Nationalism and Culture (21 page)

opposition to national unification, by its furthering of mercantilism and economic monopoly it gave the whole social evolution a direction which could only lead to capitalism j and degraded men became galley slaves of industry instead of economic leaders.

In the already existing states, originally founded on ownership of soil, the rising world commerce and the growing influence of commercial capital effected a profound change, for they broke the feudal bars and initiated the gradual transition from feudalism to industrial capitalism. The absolutist national state was dependent upon the help of the new economic forces, and vice versa. By the importation of gold from America the development of money economy in Europe was enormously enhanced. Money became, from now on, not only an ever larger factor in industry itself, but it developed into a political instrument of the first order. The boundless profligacy of the courts in the epoch of absolute monarchy, its armies and fleets, and lastly its mighty official apparatus, devoured enormous sums which must be ever newly procured. Furthermore, the endless wars of that period cost a mint of money. These sums could not be raised by the half-starved serf population of the country in spite of all the arts of exploitation of the financial magicians of the courts. Hence, other sources had to be sought. The wars themselves were largely the result of this political-economic evolution and of the struggle of the absolutist states for the hegemony of Europe. Thereby the original character of the old feudal states was thoroughly changed. On the one hand, money made it possible for the king completely to subjugate the nobles, thus establishing firmly the unity of the state j on the other hand, the royal power gave the merchants the protection necessary to escape the confiscations of the robber barons. From this community of interests evolved the real foundation of the so-called nationalist state and the concept of the nation in general.

But this selfsame monarchy, which for weighty reasons sought to further the aims of commercial capital and was, on the other hand, itself aided in its development by capital, grew at last into a crippling obstacle to any further reconstruction of European industry j and by unbridled favoritism it converted entire industrial lines into monopolies and so deprived the people at large of their benefits. Especially disastrous was the senseless regimentation imposed upon industry whereby the development of technical skill was forcibly inhibited and every advance in the field of industrial activity was artificially checked.

The further commerce spread, the more interest its leaders naturally had to have in the development of industry. The absolutist state, whose coffers the expansion of commerce filled by bringing into the country plenty of money, at first furthered the plans of commercial capital. Its armies and fleets, which had reached considerable proportions, contributed

to the expansion of industrial production because they demanded a number of things for whose large-scale production the shops of the small tradesman were no longer adapted. Thus gradually arose the so-called manufactures,- the forerunners of the later large industries, which were developed, however, only after the great scientific discoveries of a later period had smoothed the way by their application of new techniques to industry.

Manufactures developed as early as the middle of the sixteenth century after certain separate branches of production—especially ship-building, mining and ironworks—had opened the way for wider industrial activity. In general, the system of manufactures followed the line of rationalizing the increased productive forces achieved by the division of labor and the improvement of tools, a matter of great importance for the growing commerce.

In France, Prussia, Poland, Austria and other countries, the state had for financial reasons, side by side with private manufacture, itself started large enterprises for the exploitation of important industries. The financiers of the monarchies, indeed the kings themselves, gave the greatest attention to these enterprises and sought to advance them in every way for the enrichment of the state treasury. By prohibition of imports and by high tariffs on foreign goods they tried to protect native industry and keep money in the country. To do this the state sometimes used the most curious means. Thus, in England, an ordinance of Charles I commanded that the dead must be buried in woolen clothes in order to aid the cloth industry. A similar purpose was aimed at by the Austrian "mourning ordinance" of 1716 which, very businesslike, proclaimed that long mourning was prohibited to the citizens, since thereby the demand for colored clothing would be injuriously affected.

To make manufacture as profitable as possible every state sought to attract good workers from other countries, with the result that the emigration of artisans was soon prohibited by strict lawj in fact, transgressors were even threatened with the death penalty, as in Venice. Furthermore, to the possessors of political power all methods were justifiable to make labor as cheap and as profitable as possible to the manufacturers. Thus Colbert, the famous minister of Louis XIV, gave special prizes to parents who sent their children into the factories. In Prussia, an ordinance of Frederick the Great commanded that the children in the Potsdam orphanages should be employed in the royal silk factories. As a result the mortality among the orphans increased fivefold. Similar ordinances existed also in Austria and Poland.^

^ The word "manufacture" is derived from manu jacere, "to make things by hand."

^ Rich material concerning this epoch is contained in the great work of M. Kowa-

Nevertheless, no matter how the absolutist state strove, in its own interest, to meet the demands of commerce, it still put on industry countless fetters which became gradually more and more oppressive. The organization of industry cannot be pressed into definite forms by bureaucratic dictates without detrimental consequences. This has again been seen recently in Russia. The absolutist state which tried to bring all activities of its subjects under its unlimited guardianship became in time an unbearable burden, an incubus upon the people which paralyzed all economic and social life. The old guild, once the pioneer of handicraft and industry, had been robbed by the arising despotism of its former rights and of its independence. What remained of it was incorporated into the all-powerful state machine and had to serve it in raising taxes. Thus the guild gradually became an element of reaction, bitterly opposed to any change in industry.

Colbert, who is usually exalted as the cleverest statesman of the despotic age, while he sacrificed France's agriculture to trade and industry, yet never really understood the nature of industry. It was for him only the cow which absolutism could milk. Under his regime definite ordinances were instituted for every trade with the alleged purpose of keeping French industry on the height it had attained. Colbert actually imagined that any further perfection of industrial processes was impossible. Only thus can his so-called industrial policy be understood.

By these artificial means the inventive spirit was strangled and every creative impulse smothered at its birth. Work in its every phase became unintelligent imitation of the same old forms, whose constant repetition crippled all inner incentive. Until the outbreak of the great revolution work was done in France by exactly the same methods that had been in vogue at the end of the seventeenth century. During a period of a hundred years not the slightest changes were made. Thus it happened that English industry came gradually to excel the French, even in the production of those goods in which France had formerly held an undisputed leadership. Of the countless ordinances, with their mass of the most senseless details concerning the clothing, dwellings, social activities, and so on, of the members of each calling, we are not going to speak. True, when the intolerable condition had become all too evident, an attempt was made from time to time to obtain some relief by new ordinances, but such decrees were as a rule soon superseded by others. Furthermore, the courts' continual need of money enticed the governments into all kinds of roguish tricks to fill again their empty coffers. Thus a whole series of ordinances was proclaimed purely so that the guilds would get them rescinded again, for an appropriate payment—which always happened.

lewski, The Economic Development of Eurofe tilt the Beginning of the Capitalist Era. Berlin, 1901-1914.

On the same principle many monopolies were granted to individuals or corporations, seriously affecting the development of industry.

The French Revolution swept away the whole mass of oppressive royal ordinances and freed industry from the fetters that had been imposed on it. It was certainly no nationalistic reason which led to the creation of the modern constitutional state. Social conditions had gradually become so horrible that they could no longer be endured if France was not to be wholly ruined. It was the recognition of this fact which set the French bourgeoisie in motion and forced it into revolutionary paths.

In England also, industry was for a long time supervised by decrees of state and royal ordinances, although there the rage for regimentation never assumed such peculiar forms as in France and in most of the countries of the continent. The decrees of Edward IV, Richard III, Henry VII and Henry VIII burdened industry severely and greatly hindered its natural development j nor were these rulers the only ones who put brakes on industry. Kings and parliaments constantly issued new ordinances by which the economic situation was made increasingly difficult. Even the revolutions of 1642 and 1688 were not able completely to abolish these stacks of senseless rules and bureaucratic regulations, and considerable time had yet to pass before a new spirit became prevalent. For all that, England never had such a governmental supervision of its complete economic life as Colbert achieved in France. On the other hand, countless monopolies greatly hindered the development of industry. To put new money into its coffers the court sold whole branches of industry to natives and foreigners and continued to allot monopolies among its favorites. This had already begun during the Tudor dynasty, and the Stuarts and their successors continued in the same path. The government of Queen Elizabeth was especially profligate in the granting of monopolies, about which Parliament frequently complained.

Whole industries were given over to exploitation by individuals or small companies, and no one else dared to engage in them. Under this system there was no competition, nor any development of forms of production or methods of work. The Crown was concerned purely about the payment. About the inevitable consequences of such an economic policy it cared very little. This went so far that during the reign of Charles I a monopoly for the manufacture of soap was sold to a company of London soap-boilers, and a special royal ordinance forbade any household to make soap for its own consumption. Likewise, the exploitation of the tin deposits and the coal mines in the north of England was for a long time the monopoly of a few persons. The same is true of the glass industry and several other trades of that epoch. The result was that for a long time industry could not develop as a determining factor in national economy, being for a large part in the hands of privileged exploiters who had no

interest in its further development. The state was not only the protector but also the creator of monopoly, whereby it received considerable financial advantages, but also burdened industry continually with new fetters.

The worst development of the monopoly system in England occurred after the commencement of its colonial empire. Immense territories then came into the possession of small minorities, who in return for ridiculous payments were given monopolies from which they derived enormous riches in the course of a few years. Thus, during the reign of Queen Elizabeth the well-known East India Company was born, originally consisting of only five hundred shareholders to whom the government granted sole rights of trading in the East Indies and all lands east of the Cape of Good Hope and west of the Strait of Magellan. Every attempt to break this monopoly was severely punished, and citizens who took the risk of trading in such waters on their own account were subject to seizure. That these were not mere paper ordinances the history of those times eloquently testifies.^

Charles II gave Virginia to his brother's father-in-law for exploitation. Under the same king the famous Hudson Bay Company was formed, and endowed by the government with incredible powers. By a special royal ordinance this company was given the exclusive and perpetual monopoly of trade and industry in all coastal waters, natural channels, bays, streams and lake territories of Canada in all latitudes up to Hudson Strait. Furthermore, this company was given possession of all lands adjoining these waters so far "as it is not in the possession of one of our subjects or those of some other Christian prince or state." °

Even under James II, the successor of Charles II, the barter in overseas monopolies went merrily on. The king sold whole colonies to individuals or companies. The possessors of these monopolies suppressed the free settlers in the most abominable manner without interference from the Crown so long as it received 20 percent of the profits for its favors. In the same manner, special privileges were granted for ocean transporta-

* Very complete information concerning the history of this company, which was to play so important a part in English foreign commerce, is contained in the books of Beckle Wilson, Ledger and Sword, (London, 1903), and W. W. Hunter, History of British India (London, 1899).

Commendable books about the development of English industry, monopolies and ordinances of the ancient regime, are T. E. Rogers, Six Centuries of Work and Wages, The Economic Interfretation of History and A History of Agriculture and Prices in England. Much instructive material is contained in Adam Smith's An Inquiry into the "Nature and Causes of the Wealth of Nations, and the first volume of Marx's Cafital.

^ Rich material concerning the history of the Hudson Bay Company is contained in the excellent work, History of Canadian Wealth, by Gustavus Myers (Chicago, 1914).