, ought to yield them up without compensation. Is that just? And then, if it is so, who would lend these instruments, these materials, these provisions? who would take care of them? who even would create them? Every one would consume his proportion, and the human race would never advance a step. Capital would be no longer formed, since there would be no interest in forming it. It will become exceedingly scarce. A singular step toward gratuitous loans! A singular means of improving the condition of borrowers, to make it impossible for them to borrow at any price! What would become of labor itself? for there will be no money advanced, and not one single kind of labor can be mentioned, not even the chase, which can be pursued without money in hand. And, as for ourselves, what would become of us? What! we are not to be allowed to borrow, in order to work in the prime of life, nor to lend, that we may enjoy repose in its decline? The law will rob us of the prospect of laying by a little property, because it will prevent us from gaining any advantage from it. It will deprive us of all stimulus to save at the present time, and of all hope of repose for the future.

It is useless to exhaust ourselves with fatigue; we must abandon the idea of leaving our sons and daughters a little property, since modern science renders it useless, for we should become trafficers in men if we were to lend it on interest. Alas! the world which these persons would open before us as an imaginary good, is still more dreary and desolate than that which they condemn, for hope, at any rate, is not banished from the latter." Thus in all respects, and in every point of view, the question is a serious one. Let us hasten to arrive at a solution.