Freeland: A Social Anticipation Part 15

CHAPTER XIX

Eden Vale: Aug. 11, ----

What we learnt from the director of the Freeland Central Bank occupied the thoughts of my father and myself for a long time. As this high functionary, who was a frequent visitor at the house of the Neys, dined with our hosts the next day, the table-talk ran mainly upon the Freeland inst.i.tutions. My father began by asking whether the circ.u.mstance that the rest of the world, from which Freeland did not--and, in fact, in this matter could not--isolate itself, paid interest for loans, did not induce Freeland savers to seek foreign investments for their money; or whether at least some artificial means had not to be adopted to prevent this.

'There is nothing, absolutely nothing,' answered Mr. Clark, 'to prevent Freeland savers from investing their capital abroad; in fact, at present--I have quite recently been referring to the statistics upon this point regularly published by our central bank--some two and a-half milliards (2,500,000,000) are invested partly in the large foreign banks, partly in European and American bonds. For example, a good half of your Italian national debt is in the hands of Freelanders. But what are such figures in comparison with the gigantic amounts of our savings and capital? We cannot prevent, and have no reason whatever to prevent, many Freelanders from being induced by foreign interest to acc.u.mulate more capital than is needed here at home on the one hand, and more than they consider necessary to insure themselves against old age on the other. For what is required for these two purposes cannot go abroad.'

'And is not this last-mentioned fact a disadvantage to the Freeland saver?'

I asked.

'A Freelander who thought so,' said Mr. Ney, 'must have a very imperfect knowledge of what is to his own advantage. The interest paid by foreign debtors can in no respect compare with the advantages offered by employment of the money in Freeland, those advantages being, as you know, equably distributed among all the members of our commonwealth. At the end of last year we had altogether thirty-four milliards sterling invested. The calculated profit of these investments amounted to seven milliards; therefore, more than twenty per cent. Moreover, thanks to these same investments, every Freelander enjoys gratuitously the electric light, warming, the use of railways and steams.h.i.+ps, &c., advantages the total value of which would very nearly equal the remunerative production effected by our investments. Anyone can now calculate how much more profitable Freeland investments of capital are than foreign ones. Moreover, the two and a-half milliards, of which friend Clark spoke, is a large sum in European and American financial operations, and it has actually contributed towards very considerably lowering from time to time the rate of interest in all the foreign money-markets; but when this amount is compared with Freeland finances, the investment of it abroad is seen to be simply an insignificant and harmless whim. This large sum brings in, at the present rate of interest--you will understand that Freeland savers invest merely in the very best European or American bonds--about thirty-four millions sterling; that is, not quite the two-hundredth part of the national revenue of Freeland. And there can be no doubt that this whim will--for us--lose much of even its present importance as Freeland continues to grow; for the compet.i.tion of our capital has already reduced the rate of discount of the Bank of England to one and a-quarter per cent., and raised the price of the One and a-Half per cent. Consols to 118; hence there can be no doubt that a large flow of Freeland savings to Europe and America must, in a near future, reduce the rate of interest to a merely nominal figure. That this whim of investing capital abroad will altogether vanish as soon as foreign countries adopt our inst.i.tutions is self-evident.'

I now addressed to Mr. Clark the question in what way the Freeland commonwealth guarded against the danger of _crises_, which, in my opinion, must here be much more disastrous than in any other country.

'Crises of any kind,' was the answer, 'would certainly dissolve the whole complex of the Freeland inst.i.tutions; but here they are impossible, for lack of the source from which they elsewhere spring. The cause of all crises, whether called production-crises or capital-crises, lies simply in over-production--that is, in the disproportion between production and consumption; and this disproportion does not exist among us. In fact, the starting-point of the Freeland social reform is the correct perception of the essential character of over-production arrived at twenty-six years ago by the International Free Society. Until then--and in the rest of the world it is still the case--the science of political economy found in this phenomenon an embarra.s.sing enigma, with which it did not know how better to deal than to deny its existence. There was no real over-production--that is, no general non-consumption of products--so taught the orthodox political economists; for, they contended, men labour only when induced to do so to supply a need, and it is therefore impossible in the nature of things that more goods should be produced than can be consumed. And, on our supposition, to which I will refer presently, this is perfectly correct.

Everyone will use what he produces to meet a certain need; he will either use his product himself or will exchange it for what another has produced.

It matters not what that other product is, it is at any rate something that has been produced; the question never need be what kind of product, but only whether some product is asked for. Let us a.s.sume that an improvement has taken place in the production of wheat: it is possible that the demand for wheat will not increase in proportion to the possibility of increasing its production, for it is not necessary that the producers of wheat should use their increased earnings in a larger consumption of wheat. But then the demand for something else would correspondingly increase--for example, for clothing, or for tools; and if this were only known in time, and production were turned in that direction, there would never be a disturbance in the exchange-relations of the several kinds of goods. Thus the orthodox doctrine explains crises as due not to a surplus of products in general, not to a mere disproportion between production and consumption, but to a transient disturbance of the right relation between the several kinds of production; and it adds that it is simply paradoxical to talk of a deficient demand in view of the misery prevailing all over the world.

'In this, in other respects perfectly una.s.sailable reasoning, only _one_ thing is forgotten--the fundamental const.i.tution of the exploiting system of society. Certainly it is a cruel paradox to speak of a general lack of demand in view of boundless misery; but where an immense majority of men have no claim upon the fruits of their labour, this paradox becomes a horrible reality. What avails it to the suffering worker that he knows how to make right, good, and needful use of what he produces, if that which he produces does not belong to him? Let us confine ourselves to the example of the increased production of wheat by improved methods of cultivation. If the right of disposal of the increased quant.i.ty of grain belonged to the agricultural producers, they would certainly eat more or finer bread, and thus themselves consume a part of the increased production; with another part they would raise the demand for clothing, and with another the demand for implements, which would necessarily be required in order that more grain and clothing might be produced. In such a case it would really be merely a question of restoring the right relation between the production of wheat, of clothing, of implements, which had been disturbed by the increased production of one of these--wheat; and increased production, a condition of greater prosperity for all, would, after some transient disturbances, be the inevitable consequence. But since the increased proceeds of wheat-cultivation do not belong to the workers, since those workers receive in any case only a bare subsistence, the progress which has been made in their branch of production does not enable them to consume either more grain or more clothing, and therefore there can exist no increased demand for implements for the production of wheat and textile fabrics.'

'But,' I objected, 'though this increased product is withheld from the workers, it is not ownerless--it belongs to the undertakers; and these too are men who wish to use their gains to satisfy some want or other. The undertakers will now increase their consumption; and after all one might suppose it would be impossible that a general disproportion should exist between supply and demand. Certainly it would now be commodities of another kind, the production of which would be stimulated in order to restore an equilibrium between the several branches of labour. If the increase belonged to the workers, then would more grain, more ordinary clothing, and more implements be required; but since it belongs to a few undertakers there will be an increased demand only for luxuries--dainties, laces, equipages--and for the implements requisite to produce these luxuries.'

'Exactly!' said David, who here joined in the conversation. 'Only the undertakers are by no means inclined to apply, in any considerable degree, the surplus derived from increased production to an additional consumption of luxuries; but they capitalise most of it--that is, invest it in implements of production. Nay, in some circ.u.mstances--as we heard yesterday--the "undertaker" is no man at all possessing human wants, but a mere dummy that consumes nothing and capitalises everything.'

'So much the better,' I said, 'wealth will increase all the more rapidly; for rapidly growing capital means rapidly increasing production, and that is in itself identical with rapidly increasing wealth.'

'Splendid!' cried David. 'So, because the working ma.s.ses cannot increase their consumption, and the undertakers will not correspondingly increase theirs, and consequently there can be no increased consumption of any commodity whatever, therefore the surplus power of production is utilised in multiplying the means of production. That is, in other words, no one needs more grain--so let us construct more ploughs; no one needs more textile material--so let us set up more spinning-mills and looms! Are you not yet able to measure the height of absurdity to which your doctrine leads?'

I think, Louis, you, like myself, will admit that there is simply no reply to reasoning so plain and convincing. An economic system which bars the products of human industry and invention from the only use to which they should finally be applied--namely, that of satisfying some human requirement--and which is then astonished that they cannot be consumed, narrowly escapes idiocy. But that such is the character of the system which prevails in Europe and America must in the end become clear to everyone.

'But, in heaven's name, what becomes of the productive power among us which thus remains unemployed?' I asked. 'We are, on the whole, as advanced in art, science, and technical skill as you are in Freeland; I must therefore suppose that we could become as rich, or nearly so, as you, if we could only find a use for all our production. But we do not actually possess a tenth of your wealth, and yet there is twice as much hard work done among us as there is here. For though among you everyone works, and among us there are several millions of persons of leisure who live simply upon the toil of others, yet this is counterbalanced by the circ.u.mstance that our working ma.s.ses are kept at their toil ten hours or more daily, whilst here an average working day is only five hours. Certainly among us there are millions of unemployed workers; but that also is more than compensated for by the labour of women and children, which is unknown among you. Where then, I repeat, lies the immense difference between the utilisation of our powers of production and of yours?'

'In the equipment of labour,' was the answer. 'We Freelanders do not work so hard as you do, but we make full use of all the aids of science and technics, whilst you are able to do this only exceptionally, and in no case so completely as we do. All the inventions and discoveries of the greatest minds are as well known to you as to us; but as a rule they are taken advantage of only by us. Since your aristocratic inst.i.tutions prevent you from enjoying the things the production of which is facilitated by those inventions, you are not able to take advantage of the inventions except in such small measure as your inst.i.tutions permit.'

Even my father was profoundly moved by this crus.h.i.+ng exposition of a system which he had always been accustomed to honour as the highest emanation of eternal wisdom. 'Incredible! shocking!' he murmured in a tone audible only to myself.

But Mr. Clark proceeded: 'Among us, on the contrary, the theorem of the so-called cla.s.sical economics, that a general excess of production is impossible, has become a truth, for in Freeland consumption and production exactly tally. Here there can be over-production only temporarily and in _isolated_ kinds of goods--that is, the equilibrium between different kinds of production may be temporarily disturbed. But we have no need to be afraid of even this trifling danger. The intimate connection of all productive interests springing from the nature of our inst.i.tutions is an antecedent guarantee of equilibrium between all branches of production. A careful examination will show that the whole of Freeland is one great productive society, whose individual members are independent of one another, and yet are connected in one respect--namely, in respect of the proceeds of their labour. Just because everyone can labour where and how he pleases, but everyone's labour is alike in aiming at the highest possible utility, so--apart from any incidental errors--it is impossible but that an equal amount of labour should result in an equal amount of utility. All our inst.i.tutions tend towards this one point. At first, as long as our commonwealth was in its initial stages, it sometimes happened that considerable inequalities had to be subsequently balanced; the producers did not always know until the year's accounts were closed what one and the other had earned. But that was a period of childhood long since outlived.

At present, every Freelander knows, to within such trifling variations as may be due to little unforeseen accidents, exactly what he and others have earned, and also what they have every prospect of earning in the near future. He does not wait for inequalities to arise and then set about rectifying them; but he takes care that inequalities shall not arise. Since our statistics always show with unerring accuracy what at the time is being produced in every branch of industry, and since the demand as well as its influence upon prices can be exactly estimated from a careful observation of past years, therefore the revenue not only of every branch of industry, but of every separate establishment, can be beforehand so reliably calculated that nothing short of natural catastrophes can cause errors worth notice. If such occur, then comes in the a.s.sistance of the reciprocal insurance. In fact, in this country, not only are there no crises, but not even any considerable variations in the different productions. Our Statistical Department publishes an unbroken series of exact comparative statistics, from which can at any time be seen where either fresh demand or excess of labour is likely to arise; our supply of labour is controlled by these returns, and that is sufficient--with rare exceptions--to preserve a perfect equilibrium in production. It frequently occurs that here or there a newly started establishment comes to grief, particularly in the mining industry. Such a failure must not, however, be regarded as a bankruptcy--how can undertakers become bankrupt when they have neither ground-rent, nor interest, nor wages to pay, and who in any case still possess their highly priced labour-power?--but at the worst as a case of disappointed expectations. And should the very rare circ.u.mstance occur, that the community or an a.s.sociation loses the loaned capital through the premature death of the borrower, of what importance is that in the face of the gigantic sums safely employed in our business? And if a guaranty (_del credere_) were insisted upon to cover such a loss, it would amount to scarcely a thousandth part of one per cent., and would not be worth the ink used in writing it.'

'And do not foreign crises sometimes disturb the calm course of your Freeland production? Are not your markets flooded, through foreign over-production, with goods for which there is no corresponding demand?' I asked.

'It certainly cannot be denied that we are considerably inconvenienced by the frequent and sudden changes of price in the markets of the world caused by the anarchic character of the exploiting system of production. We are thereby often compelled to diminish our production in certain directions, and divert the labour thus set free to other branches of industry, though there is no actual change in the cost of production or in the relative demand. These foreign, sudden, and incalculable influences sometimes make a diversion of labour from one production to another necessary in order to preserve an equilibrium in the profits, though the regular and automatic migration of labour from one industry to another is sufficient to correct the disturbance in the relations between supply and demand due to natural causes. But these spasmodic foreign occurrences cannot produce a serious convulsion in our industrial relations. Just as it is impossible to throw out of equilibrium a liquid which yields to every pressure or blow, so our industry is able to preserve its equilibrium by means of its absolutely free mobility. It may be thrown into fruitless agitation, but its natural gravity at once restores the harmony of its relations. But, as I have said, such a disturbance is produced only by a partial over-production abroad.

That this brings about a superabundance of all commodities, we care but little. Since foreign countries do not send us their goods for nothing, but demand other goods in return, what those other goods shall be is their business, not ours. We have no interest-bearing bonds or saleable property in land; hence our export goods must be the produce of our labour. The fact that in Freeland every product must find a purchaser is therefore by no means affected by external trade.'

'That is very clear,' I admitted.

'But,' interposed my father,' why do you not protect yourselves against disturbance due to foreign fluctuations in production, by a total exclusion of foreign imports?'

'Because that would be to cut off one's hand in order to prevent it from being injured,' was Mr. Clark's drastic answer. 'We import only those goods which we cannot produce so cheaply ourselves. But since, as I have already taken the liberty of saying, the imported goods are not presented to us, but must be paid for by goods produced by us, it is of importance that we should be able to produce the goods with which we make the payment more cheaply--that is, with less expenditure of labour-power--than we could the imported goods. For instance, we manufacture scarcely any cotton goods, but get nearly all such goods from England and America. We could, certainly, manufacture cotton goods ourselves, but it is plain that we should have to expend upon their manufacture more labour-power than upon the production of the corn, gold, machinery, and tools with which we pay for the cotton goods that we require. If it were not so, we should manufacture cotton goods also, for there is no conceivable reason for not doing so but the one just mentioned. If, therefore, our legislature prohibited the importation of cotton goods, we should have to divert labour from other branches of industry for the sake of producing _less_ than we do now. We should have either to put up with fewer goods, or to work more, to meet the same demand. Hence, in this country, to enact a protective duty would be held to be pure madness.'

'Then you hold,' said my father, 'that our European and American economists and statesmen who still in part adhere to the system of protection, are simply Bedlamites; and you believe that the only rational commercial policy is that of absolute free trade?'

'Allow me to say,' answered Mr. Clark,' that Europe and America are not Freeland. I certainly cannot regard protection even abroad as rational, for the a.s.sumptions from which it starts are under all circ.u.mstances false. But neither do I think the foreign free trader is essentially wiser than the protectionist, for he also starts from a.s.sumptions which are baseless in an exploiting country. The prohibitionists think they are encouraging production: they are doing the opposite, they are hindering and hampering production; and the free traders, in so far as they insist upon this fact, are perfectly correct. Both parties, however, fail to see that in an exploiting society, which is never able to utilise more than a small part of its power to produce, the influence of legislative interference with trade upon the good or the bad utilisation of productive power is a matter of very little importance. Of what advantage is it to the free traders that a nation under the domination of their commercial system _is able_ to make the most prolific use of their industrial capacities, so long as the continuance of industrial servitude prevents this nation from enjoying more than enough to satisfy the barest necessities of life? More than is consumed cannot, under any circ.u.mstances, be produced; and consumption among you abroad is so infinitely small, that it is verily ridiculous to dispute over the question whether this or that commodity can be produced better at home or abroad.

'What alone interests us in this controversy among the foreign commercial politicians is that neither party has the slightest suspicion that what the free traders rightly reproach the protectionists with, and what the latter wrongly defend, is the very thing that gains so many adherents to protection--namely, the hindering and hampering of production. The protectionists have a right to boast that they compel their people to apply two day's labour or a double amount of capital to the production at home of a thing which, by means of external trade, might have been exchanged for things that are the product of merely half as much expenditure of home labour. We, who work in order to enjoy, would have a good right to treat as insane any persons among us who proposed such a course as an "encouragement of home labour"; but among you, where labour and enjoyment are completely dissevered, where millions cry for work as a favour--among you, the hampering of labour is felt to be a benefit because it makes more toil necessary in order to procure an equal amount of enjoyment. Among you it is also a somewhat dangerous narcotic, for protection has a Ja.n.u.s head: it not merely increases the toil, it at the same time still more diminishes the consumption by raising the price of the articles in demand, the rise in price never being followed immediately by a rise in wages; so that, in the end, in spite of the increased difficulty in production, no more labour and capital are employed than before. But the intimate relation between these things is as a book sealed with seven seals to both protectionists and free traders. Had it been otherwise, they must long since have seen that the cure for industrial evils must be looked for not in the domain of commercial politics, but in that of social politics.'

'Now I begin to understand,' I cried out, 'the widespread growth of economic reaction against which we Western Liberals are waging a ridiculous Quixotic war with all our apparently irrefutable arguments. We present to the people as an argument against protection exactly that after which they are--unconsciously, it is true--eagerly longing. Protective tariffs, trade guilds, and whatever else the ingenious devices of the last decades may be called, I now understand and recognise as desperate attempts made by men whose very existence is threatened by the ever growing disproportion between the power to produce and consumption--attempts to restore to some extent the true proportion by curbing and checking the power to produce.

Whilst the protectionist is eager to put fetters upon the international division of labour, to keep at a distance the foreigner who might otherwise save him some of his toil, the advocate of trade-guilds fights for hand-labour against machine-labour and commerce. And when I look into the matter, I find all these people are in a certain sense wiser than we Liberals of the old school, who know no better cure for the malady of the time than that of shutting our eyes as firmly as possible. It is true, our intentions have been of the best; but since we have at length discovered how to attain what we wished for, we should at once throw off the fatal self-deception that political freedom would suffice to make men truly free and happy. Political freedom is an indispensable, but not the sole, condition of progress; whoever refuses to recognise this condemns mankind afresh to the night of reaction. For if, as our Liberal economics has taught, it were really contrary to the laws of nature to guarantee to all men a full partic.i.p.ation in the benefits of progress, then not only would progress be the most superfluous thing imaginable, but we should have to agree with those who a.s.sert that the eternally disinherited ma.s.ses can find happiness only in ignorant indifference. Now I realise that the material and mental reaction is the logically inevitable outcome of economic orthodoxy. If wealth and leisure are impossible for all, then it is strictly logical to promote material and mental reaction; whilst it is absurd to believe that men will perpetually promote a growth of culture without ever taking advantage of it. I now see with appalling distinctness that if our toiling ma.s.ses had not been saved by their social hopes from sharing our economic pessimism, we Liberals would long since have found ourselves in the midst of a reaction of a fearful kind: it is not through _us_ that modern civilisation has been spared the destruction which overwhelmed its predecessors.'

After dinner, Mr. Ney invited us to accompany him to the National Palace, where the Parliament for Public Works was about to hold an evening session in order to vote upon a great ca.n.a.l project. He thought the subject would interest us. We accepted the invitation with thanks.

The Parliament for Public Works consists of 120 members, most of whom, as David--who was one of the party--told me, are directors of large a.s.sociations, particularly of a.s.sociations connected with building; but among the members are also professors of technical universities, and other specialists. The body contains no laymen who are ignorant of public works; and the parliament may be said to contain the flower and quintessence of the technical science and skill of all Freeland.

The project before the house was one which had been advocated for above a year by the directors of the Water and Mountain-Cultivation a.s.sociations of Eden Vale, North Baringo, Ripon, and Strahl City, in connection with two professors of the technical university of Ripon. The project was nothing less than the construction of a ca.n.a.l navigable by s.h.i.+ps of 2,000 tons burden, from Lake Tanganika, across the Mutanzige and Albert Nyanza, whence the Nile could be followed to the Mediterranean Sea; and from the mouth of the Congo, along the course of that river, across the Aruwhimi to the Albert lake; thence following several smaller streams to the Baringo lake, along the upper course of the Dana, and thence to the Indian Ocean. The project thus included two water-ways, one of which would connect the great lakes of Central Africa with the Mediterranean Sea, and the other, crossing the whole of the continent, would connect the Atlantic with the Indian Ocean. Since a part of the immense works involved in this project would have to be carried through foreign territories--those of the Congo State and of Egypt--negotiations had been opened with those States, and all the necessary powers had been obtained. The readiness of the foreign governments to accede to the wishes of the Eden Vale executive is explained by the fact that Freeland did not propose to exact any toll for the use of its ca.n.a.ls, thus making its neighbours a free gift of these colossal works.

In connection with this project, there was also another for the acquisition of the Suez Ca.n.a.l, which was to be doubled in breadth and depth and likewise thrown open gratuitously to the world. The English government, which owned the greater part of the Suez Ca.n.a.l shares, had met the Freelanders most liberally, transferring to them its shares at a very low price, so that the Freelanders had further to deal with only holders of a small number of shares, who certainly knew how to take advantage of the situation. The British government stipulated for the inalienable neutrality of the ca.n.a.l, and urged the Freelanders to prosecute the work with vigour.

The following were the preliminary expenses:

South-North Ca.n.a.l (total length 3,900 miles) 385,000,000 East-West Ca.n.a.l (total length 3,400 miles) 412,000,000 Suez Ca.n.a.l (purchase and enlargement) 280,000,000 Total 1,077,000,000

It was estimated that the whole would be completed in six years, and that therefore a round sum of 180,000,000 would be required yearly during the progress of the work. The Freeland government believed that they were justified by their past experience in expecting that the national income would in the course of the coming six years increase from seven milliards--the income of the past year--to at least ten and a-half milliards, giving a yearly average of eight and a-half milliards for the six years. The cost of construction of the projected works would therefore absorb only two and one-eighth per cent. of the estimated national income, and would be covered without raising the tax upon this income above its normal proportion. The estimated cost was accompanied by detailed plans, and also by an estimate of the profits, according to which it was calculated that in the first year of use the ca.n.a.ls would save the country 32,000,000 in cost of transport; and therefore, taking into account the presumptive growth of traffic, the ca.n.a.ls would, in about thirty years, pay for themselves in the mere saving of transport expenses. Moreover, these future waterways were to serve in places as draining and irrigating ca.n.a.ls; and it was calculated that the advantage thus conferred upon the country would be worth on an average 45,000,000 a year. Thus the whole project would pay for itself in fourteen years at the longest, without taking into account the advantages conferred upon foreign nations.

As the whole of the proposals and plans had been in the hands of the members for several weeks, and had been carefully studied by them, the discussion began at once. No one offered any opposition to the principle of the project. The debate was confined chiefly to two questions: first, whether it was not possible to hasten the construction; and secondly, whether an alternative plan, the details of which were before the house, was not preferable. With reference to the first question, it was shown that, by adopting a new system of dredging devised by certain experienced specialists, quite six months could be saved; and it was therefore resolved to adopt that system. As to the second question, after hearing the arguments of Mr. Ney, it was unanimously decided to adhere to the plan of the central executive. After a debate of less than three hours, the government found itself empowered to spend 1,077,000,000, something more than the cost of all the ca.n.a.ls in the rest of the civilised world. This amount was to be spent in five and a-half years, in constructing works which would make it possible for ocean steamers to cross the African continent from east to west, to pa.s.s from the Mediterranean as far as the tenth degree of south lat.i.tude, and to remove every obstacle and every toll from the pa.s.sage of the Suez Ca.n.a.l.

I was absolutely dumfounded by all this. 'If I had not already resolved to strike the word "impossible" out of my vocabulary, I should do it now,' I remarked to Mr. Ney on our way home. I must add that in the Freeland parliaments all the proceedings take place in the presence of the public, so that I had an opportunity of making a hasty examination of the details of the project which had just been adopted. You know that I understand such things a little, and I was therefore able to gather from the plans that the two central s.h.i.+p ca.n.a.ls crossed several watersheds. One of these watersheds I accidentally knew something of, as we had pa.s.sed a part of it on our journey hither, and a part of it we had seen in some of our excursions. It rises, as I reckon, at least 1,650 feet above the level of the ca.n.a.l. I asked Mr. Ney whether it was really proposed to carry a waterway for s.h.i.+ps of 2,000 tons burden some 1,650 feet up and down--was it not impossible either to construct or to work such a ca.n.a.l?

'Certainly!' he replied, with a smile. 'But if you look at the plan more carefully, you will see that we do not _go over_ such watersheds by means of locks, but _under_ them by means of tunnels.'

I looked at him incredulously, and my father's face expressed no little astonishment.

'What do you find remarkable in that, my worthy guests? Why should it be impracticable to do on ca.n.a.ls what has so long and extensively been done on railways, which could be much more easily carried _over_ hills and valleys?' asked Mr. Ney. 'I admit that our ca.n.a.l tunnels are very costly; but as, in working, they spare us what is the most expensive of all things, human labour-time, they are the most practical for our circ.u.mstances.

Besides, in several cases we had no alternative except to dispense with the ca.n.a.ls or to construct tunnels. The watershed you speak of is not the most considerable one: our greatest boring--connecting the river system of the Victoria Nyanza with the Indian Ocean--is carried, in one stretch of ten and a-half miles, 4,000 feet below the watershed; and altogether, in our new project, we have not less than eighty-two miles of tunnelling. Such tunnels are, however, not quite novelties. There are in France, as you know, several short water-tunnels; we possess, in our old ca.n.a.l system, several very respectable ones, though certainly they cannot compare either in length or in size with the new ones, by means of which large ocean vessels--with lowered masts, of course--will be able to steam through the bowels of whole ranges of mountains. The cost is enormous; but you must remember that every hour saved to a Freeland sailor is already worth eight s.h.i.+llings, and increases in value year by year.'

'But,' said my father, 'what, after all, is inconceivable to me is the haste, I might almost say the _nonchalance_, with which milliards were voted to you, as if it was merely a question of the veriest trifle. I would not for a moment question the integrity of the members of your Parliament for Public Buildings; but I cannot refrain from saying that the whole a.s.sembly gave me the impression of expecting the greatest personal advantage from getting the work done as speedily and on as large a scale as possible.'

'And that impression was a correct one,' replied Mr. Ney. 'But I must add that every inhabitant of Freeland will necessarily derive the same personal profit from the realisation of this ca.n.a.l project. Just because it is so, just because among us there truly exists that solidarity of interests which among other peoples exists only in name, are we able to expend such immense sums upon works which can be shown to promise a utility above their cost.

If, among you, a ca.n.a.l is constructed which increases the profitableness of large tracts of land, your recognised economics teaches you that it adds to the prosperity of all. But this is correct only for the owners of the ground affected by the ca.n.a.l, whilst the great ma.s.s of the population is not benefited in the least by such a ca.n.a.l, and perhaps the owners of other competing tracts of land are actually injured. The lowering of the price of corn--so your statesmen a.s.sert--benefits the non-possessing cla.s.ses; they forget the little fact that the rate of wages cannot be permanently maintained if the price of corn sinks. Against this there is certainly to be placed as a consolation the fact that the non-possessing ma.s.ses will not be permanently injured by the increased taxes necessitated by such public works; for he who earns only enough to furnish a bare subsistence cannot long be made to pay much in taxes. Therefore, in your countries, the controversy over such investments is a conflict of interests between different landowners and undertakers, some of whom gain, whilst others gain nothing, or actually lose. Among us, on the contrary, everyone is alike interested in the gains of profitable investments in proportion to the amount of work he does; and everyone is also called upon to contribute to the defraying of the cost in proportion to the amount of work he does: hence, a conflict of interests, or even a mere disproportion in reaping the advantage, is among us absolutely excluded. The new ca.n.a.ls will convert 17,000,000 acres of bog into fertile agricultural land. Who will be benefited, when this virgin soil traversed by such magnificent waterways annually produces so many more pounds sterling per acre than is produced by other land? Plainly everyone in Freeland, and everyone alike, whether he be agriculturist, artisan, professor, or official. Who gains by the lowering of freights? Merely the a.s.sociations and workers who actually make use of the new waterways for transport? By no means; for, thanks to the unlimited mobility of our labour, they necessarily share with everyone in Freeland whatever advantage they reap. Therefore, with perfect confidence, we commit the decision of such questions to those who are most immediately interested in them. They know best what will be of advantage to them, and as their advantage is everybody's advantage, so everybody's--that is, the commonwealth's--treasury stands as open and free to them as their own. If they wish to put their hands into it, the deeper the better! We have not to inquire _whom_ the investment will benefit, but merely _if_ it is profitable--that is, if it saves labour.'

'Marvellous, but true!' my father was compelled to admit. 'But since in this country there exists the completest solidarity of interests, I cannot understand why you require the repayment of the capital which the commonwealth supplies to the different a.s.sociations.'

'Because not to do so would be Communism with all its inevitable consequences,' was the answer. 'The ultimate benefit of such gratuitously given capital would certainly be reaped by all alike; but, in that case, who could guarantee that the investment of the capital should be advantageous and not injurious? For an investment of capital is advantageous only when by its help more labour is saved than the creation of the capital has cost. A machine that absorbs more labour than it takes the place of is injurious. But we are now secured against such wasteful expenditure, at least against any known waste of capital. The commonwealth, as well as individuals, may be mistaken in its calculations; both may consider an investment profitable which is afterwards proved to be unprofitable--that is, which does not pay for the labour which it costs.

Nevertheless, the _intention_ in all investments can only be to save the expenditure of energy, for both the commonwealth and individuals must bear the cost of their own investments. If, however, the commonwealth had to be responsible for the investments of individuals--that is, of the a.s.sociations--then the several a.s.sociations would have no motive to avoid employing such mechanical aids as would save less labour than they cost.