Chapter 27

Germany, like the rest of us, has been obliged to face the various social problems that arise from original sin, but which vote-getters are pleased to ascribe to industrial progress. In our country, with a population of some thirty to the square mile, while in the kingdom of Saxony the density of the population is 830.6 to the square mile, it is hard to believe that we suffer from overcrowding so much as from overindulgence, wastefulness, and fussy legislation. None the less, we have 42 institutions for the feeble-minded, 115 schools and homes for the deaf and blind, 350 hospitals for the insane, 1,200 refuge houses, 1,300 prisons, 1,500 hospitals, and 2,500 almshouses. We have 2,000,000 annually who are cared for in homes and hospitals, 300,000 insane and feeble-minded, 160,000 blind or deaf, 80,000 prisoners, and 100,000 paupers in almshouses and out, and we spend each year about $100,000,000 in taking care of them. We are as wasteful and careless in these matters as we have been until very lately in our forestry methods.

In the early days of the empire Germany undertook to deal with these social problems. The German Empire took over some of the principles of socialism, but retained, and retains absolutely, the power of applying those principles. Bismarck himself admitted that his advocacy of the industrial insurance laws was selfish. "My idea was to bribe the working classes, or shall I say to win them over, to regard the state as a social institution existing for their sake and interested in their welfare." Whatever else may have resulted, discontent, whether well-founded or not, is not now under discussion, has not been lessened. In 1912 more than one-half of the electors voted "discontented" as over against the less than one-half who voted "contented." The mass of the people may be better clothed, better fed, better housed, better cared for in sickness and in old age, than formerly, but they are not satisfied. No state can go much further than Germany has gone along the lines of state interference, guidance, and control of the personal affairs of its people, and nothing is more surprising about the whole matter than the general acceptance in America and in England of such legislation as having proved altogether successful. I doubt if any intelligent German considers these various pension schemes as altogether successful. I can vouch for it that many German statesmen make no such claims in private, whatever they may say in public.

Some of the barren figures, needing no comment, are of interest in this connection. The cost of insurance in Germany has risen to over $500,000 a day, the total cost of state insurance exceeding $250,000,000 a year at the present time, a fairly heavy tax upon small employers. In 1909, of 422,076 decisions by the industrial unions, 76,352 were appealed against, and of the 100,000 arbitration judgments, 22,794 were appealed against. So difficult is it to settle to the claimant's satisfaction the amount of salve necessary for his particular wound when, as is true in these cases, the salve is a grant of money for a longer or shorter period!

In 1886 there were, roughly, 100,000 accidents reported and 10,000 compensated, but as they became more thoroughly acquainted with the game, the figures rose in 1908 to 662,321 accidents and 142,965 compensations.

The vast increase of the claims for trifling injuries is shown by the fact that in twenty years from 1888 to 1908, despite the increase of the total compensation from $1,475,000 to $38,715,000, the average compensation per accident fell from $58.50 to $38.83. In the two years 1907 to 1909 the number of members of those state-insured increased by 380,819, while the days of sickness increased by 26,219,632! The cost of sickness insurance alone rose from $42,895,000 in 1900 to $83,640,000 in 1909. The Workmen's Compensation Act in England costs, for management, commission, legal and medical fees, $20,000,000 a year, while the compensation paid out was $13,500,000. The insurance companies calculate that for every $500 of compensation, the employers have paid $750!

It is becoming increasingly evident that the logical result of state charity, or call it state insurance to avoid controversy, over a large field, and including millions of beneficiaries and claimants, is that the army of officials, the expenses of administration, and the payments themselves must sooner or later break the back of the state morally, politically, and financially. It rapidly increases parasitism among the receivers; makes a powerful though indifferent army of state servants of the distributers; and loses financially to the state far more in expense of administration, and loss of useful labor of the army of civil servants, than it gains by the loss to the state of individual incapacity resulting in pauperism and invalidism, which must be cared for. To put it briefly, it is far more dangerous to the state to tell the individual that he shall be taken care of than to tell him that he must shift for himself. As for the effect upon the individual, it is a lowering medicine, making the patient gradually dependent upon the drug, and bringing him finally to the incurable invalidism of surly apathy. To change Patrick Henry's fiery peroration slightly: Give me liberty or in the end you give me moral and political death.

Students of the various forms of this modern political nostrum, of getting rid of the fools who are rich by deceiving the fools who are poor, will remember the decree of the Provisional Government of the French Republic in 1848: "This Government undertakes to guarantee the existence of the workman by work. It undertakes to guarantee work to every citizen." On March 9 public works were started and 3,000 men employed. March 15 saw 14,000 on the pay-rolls, most of them unoccupied because there was no suitable work. Those not working received "inactivity pay" of a franc a day. The end of April saw 100,000 on the pay-rolls. In May a minister ventured to suggest that it was the workman's duty to work! There were murmurs of disapproval, but the public treasury was nearing bankruptcy, and on June 22 an order was promulgated, that all of these workmen between the ages of seventeen and twenty-five were to enlist in the army. An insurrection followed this order that workmen should work, and 3,000 citizens were shot down in the streets, and another 3,000 were sent to penal colonies in Algeria. The French are a logical people. The state promised suitable work; that always means, from the point of view of the worker, agreeable work, and not too fatiguing at that. Of course, no such thing is possible, and the end was riot, murder, and penal servitude. The state can no more provide suitable and agreeable methods of livelihood for its citizens, than it can provide them with a duty-loving, unenvious, and honest disposition. As I have remarked elsewhere, the only thing that stands between state socialism and the instant solution of all our social problems is human nature! This mongrel demand for an artificial equality, is worse, because more degrading than any tyranny of church or state even. Every man wants superiority and distinction for himself, he only wants equality, invisibility, and inarticulateness for others.

When some such system as this is put to work in Ireland, I shall envy every physician in Ireland, for he will live in a joyous round of farces such as the world has never provided before for the lovers of the humorous. Already Ireland, with only 701,620 electors, out of a total of 8,058,025 in the United Kingdom, is represented in the House of Commons by 103 members out of the total of 670; and out of the 935,000 old-age pensioners on the lists at the beginning of 1912, Ireland had 202,810, and was drawing $12,943,000 out of the total paid of $59,445,500, while the total population of Ireland was 4,368,599, and of the rest of the United Kingdom 40,533,557! Further, as an example of the slight value of education in the game of politics, out of the 41,710 illiterate voters in the United Kingdom, Ireland has 22,515. Long life to Ireland for her gallant attack upon humbuggery with humbuggery! And this is, too, the little island that sent the Wellesleys, the Pallisers, the Moores, the Eyres, the Cootes, the Napiers, the Wolseleys, and Roberts to fight England's battles, and half the officers and privates who conquered India; which in the Seven Years' War furnished Austria with her best generals (Brown, Lacy, O'Donnell), and whose exiles, called the "Wild Geese," flocked to the standard of Washington in 1776. This is proof positive that they are not naturally a parasitic race.

Even in Germany, where there is not a tithe of the impish humour that exists in Ireland, the Socialists have so misused the immense bureaucracy that must carry on the mere clerical work of insurance, that a new law passed the Reichstag in June, 1911, containing several hundred amendments. Employers must now pay one-half instead of one-third of the sickness insurance premiums, which gives them one-half instead of one-third of the management authority.

The management had degenerated into a mere game of politics, with the Socialists in such disproportionate control that they were rapidly turning the insurance machinery into a well-organized body for the exploitation of their own political doctrines; and the employer and the state were helpless. It is, therefore, amusing to the man on the spot to find certain English writers offering as proof of the success of the insurance laws the fact that the Socialists, who once opposed, are now satisfied with them. Of course they are satisfied with them. They have had a war-chest and weapons put into their hands such as they have never had before. Nor have these detailed parchment solutions of social questions done away with all the tramps, poor, sick, and destitute. Over a million persons passed through the municipal night shelters in Berlin during the last year; and there are still admittedly some 5,000 tramps in Germany. The vicious circle is in evidence in Germany as elsewhere. It might be possible to regulate men's earning power by legislation, but even when this colossal task is done, there must follow the regulation of the spending power to make it complete. What conceivable legislative regulation can efface the difference between what A, B, and C will get out of five dollars once they have them! That is the real problem, but no one proposes a solution of it. A will use his five dollars to make him more powerful, B will use his in dissipation, and C will lose his. How is that to be regulated? And without that regulation you will have rich men and tramps all over again.

In urban and rural districts containing over 10,000 inhabitants, some $40,000,000 was expended for sick and poor relief, and this does not include the hundreds of districts with fewer than 10,000 inhabitants for which there are no figures. Even the wholly admirable Elberfeld system of charity, known all over the world to charity-workers, which is, briefly, investigation of cases by voluntary workers personally and privately, and each dealing with a small number, has not solved the problem. There were 1,537 strikes in Germany in 1909, and 2,109 in 1910. In 1910, 8,269 industrial plants were affected, in which 372,119 persons were employed, and 2,209 plants were obliged to shut down entirely. There were as many as 154,093 persons on strike at the same time. In 1910 there were also 1,121 lock-outs, affecting 10,381 plants and 314,988 persons.

Here again, as in the case of the temperament of the German people, one must look deeper than the average traveller has the time or the necessary experience back of him to do, in order to see and to sift the facts. Scores of travellers have told me: "I have never seen a tramp, a beggar, a drunken man in Germany." I can only reply that I have seen tramps at large, and colonies of them besides; that I have seen hundreds of the poverty-stricken and diseased; that there are more than thirty drunkards' homes in Germany; and that between 1879 and 1901 the number of persons under treatment for alcoholism had increased from 12,000 to 65,000, an increase of 500 per cent.; the cases of heart disease and rheumatism increased by 600 per cent.; while the total population had increased 33 per cent. There are 125,000 patients admitted to the public and private lunatic asylums of Germany, and there are accommodations in public and private hospitals for 1,300,000 in-patients passing through them in the year; in 1909, 544,183 persons were tried before the courts of first instance and convicted, of whom 49,697 were between twelve and eighteen years of age; and in the same year there were 183,700 illegitimate births and 14,225 suicides, or 22.3 per 100,000 of the population. The poor law authorities state that the cost to the empire of alcoholism in all its forms of poverty, crime, and disease amounts to some $13,000,000 a year. In 1910 Germany consumed 1,704 million gallons of malt liquors, the United States, 1,851 million gallons; of beer we consumed 20.09 gallons and Germany 26.47 gallons per capita. Germany's drink bill even ten years ago was $560,000,000 for beer, $140,000,000 for spirits, and $125,000,000 for wine. There is a wine, beer, or spirit dealer in Berlin for every 157 of the inhabitants, men, women, and children. It has always been the avowed policy of autocracies to atone for the lack of political freedom by lax regulations in regard to moral matters. The citizen is imprisoned for insulting the state, but he may insult his own person by dissipation up to any limit, this side of disorderliness in public. Drinking, gambling, and other forms of vice are provided for the citizens of Berlin comfortably and, comparatively speaking, cheaply. Lotteries are sanctioned by all the states, and they use this incentive to the worst form of gambling for all sorts of purposes, from repairing churches to building patriotic monuments, and replenishing the treasury.

This is by no means an attack upon Germany or upon German methods in these matters; probably both in America and in England we are worse off in these respects than are they, but unprejudiced people will agree that it is high time to learn that not even German methods have solved these complicated and heatedly argued questions of social reform. Germany, due to its compactness and well-drilled and subservient population, should succeed if any nation can, for social legislation has never been in stronger or wiser hands or more admirably and honestly administered. In America such opportunities offered to the on-politics-living big and little bosses would lead swiftly to anarchy. We have laws enough now, but the baser politicians protect our city tramps, our gunmen, our decadents, our incendiaries against our elected magistrates, in order that they may keep ready to hand, and increase, the raw material of a purchasable vote, by the domination and protection of which they keep themselves in power. That is the whole secret of our municipal misgovernment wherever it exists, and also the reason for our barbarous crimes. We have a cowed magistracy seeking re-election from the manipulators of the purchasable voters.

The truth is that the Sacculina method of social reform is nowhere a success, certainly not in Germany. The Sacculina is a crustacean. It attaches itself in the form of a simple sac to the crab, into which its blood-vessels extend. It loses its power of locomotion and its limbs disappear. It lives at the expense of the crab; activity is not necessary, and it becomes the highest type of parasite, with no organs except ovaries and blood-vessels. It can propagate, but has lost all power or desire to do anything else. We have succeeded in producing no small number of people of the Sacculina type by playing social and political crab for them, and we are on the way to produce more, until the crab is exhausted and the Sacculina is shaken into the water to sink or swim for himself. "Charity causes half the suffering she relieves, but she can never relieve half the suffering she causes."

Compulsory insurance was tried in the practical and economical Swiss city of Basle and given up, because it was found that each year it was the same small class who reaped the benefit of the insurance. The crab gained nothing and the Sacculina became rapidly impotent. Basle, if I mistake not, will have imitators, inclined to the philosophy of Frederick the Great, who was surely no enemy to rational progress, but who once said: "Depuis bien longtemps je suis convaincu qu'un mal qui reste vaut mieux qu'un bien qui change."

A good deal of modern legislation is due to fatigue, and some of the rest to ill-founded apprehension, that unless there is a change of some kind the masters of the legislators will discharge them, because they do not furnish enough novelties. In the meantime nobody is bold enough to proclaim to the restless ones, seeking ever some new thing, that there is nothing original except what has been forgotten. The originality of such students of history, and panderers to majorities, as the leaders of the discontented in England, Germany and in America, dates back to about the time of the fall of Pericles and the Athenian republic.

The cry of "discontent" has become a fetich among unthinking politicians. We are all, thank God, discontented, and a poor lot we should be if we were not. The workingman's discontent has been over-emphasized, for the reason that what he demands is material, ponderable, for sale, easy to see, and not far out of the reach of one's hand. He wants more rooms, more meat, more tobacco, more beer, more leisure. I am glad he does want them, and let me say just once, in answer to my detractors along these lines, that the workingman has no heartier champion than am I. I applaud his discontent just as I cherish my own, for "it is precisely this that keeps us all alive!" It is just because I wish him well that every ounce of my influence and experience are his, to open his eyes to the demagogues who fatten upon him, fool him, rope him, throw him and brand him, as they have done in Germany, as they are attempting to do in England, and as they will shortly begin to do in America. State socialism means slavery for him, with an army of officials living on him. He will be given so much bread, and beer, and meat, and tobacco; so much music, theatre, and literature; and there will grow up an army whose business it will be to keep him in order, and to cut him down if he revolts, as was done by the police in one of the suburbs of Berlin not long ago. The German workman is already so entangled in the ropes of insurance, so harried by petty officials, so branded by the police, and he has permitted to increase such a host of guardians, that revolt or revolution is practically impossible. Counting the army, navy, and officials, there are said to be three million officials, great and small in Germany; and there are fourteen million electors, or, roughly, one policeman to every five adults. And those three million policemen, armed with lethal and legal weapons, are inflexibly and unalterably for no change. Does the workingman ever stop to think that those officials draw salaries amounting to something like $1,200,000,000 a year, and is he still fool enough to think that he does not pay those salaries to these slave-drivers! I have said that the population is well fed, well clothed, and well looked after. Of course they are. No slave-owner so maltreats his slaves that they cannot work for him! But is man fed by bread alone, even in the sugared form of music and theatricals?

If the socialist Pygmalion ever succeeds in bringing his statue to life, how she will scorn him, hate his suffocating environment, wish for the wealth and softness he cannot give, desert him, begging to return to her marble tomb again.

Long life to discontent, say I; but is the workingman such a fool that his eyes are not opened when a man of Bismarck's way of thinking, when an autocrat like the Emperor have favored state socialism! Does he not see that socialism is the neatest hangman of them all to strangle his discontent! Does he not see the demagogue gradually assuming the features and the powers of the tyrant! Tyranny is not alone the prerogative of an aristocracy. "It is the place of a court to make its servants insignificant. If the people should fall into the same humor, and should choose their servants on the same principles of mere obsequiousness and flexibility, and total vacancy and indifference of opinion in all public matters, then no party of the state will be sound, and it will be vain to think of saving it." Thus writes Burke, the champion of our American revolt against his own country. The electors, now so flattered by the smooth phrases of their tyrants disguised as liberators, will one day be aghast to find themselves in a veritable house of correction paid for from their own savings. They will have learnt then, at last, that you cannot get rid of the fools who are rich by deceiving the fools who are poor; and corporalism will be found to be a harsher, fussier, a more meddlesome and a more indifferent tyrant than even feudalism.

Even at the Krupp works at Essen, and the various branches elsewhere, where there is the most elaborate combination of Lady Bountiful and successful business anywhere in the world, men are not satisfied. If they are not contented there, then nowhere in this world will the workingman be contented. The Krupp business employs some 70,000 persons. In the particular Essen works, for a hundred years, there has never been a strike, though others of their employees elsewhere have used the strike. Though the Cadburys and Levers and Taylors, in England, the Armours, the United States Steel Corporation, the National Cash Register Company, the Procter and Gamble Company, the General Electric Company, and others in America, and the famous and successful adoption of co-operation in Monsieur Godin's iron foundry at Guise, in France, have worked along the lines of recognition of their workmen's right to participate in the profits, there is nothing on such an elaborate scale as at Essen, under the regime of the Krupps.

From 1904 to 1910 the Krupps spent, for beneficial institutions of all kinds, $14,250,000, or 56 per cent. of the dividends during that time. I have passed many hours at Essen, and seen thoroughly, from cellar to attic, this truly noble institution for the comfortable and safe guardianship of men, women, and children who are at the same time factors in a huge and successful industrial enterprise. There are schools, technical schools, hospitals, convalescent homes, a library with 71,000 volumes, theatre, orchestra, band, lectures, concerts, pension and insurance funds, lodgings for bachelors, tenements and dwellings for married people, separate cottages for widows and widowers too old for work, and every opportunity, with a high rate of interest, for saving. There is in existence a co-operative store, as well managed as the co-operative stores at Tuxedo Park, and with much the same system of rebates. There are bathing facilities, gymnasium, a boat club, a system of providing hot meals from a central kitchen, reading-rooms and smoking-rooms. There is invested, not including the value of the land, which has risen enormously in value, over $12,500,000 in houses for the working-people, the return on the money being about 2 3/4 per cent. It would require volumes -- indeed, two bulky volumes were issued last year by the company to celebrate the hundredth anniversary of the foundation of the Krupp works -- to describe merely the machinery for making the people comfortable.