Essays on Political Economy

Chapter 9

Chapter 94,174 wordsPublic domain

The new _Government_ is no less embarrassed than the former one, for it soon finds that it is much more easy to promise than to perform. It tries to gain time, for this is necessary for maturing its vast projects. At first, it makes a few timid attempts: on one hand it institutes a little elementary instruction; on the other, it makes a little reduction in the liquor tax (1850). But the contradiction is for ever starting up before it; if it would be philanthropic, it must attend to its exchequer; if it neglects its exchequer, it must abstain from being philanthropic.

These two promises are for ever clashing with each other; it cannot be otherwise. To live upon credit, which is the same as exhausting the future, is certainly a present means of reconciling them: an attempt is made to do a little good now, at the expense of a great deal of harm in future. But such proceedings call forth the spectre of bankruptcy, which puts an end to credit. What is to be done then? Why, then, the new Government takes a bold step; it unites all its forces in order to maintain itself; it smothers opinion, has recourse to arbitrary measures, ridicules its former maxims, declares that it is impossible to conduct the administration except at the risk of being unpopular; in short, it proclaims itself _governmental_. And it is here that other candidates for popularity are waiting for it. They exhibit the same illusion, pass by the same way, obtain the same success, and are soon swallowed up in the same gulf.

We had arrived at this point in February.[5] At this time, the illusion which is the subject of this article had made more way than at any former period in the ideas of the people, in connexion with Socialist doctrines. They expected, more firmly than ever, that _Government_, under a republican form, would open in grand style the source of benefits and close that of taxation. "We have often been deceived," said the people; "but we will see to it ourselves this time, and take care not to be deceived again?"

What could the Provisional Government do? Alas! just that which always is done in similar circumstances--make promises, and gain time. It did so, of course; and to give its promises more weight, it announced them publicly thus:--"Increase of prosperity, diminution of labour, assistance, credit, gratuitous instruction, agricultural colonies, cultivation of waste land, and, at the same time, reduction of the tax on salt, liquor, letters, meat; all this shall be granted when the National Assembly meets."

The National Assembly meets, and, as it is impossible to realise two contradictory things, its task, its sad task, is to withdraw, as gently as possible, one after the other, all the decrees of the Provisional Government. However, in order somewhat to mitigate the cruelty of the deception, it is found necessary to negotiate a little. Certain engagements are fulfilled, others are, in a measure, begun, and therefore the new administration is compelled to contrive some new taxes.

Now, I transport myself, in thought, to a period a few months hence, and ask myself, with sorrowful forebodings, what will come to pass when the agents of the new Government go into the country to collect new taxes upon legacies, revenues, and the profits of agricultural traffic? It is to be hoped that my presentiments may not be verified, but I foresee a difficult part for the candidates for popularity to play.

Read the last manifesto of the Montagnards--that which they issued on the occasion of the election of the President. It is rather long, but at length it concludes with these words:--"_Government ought to give a great deal to the people, and take little from them_." It is always the same tactics, or, rather, the same mistake.

"Government is bound to give gratuitous instruction and education to all the citizens."

It is bound to give "A general and appropriate professional education, as much as possible adapted to the wants, the callings, and the capacities of each citizen."

It is bound "To teach every citizen his duty to God, to man, and to himself; to develop his sentiments, his tendencies, and his faculties; to teach him, in short, the scientific part of his labour; to make him understand his own interests, and to give him a knowledge of his rights."

It is bound "To place within the reach of all, literature and the arts, the patrimony of thought, the treasures of the mind, and all those intellectual enjoyments which elevate and strengthen the soul."

It is bound "To give compensation for every accident, from fire, inundation, &c., experienced by a citizen." (The _et cætera_ means more than it says.)

It is bound "To attend to the relations of capital with labour, and to become the regulator of credit."

It is bound "To afford important encouragement and efficient protection to agriculture."

It is bound "To purchase railroads, canals, and mines; and, doubtless, to transact affairs with that industrial capacity which characterises it."

It is bound "To encourage useful experiments, to promote and assist them by every means likely to make them successful. As a regulator of credit, it will exercise such extensive influence over industrial and agricultural associations, as shall ensure them success."

Government is bound to do all this, in addition to the services to which it is already pledged; and further, it is always to maintain a menacing attitude towards foreigners; for, according to those who sign the programme, "Bound together by this holy union, and by the precedents of the French Republic, we carry our wishes and hopes beyond the boundaries which despotism has placed between nations. The rights which we desire for ourselves, we desire for all those who are oppressed by the yoke of tyranny; we desire that our glorious army should still, if necessary, be the army of liberty."

You see that the gentle hand of Government--that good hand which gives and distributes, will be very busy under the government of the Montagnards. You think, perhaps, that it will be the same with the rough hand--that hand which dives into our pockets. Do not deceive yourselves. The aspirants after popularity would not know their trade, if they had not the art, when they show the gentle hand, to conceal the rough one. Their reign will assuredly be the jubilee of the tax-payers.

"It is superfluities, not necessaries," they say "which ought to be taxed."

Truly, it will be a good time when the exchequer, for the sake of loading us with benefits, will content itself with curtailing our superfluities!

This is not all. The Montagnards intend that "taxation shall lose its oppressive character, and be only an act of fraternity." Good heavens! I know it is the fashion to thrust fraternity in everywhere, but I did not imagine it would ever be put into the hands of the tax-gatherer.

To come to the details:--Those who sign the programme say, "We desire the immediate abolition of those taxes which affect the absolute necessaries of life, as salt, liquors, &c., &c.

"The reform of the tax on landed property, customs, and patents.

"Gratuitous justice--that is, the simplification of its forms, and reduction of its expenses," (This, no doubt, has reference to stamps.)

Thus, the tax on landed property, customs, patents, stamps, salt, liquors, postage, all are included. These gentlemen have found out the secret of giving an excessive activity to the _gentle hand_ of Government, while they entirely paralyse its _rough hand_.

Well, I ask the impartial reader, is it not childishness, and more than that, dangerous childishness? Is it not inevitable that we shall have revolution after revolution, if there is a determination never to stop till this contradiction is realised:--"To give nothing to Government and to receive much from it?"

If the Montagnards were to come into power, would they not become the victims of the means which they employed to take possession of it?

Citizens! In all times, two political systems have been in existence, and each may be maintained by good reasons. According to one of them, Government ought to do much, but then it ought to take much. According to the other, this twofold activity ought to be little felt. We have to choose between these two systems. But as regards the third system, which partakes of both the others, and which consists in exacting everything from Government, without giving it anything, it is chimerical, absurd, childish, contradictory, and dangerous. Those who parade it, for the sake of the pleasure of accusing all Governments of weakness, and thus exposing them to your attacks, are only flattering and deceiving you, while they are deceiving themselves.

For ourselves, we consider that Government is and ought to be nothing whatever but _common force_ organized, not to be an instrument of oppression and mutual plunder among citizens; but, on the contrary, to secure to every one his own, and to cause justice and security to reign.

What Is Money?

"Hateful money! hateful money!" cried F----, the economist, despairingly, as he came from the Committee of Finance, where a project of paper money had just been discussed.

"What's the matter?" said I. "What is the meaning of this sudden dislike to the most extolled of all the divinities of this world?"

F. Hateful money! hateful money!

B. You alarm me. I hear peace, liberty, and life cried down, and Brutus went so far even as to say, "Virtue! thou art but a name!" But what can have happened?

F. Hateful money! hateful money!

B. Come, come, exercise a little philosophy. What has happened to you? Has Crœsus been affecting you? Has Mondor been playing you false? or has Zoilus been libelling you in the papers?

F. I have nothing to do with Crœsus; my character, by its insignificance, is safe from any slanders of Zoilus; and as to Mondor--

B. Ah! now I have it. How could I be so blind? You, too, are the inventor of a social reorganization--of the _F---- system_, in fact. Your society is to be more perfect than that of Sparta, and, therefore, all money is to be rigidly banished from it. And the thing that troubles you is, how to persuade your people to empty their purses. What would you have? This is the rock on which all reorganizers split. There is not one, but would do wonders, if he could only contrive to overcome all resisting influences, and if all mankind would consent to become soft wax in his fingers; but men are resolved not to be soft wax; they listen, applaud, or reject, and--go on as before.

F. Thank heaven, I am still free from this fashionable mania. Instead of inventing social laws, I am studying those which it has pleased Providence to invent, and I am delighted to find them admirable in their progressive development. This is why I exclaim, "Hateful money! hateful money!"

B. You are a disciple of Proudhon, then? Well, there is a very simple way for you to satisfy yourself. Throw your purse into the Seine, only reserving a hundred sous, to take an action from the Bank of Exchange.

F. If I cry out against money, is it likely I should tolerate its deceitful substitute?

B. Then I have only one more guess to make. You are a new Diogenes, and are going to victimize me with a discourse _à la Seneca_, on the contempt of riches.

F. Heaven preserve me from that! For riches, don't you see, are not a little more or a little less money. They are bread for the hungry, clothes for the naked, fuel to warm you, oil to lengthen the day, a career open to your son, a certain portion for your daughter, a day of rest after fatigue, a cordial for the faint, a little assistance slipped into the hand of a poor man, a shelter from the storm, a diversion for a brain worn by thought, the incomparable pleasure of making those happy who are dear to us. Riches are instruction, independence, dignity, confidence, charity; they are progress, and civilization. Riches are the admirable civilizing result of two admirable agents, more civilizing even than riches themselves--labour and exchange.

B. Well! now you seem to be singing the praises of riches, when, a moment ago, you were loading them with imprecations!

F. Why, don't you see that it was only the whim of an economist? I cry out against money, just because everybody confounds it, as you did just now, with riches, and that this confusion is the cause of errors and calamities without number. I cry out against it because its function in society is not understood, and very difficult to explain. I cry out against it, because it jumbles all ideas, causes the means to be taken for the end, the obstacle for the cause, the alpha for the omega; because its presence in the world, though in itself beneficial, has, nevertheless, introduced a fatal notion, a perversion of principles, a contradictory theory, which, in a multitude of forms, has impoverished mankind and deluged the earth with blood. I cry out against it, because I feel that I am incapable of contending against the error to which it has given birth, otherwise than by a long and fastidious dissertation to which no one would listen. Oh! if I could only find a patient and benevolent listener!

B. Well, it shall not be said that for want of a victim you remain in the state of irritation in which you now are. I am listening; speak, lecture, do not restrain yourself in any way.

F. You promise to take an interest?

B. I promise to have patience.

F. That is not much.

B. It is all that I can give. Begin, and explain to me, at first, how a mistake on the subject of cash, if mistake there be, is to be found at the root of all economical errors?

F. Well, now, is it possible that you can conscientiously assure me, that you have never happened to confound wealth with money?

B. I don't know; but, after all, what would be the consequence of such a confusion?

F. Nothing very important. An error in your brain, which would have no influence over your actions; for you see that, with respect to labour and exchange, although there are as many opinions as there are heads, we all act in the same way.

B. Just as we walk upon the same principle, although we are not agreed upon the theory of equilibrium and gravitation.

F. Precisely. A person who argued himself into the opinion that during the night our heads and feet changed places, might write very fine books upon the subject, but still he would walk about like everybody else.

B. So I think. Nevertheless, he would soon suffer the penalty of being too much of a logician.

F. In the same way, a man would die of hunger, who having decided that money is real wealth, should carry out the idea to the end. That is the reason that this theory is false, for there is no true theory but such as results from facts themselves, as manifested at all times, and in all places.

B. I can understand, that practically, and under the influence of personal interest, the fatal effects of the erroneous action would tend to correct an error. But if that of which you speak has so little influence, why does it disturb you so much?

F. Because, when a man, instead of acting for himself, decides for others, personal interest, that ever watchful and sensible sentinel, is no longer present to cry out, "Stop! the responsibility is misplaced." It is Peter who is deceived, and John suffers; the false system of the legislator necessarily becomes the rule of action of whole populations. And observe the difference. When you have money, and are very hungry, whatever your theory on cash may be, what do you do?

B. I go to a baker's, and buy some bread.

F. You do not hesitate about getting rid of your money?

B. The only use of money is to buy what one wants.

F. And if the baker should happen to be thirsty, what does he do?

B. He goes to the wine merchant's, and buys wine with the money I have given him.

F. What! is he not afraid he shall ruin himself?

B. The real ruin would be to go without eating or drinking.

F. And everybody in the world, if he is free, acts in the same manner?

B. Without a doubt. Would you have them die of hunger for the sake of laying by pence?

F. So far from it, that I consider they act wisely, and I only wish that the theory was nothing but the faithful image of this universal practice. But, suppose now that you were the legislator, the absolute king of a vast empire, where there were no gold mines.

B. No unpleasant fiction.

F. Suppose, again, that you were perfectly convinced of this,--that wealth consists solely and exclusively in cash; to what conclusion would you come?

B. I should conclude that there was no other means for me to enrich my people, or for them to enrich themselves, but to draw away the cash from other nations.

F. That is to say, to impoverish them. The first conclusion, then, to which you would arrive would be this,--a nation can only gain when another loses.

B. This axiom has the authority of Bacon and Montaigne.

F. It is not the less sorrowful for that, for it implies--that progress is impossible. Two nations, no more than two men, cannot prosper side by side.

B. It would seem that such is the result of this principle.

F. And as all men are ambitious to enrich themselves, it follows that all are desirous, according to a law of Providence, of ruining their fellow-creatures.

B. This is not Christianity, but it is political economy.

F. Such a doctrine is detestable. But, to continue, I have made you an absolute king. You must not be satisfied with reasoning, you must act. There is no limit to your power. How would you treat this doctrine,--wealth is money?

B. It would be my endeavour to increase, incessantly, among my people the quantity of cash.

F. But there are no mines in your kingdom. How would you set about it? What would you do?

B. I should do nothing: I should merely forbid, on pain of death, that a single crown should leave the country.

F. And if your people should happen to be hungry as well as rich?

B. Never mind. In the system we are discussing, to allow them to export crowns would be to allow them to impoverish themselves.

F. So that, by your own confession, you would force them to act upon a principle equally opposite to that upon which you would yourself act under similar circumstances. Why so?

B. Just because my own hunger touches me, and the hunger of a nation does not touch legislators.

F. Well, I can tell you that your plan would fail, and that no superintendence would be sufficiently vigilant, when the people were hungry, to prevent the crowns from going out and the corn from coming in.

B. If so, this plan, whether erroneous or not, would effect nothing; it would do neither good nor harm, and therefore requires no further consideration.

F. You forget that you are a legislator. A legislator must not be disheartened at trifles, when he is making experiments on others. The first measure not having succeeded, you ought to take some other means of attaining your end.

B. What end?

F. You must have a bad memory. Why, that of increasing, in the midst of your people, the quantity of cash, which is presumed to be true wealth.

B. Ah! to be sure; I beg your pardon. But then you see, as they say of music, a little is enough; and this may be said, I think, with still more reason, of political economy. I must consider. But really I don't know how to contrive--

F. Ponder it well. First, I would have you observe that your first plan solved the problem only negatively. To prevent the crowns from going out of the country is the way to prevent the wealth from diminishing, but it is not the way to increase it.

B. Ah! now I am beginning to see ... the corn which is allowed to come in ... a bright idea strikes me ... the contrivance is ingenious, the means infallible; I am coming to it now.

F. Now, I, in turn, must ask you--to what?

B. Why, to a means of increasing the quantity of cash.

F. How would you set about it, if you please?

B. Is it not evident that if the heap of money is to be constantly increasing, the first condition is that none must be taken from it?

F. Certainly.

B. And the second, that additions must constantly be made to it?

F.. To be sure.

B. Then the problem will be solved, either negatively or positively, as the Socialists say, if on the one hand I prevent the foreigner from taking from it, and on the other I oblige him to add to it.

F. Better and better.

B. And for this there must be two simple laws made, in which cash will not even be mentioned. By the one, my subjects will be forbidden to buy anything abroad; and by the other, they will be required to sell a great deal.

F. A well-advised plan.

B. Is it new? I must take out a patent for the invention.

F. You need do no such thing; you have been forestalled. But you must take care of one thing.

B. What is that?

F. I have made you an absolute king. I understand that you are going to prevent your subjects from buying foreign productions. It will be enough if you prevent them from entering the country. Thirty or forty thousand custom-house officers will do the business.

B. It would be rather expensive. But what does that signify? The money they receive will not go out of the country.

F. True; and in this system it is the grand point. But to ensure a sale abroad, how would you proceed?

B. I should encourage it by prizes, obtained by means of some good taxes laid upon my people.

F. In this case, the exporters, constrained by competition among themselves, would lower their prices in proportion, and it would be like making a present to the foreigner of the prizes or of the taxes.

B. Still, the money would not go out of the country.

F. Of course. That is understood. But if your system is beneficial, the kings around you will adopt it. They will make similar plans to yours; they will have their custom-house officers, and reject your productions; so that with them, as with you, the heap of money may not be diminished.

B. I shall have an army and force their barriers.

F. They will have an army and force yours.

B. I shall arm vessels, make conquests, acquire colonies, and create consumers for my people, who will be obliged to eat our corn and drink our wine.

F. The other kings will do the same. They will dispute your conquests, your colonies, and your consumers; then on all sides there will be war, and all will be uproar.

B. I shall raise my taxes, and increase my custom-house officers, my army, and my navy.

F. The others will do the same.

B. I shall redouble my exertions.

F. The others will redouble theirs. In the meantime, we have no proof that you would succeed in selling to a great extent.

B. It is but too true. It would be well if the commercial efforts would neutralize each other.

F. And the military efforts also. And, tell me, are not these custom-house officers, soldiers, and vessels, these oppressive taxes, this perpetual struggle towards an impossible result, this permanent state of open or secret war with the whole world, are they not the logical and inevitable consequence of the legislators having adopted an idea, which you admit is acted upon by no man who is his own master, that "wealth is cash; and to increase cash, is to increase wealth?"

B. I grant it. Either the axiom is true, and then the legislator ought to act as I have described, although universal war should be the consequence; or it is false; and in this case men, in destroying each other, only ruin themselves.

F. And, remember, that before you became a king, this same axiom had led you by a logical process to the following maxims:--That which one gains, another loses. The profit of one, is the loss of the other:--which maxims imply an unavoidable antagonism amongst all men.