Part 12 (2/2)

But if Ricardo is comparatively silent on the subject, we fortunately possess a very ample discussion of it by one of his leading disciples, J. E. McCulloch. When Ricardo died, James Mill wrote to McCulloch, ”As you and I are his two and only genuine disciples, his memory must be a point of connection between us;” and it was on McCulloch that the mantle of the master descended. His ”Principles of Political Economy,” which may be said to be an exposition of the system of economics according to Ricardo, was for many years the princ.i.p.al textbook of the science, and will still be admitted to be the best and most complete statement of what, in the cant of the present day, is called orthodox political economy. McCulloch, indeed, is more than merely the expositor of that system; he is really one of its founders, the author of one of its most famous dogmas, at least in its current form, the now exploded doctrine of the Wages fund; and of all the adherents of this orthodox tradition, McCulloch is commonly considered the hardest and most narrow. There are economists who are supposed to show a native generous warmth which all the severities of their science are unable to quell. John Stuart Mill is known to have come under St. Simonian influences in his younger days, and to have been fond ever afterwards of calling himself a socialist; and Professor Sidgwick, in our own day, is often credited--and not unjustly--with a like breadth of heart, and in publis.h.i.+ng his views of Government interference, he gives them the name of ”Economic Socialism.”

But in selecting McCulloch, I select an economist the rigour of whose principles has never been suspected, and yet so striking is the uniformity of the English tradition on this subject, that in reality neither Mill nor Mr. Sidgwick professes a broader doctrine of social politics, or goes a step further, or more heartily on the road to socialism than that accredited champion of individualism, John Ramsay McCulloch.

McCulloch's ”Principles” contains--from the second edition in 1830 onward to the last author's edition in 1849--a special chapter on the limits of Government interference; and the chapter starts with an explicit repudiation of the doctrine of _laissez-faire_, which was then apparently only beginning to come into vogue in England.

”An idea,” says McCulloch, ”seems however to have been recently gaining ground that the duty of the Government with regard to the domestic policy of the country is almost entirely of a negative kind, and that it has merely to maintain the security of property and the freedom of industry. But its duty is by no means so simple and easily defined as those who support this opinion would have us to believe. It is certainly true that its interference with the pursuits of individuals has been, in very many instances, exerted in a wrong direction, and carried to a ruinous excess. Still, however, it is easy to see that we should fall into a very great error if we supposed that it might be entirely dispensed with. Freedom is not, as some appear to think, the end of government; the advancement of the public prosperity and happiness is its end; and freedom is valuable in so far only as it contributes to bring it about. In laying it down, for example, that individuals should be permitted, without let or hindrance, to engage in any business or profession they may prefer, the condition that it is not injurious to others is always understood. No one doubts the propriety of a Government interfering to suppress what is or might otherwise become a public nuisance; nor does any one doubt that it may advantageously interfere to give facilities to commerce by negotiating treaties with foreign powers, and by removing such obstacles as cannot be removed by individuals. But the interference of Government cannot be limited to cases of this sort.

However disinclined, it is obliged to interfere in an infinite variety of ways and for an infinite variety of purposes. It must, to notice only one or two of the _cla.s.ses_ of objects requiring its interference, decide as to the species of contract to which it will lend its sanction, and the means to be adopted to enforce true performance; it must decide in regard to the distribution of the property of those who die intestate, and the effect to be given to the directions in wills and testaments; and it must frequently engage itself, or authorize individuals or a.s.sociations to engage, in various sorts of undertakings deeply affecting the rights and interests of others and of society. The furnis.h.i.+ng of elementary instruction in the ordinary branches of education for all cla.s.ses of persons and the establishment of a compulsory provision for the support of the dest.i.tute poor are generally also included, and apparently with the greatest propriety, among the duties inc.u.mbent on administration” (p. 262).

He allows State owners.h.i.+p and State management of industrial works, wherever State owners.h.i.+p and management are more efficient for the purpose than private enterprise--in other words, where they are more economical--as in the cases of the coinage, roads, harbours, postal communication, etc. He would expropriate land for railway purposes, grant a monopoly to the railway company, and then subject it to Government control in the public interest; he would impose many sorts of restrictions on freedom of contract, freedom of industry, freedom of trade, freedom of property, and freedom of bequest; and, what is more important, he recognises clearly that with the growth of society fresh interferences of a serious character will be constantly called for, which may in some cases involve the application of entirely new principles, or throw on the Government work of an entirely new character.

For example, he is profoundly impressed with the dangers of the manufacturing system, which he saw growing and multiplying all around him, and so far from dreaming that the course of industry should remain uncontrolled, he even ventures, in a remarkable pa.s.sage, to express the doubt whether it may not ”in the end be found that it was unwise to allow the manufacturing system to gain so great an ascendancy as it has done in this country, and that measures should have been early adopted to check and moderate its growth” (p. 191). He admits that a decisive answer to this question could only be given by the economists of a future generation, after a longer experience of the system than was possible when he wrote, but he cannot conceal the gravest apprehension at the preponderance which manufactures were rapidly gaining in our industrial economy. And his reasons are worthy of attention. The first is the destruction of the old moral ties that knit masters and men together.

”But we doubt whether any country, how wealthy soever, should be looked upon as in a healthy, sound state, where the leading interest consists of a small number of great capitalists, and of vast numbers of workpeople in their employment, but unconnected with them by any ties of grat.i.tude, sympathy, or affection. This estrangement is occasioned by the great scale on which labour is now carried on in most businesses; and by the consequent impossibility of the masters becoming acquainted, even if they desired it, with the great bulk of their workpeople.... The kindlier feelings have no share in an intercourse of this sort; speaking generally, everything is regulated on both sides by the narrowest and most selfish views and considerations; a man and a machine being treated with about the same sympathy and regard” (p. 193).

The second reason is the suppression of the facilities of advancement enjoyed by labourers under the previous _regime_. ”Owing to the greater scale on which employments are now mostly carried on, workmen have less chance than formerly of advancing themselves or their families to any higher situation, or of exchanging the character of labourers for that of masters” (p. 188). For the majority of the working-cla.s.s to be thus, as he expresses it, ”condemned as it were to perpetual helotism,” is not conducive to the health of a nation. The third reason is the comparative instability of manufacturing business. It becomes a matter of the most serious concern for a State, ”when a very large proportion of the population has been, through their agency, rendered dependent on foreign demand, and on the caprices and mutations of fas.h.i.+on” (p. 192). That also is a state of things fraught with danger to the health of a community. McCulloch always treats political economy as if he defined it--and the definition would be better than his own--as the science of the working of industrial society in health and disease; and he always throws on the State a considerable responsibility in the business of social hygiene; going so far, we have seen in the pa.s.sages just quoted, as to suggest whether a legal check ought not to have been imposed on the free growth of the factory system, on account of its bad effects on the economic position of the labouring cla.s.s. We had suffered the system to advance too far to impose that check now, but there were other measures which, in his opinion, the Legislature might judiciously take in the same interest. It is of course impossible, by Act of Parliament, to infuse higher views of duty or warmer feelings of ordinary human regard into the relations between manufacturers and their workmen; but the State might, according to McCulloch, do something to mitigate the modern plague of commercial crises, by a policy of free trade, by adopting a sound monetary system, by securing a continuance of peace, and by ”such a scheme of public charity as might fully relieve the distresses without insulting the feelings or lessening the industry of the labouring cla.s.ses” (p. 192).

As with commercial crises, so with other features of the modern industrial system; wherever they tend to the deterioration of the labouring cla.s.s, McCulloch always holds the State bound to intervene, if it can, to prevent such a result. He would stop the immigration of what is sometimes called pauper labour--of bodies of workpeople brought up in an inferior standard of life--because their example and their compet.i.tion tend to pull down the native population to their own level.

The example he chooses is not the Jewish element in the East End of London, but the much more important case of the Irish immigration into Liverpool and Glasgow; and while he would prefer to see Government taking steps to improve the Irish people in Ireland itself, he declares that, if that is not practicable, then ”justice to our own people requires that measures should be adopted to hinder Great Britain from being overrun with the outpourings of this _officina pauperum_, to hinder Ireland from dragging us down to the same hopeless abyss of pauperism and wretchedness in which she is sunk” (p. 422). This policy may be wise, or it may not, but it shows very plainly--what appears so often in his writings--how deeply McCulloch's mind was penetrated with the conviction that one of the greatest of all the dangers from which the State ought to do what it well can to preserve the people, was the danger of falling to a lower standard of tastes and requirements, and thereby losing ambition and industry, and the very possibility of rising again.

”This lowering of the opinions of the labouring cla.s.s with respect to the mode in which they should live is perhaps the most serious of all the evils that can befall them.... The example of such individuals or bodies of individuals as submit quietly to have their wages reduced, and who are content if they get only mere necessaries, should never be held up for public imitation. On the contrary, everything should be done to make such apathy be esteemed discreditable. The best interests of society require that the rate of wages should be elevated as high as possible--that a taste for comforts and enjoyments should be widely diffused, and, if possible, interwoven with national habits and prejudices. Very low wages, by rendering it impossible for increased exertions to obtain any considerable increase of advantages, effectually hinder them from being made, and are of all others the most powerful cause of that idleness and apathy that contents itself with what can barely continue animal existence” (p. 415).

And he goes on to refute the idea of Benjamin Franklin, that high wages breed indolent and dissipated habits, and to contend that they not only improve the character and efficiency of the labourer, but are in the end a source of gain, instead of loss, to the employer. But, although the maintenance of a high rate of wages is so great an object of public solicitude, it was an object which it was, in McCulloch's judgment, outside the State's province, simply because it was outside its power, to do anything directly to promote, because while authority could fix a price for labour, it could never compel employers to engage labour at that price; and consequently its interference in such a way would only end in injury to the cla.s.s it sought to befriend, as well as to the trade of the country in general. Still, McCulloch is far from wis.h.i.+ng to repel the State's offices or the offices of public opinion in connection with the business altogether. In the pa.s.sage just quoted he expressly makes an appeal to public opinion for an active interference in a direction where, he believes, its interference might be useful; and as for the action of the State, he approves, for one thing, of the legalization of trades unions, and, for another, of the special instruction of the public, at the national expense, in the principles on which a high rate of wages depend.

In regard to the Factory Acts, while he would have the hours of labour in the case of grown-up men settled by the parties themselves, because he thought them the only persons competent to settle them satisfactorily, he strongly supported the interference of the Legislature, on grounds of ordinary humanity, to limit the working day of children and women, because ”the former are naturally, and the latter have been rendered, through custom and the inst.i.tutions of society, unable to protect themselves” (p. 426); and he seconded all Lord Shaftesbury's labours down to the Ten Hours Act of 1847, to which he objected on the ground that it involved a practical interference with all adult factory labour. On the other hand, he was in favour of the principle of employers' liability for accidents in mines and workshops, because there seemed no other way of saving the labourers from their own carelessness, except by making the masters responsible for the enforcement of the necessary regulations (p. 307).

But McCulloch's general position on this cla.s.s of questions is still better exemplified in the view he takes of the State's duty on a matter of great present interest, the housing of the poor. Here he has no hesitation in throwing the princ.i.p.al blame for the bad accommodation of the working-cla.s.ses of that day, for the underground cellar dwellings of Liverpool and Manchester, the overcrowded lodging-houses of London, and the streets of cottages unsupplied with water or drainage, on ”the culpable inattention of the authorities.” Mr. Goschen vindicates the legitimacy of Government interference with the housing of the people, on the ground that it is the business of Government to see justice done between man and man. When a man hired a house, Government had a right to see that he got a house, and a house meant a dwelling fit for human habitation. The inspection of houses is, according to this idea, only a case of necessary protection against fraud, like the inst.i.tution of medical examinations, the a.s.saying of metals, or the testing of drugs; and protection against fraud is admitted everywhere to be the proper business of Government. McCulloch bases his justification of the intervention on much broader grounds. Government needs no other warrant for condemning a house that is unfit for human habitation but the simple fact that the house is unfit for human habitation, and it makes no difference whether the tenant is cheated into taking the bad house, or takes it openly because he prefers it. In fact, the strongest reason, in McCulloch's opinion, for invoking Government interference in the case at all, is precisely the circ.u.mstance that so many people actually prefer unwholesome houses from motives of economy.

”Such cottages,” he says, ”being cheap, are always sure to find occupiers. Nothing, however, can be more obvious than that it is the duty of Government to take measures for the prevention and repair of an abuse of this sort. Its injurious influence is not confined to the occupiers of the houses referred to, though if it were, that would be no good reason for declining to introduce a better system. But the diseases engendered in these unhealthy abodes frequently extend their ravages through all cla.s.ses of the community, so that the best interests of the middle and higher orders, as well as of the lowest, are involved in this question. And, on the same principle that we adopt measures to guard against the plague, we should endeavour to secure ourselves against typhus, and against the brutalizing influence, over any considerable portion of the population, of a residence amid filth and disease” (p.

308).

The last clause is remarkable. The State is required to protect the people from degrading influences, to prevent them from being brutalized through the avarice or apathy of others, and to prevent them being brutalized through the avarice or apathy of themselves. It is not what many persons would expect, but here we have political economy, and the most ”orthodox” political economy, forcing people to go to a dearer market for their houses, in order to satisfy a sentiment of humanity, and imposing on the State a social mission of a broad positive character--the mission of extirpating brutalizing influences. Yet, expected or not, this is really the ordinary tradition of English economists--it is the principle laid down by Smith of obliging the State to secure for the people an unmutilated and undeformed manhood, to provide for them by public means the fundamental conditions of a humane existence.

McCulloch's position comes out more clearly still in the reasons he gives for advocating a compulsory provision for the able-bodied poor, and a national system of popular education. With regard to the impotent poor, he is content with saying that it would be inhumanity to deny them support, and injustice to throw their support exclusively on the benevolent. A poor-rate is sometimes defended on what are professed to be strictly economical grounds, by showing that it is both less mischievous and less expensive than mendicity; but what strikes McCulloch is not so much the wastefulness of private charity in the hands of the benevolent as the injustice of suffering the avaricious to escape their natural obligations. Few, however, have much difficulty in finding one good reason or another for making a public provision for the impotent poor; the crux of the question of public a.s.sistance is the case of the able-bodied poor. A provision for the able-bodied poor is practically a recognition in a particular form of ”the right to labour,”

and the right to labour resounds with many revolutionary terrors in our English ears, although it has, as a matter of fact, been practised quietly, and most of the time in one of its most pernicious forms, in every parish of England for nearly three hundred years.

Now on this question McCulloch was a convert. He confessed to the Committee on the State of the Poor in Ireland, in 1830, that he had changed his views on the subject entirely since his previous evidence in 1825. He had formerly been, he said, ”too much imbued with mere theory, with the opinions of Malthus and Townsend”; but he had become a firm believer in the necessity and the public advantage of a legal provision for the able-bodied poor, and he strongly recommended the introduction of such a system into Ireland, in the first instance as an instrument of individual relief, but also as an effectual engine of social improvement. He gives the reasons for his conversion partly in his evidence, and partly in a more systematic form in his ”Principles of Political Economy.” First, Malthus had attributed to the Poor Law itself effects which really sprang from certain bad arrangements that had been engrafted on the English system of relief, but were not essential to it--viz., the allowance system, and the law known as Gilbert's Act, which deprived parishes of the right to refuse relief except in workhouses, and forced them to provide work for paupers, if paupers desired it, at or near their own houses. These two arrangements, in McCulloch's opinion, converted the English provision for the able-bodied poor from what we may term a wise and conditional right of labour into an unwise and dangerous one. In the second place, he had come to see that a legal provision for the poor, instead of having, as was alleged, a necessary tendency to multiply pauperism, had in reality a natural tendency to prevent its growth, because it gave the landlords and influential ratepayers a strong pecuniary as well as moral interest in producing that result. Its effect was thus to establish in every parish a new local stimulus to social improvement, and it was on account of this effect of a Poor Law that McCulloch thought it would be specially beneficial to Ireland, because there was nothing Ireland needed more than just such a local stimulus. In the third place, he had become more and more profoundly impressed with the increasing gravity of the vicissitudes and fluctuations of employment to which English labourers were subject since England became mainly a manufacturing country, and that unhappy feature of manufacturing industry was his princ.i.p.al reason for invoking legislative a.s.sistance. A purely agricultural country, he thought, might be able to do without a Poor Law, because agricultural employment was comparatively steady; but in a manufacturing country a Poor Law was indispensable, on account of the long periods of depression or privation which were normal incidents in the life of labour in such a country, and on account of the pernicious effect which these periods of privation would, if unchecked, be certain to exercise upon the character and habits of the labouring cla.s.ses, through ”lowering their estimate of what is required for their comfortable and decent subsistence.”

(”Political Economy,” p. 448.)

”During these periods of extraordinary privation the labourer, if not effectually relieved, would imperceptibly lose that taste for order, decency, and cleanliness which had been gradually formed and acc.u.mulated in better times by the insensible operation of habit and example, and no strength of argument, no force of authority, could again instil into the minds of a new generation, growing up under more prosperous circ.u.mstances, the sentiments and tastes thus uprooted and destroyed by the cold breath of penury. Every return of temporary distress would therefore vitiate the feelings and lower the sensibilities of the labouring cla.s.ses” (p. 449).

McCulloch quotes these words from Barton, but he quotes them to express his own view, and their teaching is very explicit on the duty of Government to the unemployed in seasons of commercial distress. In such seasons of ”extraordinary privation” the State is called upon to take ”effectual” measures--extraordinary measures, we may infer, if extraordinary measures were necessary--for the relief of the unemployed, not merely to save them from starvation, but to prevent them from losing established habits of ”order, decency, and cleanliness”; from getting their feelings vitiated, their sensibilities impaired, so that they were in danger of remaining content with a worse standard of living, and sinking to a lower scale in the dignity of social and civilized being.

In a word, it is held to be the duty of the State to prevent, if it can, the temporary reverses of the labouring cla.s.s from resulting in its permanent moral decadence; and as the object of the State's intervention is to preserve the dignity, the self-respect, the moral independence and energy of the labouring cla.s.s, the manner of the intervention, the choice of actual means and steps for administering the relief, must, of course, be governed by the same considerations. ”The true secret of a.s.sisting the poor,” says McCulloch, borrowing the words of Archbishop Sumner, ”is to make them agents in bettering their own condition, and to supply them, not with a temporary stimulus, but with a permanent energy”

(p. 475).

The same principles come out even more strongly in McCulloch's remarks on national education. He says, ”the providing of elementary instruction for all cla.s.ses is one of the most pressing duties of Government” (p.

473); and the elementary instruction he would provide would not stop at reading and writing, but would include even a knowledge of so much political economy as would explain ”the circ.u.mstances which elevate and depress the rate of wages” (p. 474). It was the duty of Government to extirpate ignorance, because, ”of all obstacles to improvement, ignorance was the most formidable”; and it was its duty to establish Government schools for the purpose, because charity schools impaired the self-respect and sense of independence which were themselves first essentials of all social improvement.

”No extension of the system of charity and subscription schools can ever fully compensate for the want of a statutory provision for the education of the public. Something of degradation always attaches to the fact of one's having been brought up in a charity school. The parents who send children to such an inst.i.tution, and even the children, know that they have been received only because they are paupers unable to pay for their education; and this consciousness has a tendency to weaken that state of independence and self-respect, for the want of which the best education may be but an imperfect subst.i.tute. But no such feeling could operate on the pupils of schools established by the State” (p. 476).

There is no question with McCulloch about the right of the State to take steps to forward the moral progress, or to prevent the moral decadence, of the community--or any part of the community--under its care; that is simply its plain and primary duty, though there may be question with the State, as with other agencies, whether particular measures proposed for the purpose are really calculated to effect it.

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