Chapter 26

Bearing in mind the far-reaching influence of the disappearance of unlimited resources open to all men for the taking, and considering the recoil of the common man when he saw the outcome of the competitive struggle for these resources as the supply came to its end over most of the nation, we can understand the reaction against individualism and in favor of drastic assertion of the powers of government. Legislation is taking the place of the free lands as the means of preserving the ideal of democracy. But at the same time it is endangering the other pioneer ideal of creative and competitive individualism. Both were essential and constituted what was best in America's contribution to history and to progress. Both must be preserved if the nation would be true to its past, and would fulfil its highest destiny. It would be a grave misfortune if these people so rich in experience, in self-confidence and aspiration, in creative genius, should turn to some Old World discipline of socialism or plutocracy, or despotic rule, whether by class or by dictator. Nor shall we be driven to these alternatives. Our ancient hopes, our courageous faith, our underlying good humor and love of fair play will triumph in the end. There will be give and take in all directions. There will be disinterested leadership, under loyalty to the best American ideals. Nowhere is this leadership more likely to arise than among the men trained in the Universities, aware of the promise of the past and the possibilities of the future. The times call for new ambitions and new motives.

In a most suggestive essay on the Problems of Modern Democracy, Mr. Godkin has said:

M. de Tocqueville and all his followers take it for granted that the great incentive to excellence, in all countries in which excellence is found, is the patronage and encouragement of an aristocracy; that democracy is generally content with mediocrity. But where is the proof of this? The incentive to exertion which is widest, most constant, and most powerful in its operations in all civilized countries, is the desire of distinction; and this may be composed either of love of fame or love of wealth or of both. In literary and artistic and scientific pursuits, sometimes the strongest influence is exerted by a love of the subject. But it may safely be said that no man has ever labored in any of the higher colleges to whom the applause and appreciation of his fellows was not one of the sweetest rewards of his exertions.

What is there we would ask, in the nature of democratic institutions, that should render this great spring of action powerless, that should deprive glory of all radiance, and put ambition to sleep? Is it not notorious, on the contrary, that one of the most marked peculiarities of democratic society, or of a society drifting toward democracy, is the fire of competition which rages in it, the fevered anxiety which possesses all its members to rise above the dead level to which the law is ever seeking to confine them, and by some brilliant stroke become something higher and more remarkable than their fellows? The secret of that great restlessness which is one of the most disagreeable accompaniments of life in democratic countries, is in fact due to the eagerness of everybody to grasp the prizes of which in aristocratic countries, only the few have much chance. And in no other society is success more worshiped, is distinction of any kind more widely flattered and caressed.

In democratic societies, in fact, excellence is the first title to distinction; in aristocratic ones there are two or three others which are far stronger and which must be stronger or aristocracy could not exist. The moment you acknowledge that the highest social position ought to be the reward of the man who has the most talent, you make aristocratic institutions impossible.

All that was buoyant and creative in American life would be lost if we gave up the respect for distinct personality, and variety in genius, and came to the dead level of common standards. To be "socialized into an average" and placed "under the tutelage of the mass of us," as a recent writer has put it, would be an irreparable loss. Nor is it necessary in a democracy, as these words of Godkin well disclose. What is needed is the multiplication of motives for ambition and the opening of new lines of achievement for the strongest. As we turn from the task of the first rough conquest of the continent there lies before us a whole wealth of unexploited resources in the realm of the spirit. Arts and letters, science and better social creation, loyalty and political service to the commonweal,--these and a thousand other directions of activity are open to the men, who formerly under the incentive of attaining distinction by amassing extraordinary wealth, saw success only in material display. Newer and finer careers will open to the ambitious when once public opinion shall award the laurels to those who rise above their fellows in these new fields of labor. It has not been the gold, but the getting of the gold, that has caught the imaginations of our captains of industry. Their real enjoyment lay not in the luxuries which wealth brought, but in the work of construction and in the place which society awarded them. A new era will come if schools and universities can only widen the intellectual horizon of the people, help to lay the foundations of a better industrial life, show them new goals for endeavor, inspire them with more varied and higher ideals.

The Western spirit must be invoked for new and nobler achievements. Of that matured Western spirit, Tennyson's Ulysses is a symbol.

". . . I am become a name For always roaming with an hungry heart, Much have I seen and known . . . I am a part of all that I have met; Yet all experience is an arch, where thro' Gleams that untravelled world, whose margin fades Forever and forever when I move. How dull it is to pause, to make an end, To rust unburnished, not to shine in use!

* * * * *

And this gray spirit yearning in desire To follow knowledge like a shining star Beyond the utmost hound of human thought. . . . Come my friends, 'Tis not too late to seek a newer world. Push off, and sitting well in order smite The sounding furrows; for my purpose holds To sail beyond the sunset, and the baths Of all the Western stars until I die

* * * * *

To strive, to seek, to find and not to yield."

FOOTNOTES:

[290:1] Commencement Address, University of Washington, June 17, 1914. Reprinted by permission from _The Washington Historical Quarterly_, October, 1914.

XII

SOCIAL FORCES IN AMERICAN HISTORY[311:1]

The transformations through which the United States is passing in our own day are so profound, so far-reaching, that it is hardly an exaggeration to say that we are witnessing the birth of a new nation in America. The revolution in the social and economic structure of this country during the past two decades is comparable to what occurred when independence was declared and the constitution was formed, or to the changes wrought by the era which began half a century ago, the era of Civil War and Reconstruction.

These changes have been long in preparation and are, in part, the result of world-wide forces of reorganization incident to the age of steam production and large-scale industry, and, in part, the result of the closing of the period of the colonization of the West. They have been prophesied, and the course of the movement partly described by students of American development; but after all, it is with a shock that the people of the United States are coming to realize that the fundamental forces which have shaped their society up to the present are disappearing. Twenty years ago, as I have before had occasion to point out, the Superintendent of the Census declared that the frontier line, which its maps had depicted for decade after decade of the westward march of the nation, could no longer be described. To-day we must add that the age of free competition of individuals for the unpossessed resources of the nation is nearing its end. It is taking less than a generation to write the chapter which began with the disappearance of the line of the frontier--the last chapter in the history of the colonization of the United States, the conclusion to the annals of its pioneer democracy.

It is a wonderful chapter, this final rush of American energy upon the remaining wilderness. Even the bare statistics become eloquent of a new era. They no longer derive their significance from the exhibit of vast proportions of the public domain transferred to agriculture, of wildernesses equal to European nations changed decade after decade into the farm area of the United States. It is true there was added to the farms of the nation between 1870 and 1880 a territory equal to that of France, and between 1880 and 1900 a territory equal to the European area of France, Germany, England, and Wales combined. The records of 1910 are not yet available, but whatever they reveal they will not be so full of meaning as the figures which tell of upleaping wealth and organization and concentration of industrial power in the East in the last decade. As the final provinces of the Western empire have been subdued to the purposes of civilization and have yielded their spoils, as the spheres of operation of the great industrial corporations have extended, with the extension of American settlement, production and wealth have increased beyond all precedent.

The total deposits in all national banks have more than trebled in the present decade; the money in circulation has doubled since 1890. The flood of gold makes it difficult to gage the full meaning of the incredible increase in values, for in the decade ending with 1909 over 41,600,000 ounces of gold were mined in the United States alone. Over four million ounces have been produced every year since 1905, whereas between 1880 and 1894 no year showed a production of two million ounces. As a result of this swelling stream of gold and instruments of credit, aided by a variety of other causes, prices have risen until their height has become one of the most marked features and influential factors in American life, producing social readjustments and contributing effectively to party revolutions.

But if we avoid those statistics which require analysis because of the changing standard of value, we still find that the decade occupies an exceptional place in American history. More coal was mined in the United States in the ten years after 1897 than in all the life of the nation before that time.[313:1] Fifty years ago we mined less than fifteen million long tons of coal. In 1907 we mined nearly 429,000,000. At the present rate it is estimated that the supply of coal would be exhausted at a date no farther in the future than the formation of the constitution is in the past. Iron and coal are the measures of industrial power. The nation has produced three times as much iron ore in the past two decades as in all its previous history; the production of the past ten years was more than double that of the prior decade. Pig-iron production is admitted to be an excellent barometer of manufacture and of transportation. Never until 1898 had this reached an annual total of ten million long tons. But in the five years beginning with 1904 it averaged over twice that. By 1907 the United States had surpassed Great Britain, Germany, and France combined in the production of pig-iron and steel together, and in the same decade a single great corporation has established its domination over the iron mines and steel manufacture of the United States. It is more than a mere accident that the United States Steel Corporation with its stocks and bonds aggregating $1,400,000,000 was organized at the beginning of the present decade. The former wilderness about Lake Superior has, principally in the past two decades, established its position as overwhelmingly the preponderant source of iron ore, present and prospective, in the United States--a treasury from which Pittsburgh has drawn wealth and extended its unparalleled industrial empire in these years. The tremendous energies thus liberated at this center of industrial power in the United States revolutionized methods of manufacture in general, and in many indirect ways profoundly influenced the life of the nation.

Railroad statistics also exhibit unprecedented development, the formation of a new industrial society. The number of passengers carried one mile more than doubled between 1890 and 1908; freight carried one mile has nearly trebled in the same period and has doubled in the past decade. Agricultural products tell a different story. The corn crop has only risen from about two billion bushels in 1891 to two and seven-tenths billions in 1909; wheat from six hundred and eleven million bushels in 1891 to only seven hundred and thirty-seven million in 1909; and cotton from about nine million bales in 1891 to ten and three-tenths million bales in 1909. Population has increased in the United States proper from about sixty-two and one-half millions in 1890 to seventy-five and one-half millions in 1900 and to over ninety millions in 1910.

It is clear from these statistics that the ratio of the nation's increased production of immediate wealth by the enormously increased exploitation of its remaining natural resources vastly exceeds the ratio of increase of population and still more strikingly exceeds the ratio of increase of agricultural products. Already population is pressing upon the food supply while capital consolidates in billion-dollar organizations. The "Triumphant Democracy" whose achievements the iron-master celebrated has reached a stature even more imposing than he could have foreseen; but still less did he perceive the changes in democracy itself and the conditions of its life which have accompanied this material growth.

Having colonized the Far West, having mastered its internal resources, the nation turned at the conclusion of the nineteenth and the beginning of the twentieth century to deal with the Far East to engage in the world-politics of the Pacific Ocean. Having continued its historic expansion into the lands of the old Spanish empire by the successful outcome of the recent war, the United States became the mistress of the Philippines at the same time that it came into possession of the Hawaiian Islands, and the controlling influence in the Gulf of Mexico. It provided early in the present decade for connecting its Atlantic and Pacific coasts by the Isthmian Canal, and became an imperial republic with dependencies and protectorates--admittedly a new world-power, with a potential voice in the problems of Europe, Asia, and Africa.

This extension of power, this undertaking of grave responsibilities in new fields, this entry into the sisterhood of world-states, was no isolated event. It was, indeed, in some respects the logical outcome of the nation's march to the Pacific, the sequence to the era in which it was engaged in occupying the free lands and exploiting the resources of the West. When it had achieved this position among the nations of the earth, the United States found itself confronted, also, with the need of constitutional readjustment, arising from the relations of federal government and territorial acquisitions. It was obliged to reconsider questions of the rights of man and traditional American ideals of liberty and democracy, in view of the task of government of other races politically inexperienced and undeveloped.

If we turn to consider the effect upon American society and domestic policy in these two decades of transition we are met with palpable evidences of the invasion of the old pioneer democratic order. Obvious among them is the effect of unprecedented immigration to supply the mobile army of cheap labor for the centers of industrial life. In the past ten years, beginning with 1900, over eight million immigrants have arrived. The newcomers of the eight years since 1900 would, according to a writer in 1908, "repopulate all the five older New England States as they stand to-day; or, if properly disseminated over the newer parts of the country they would serve to populate no less than nineteen states of the Union as they stand." In 1907 "there were one and one-quarter million arrivals. This number would entirely populate both New Hampshire and Maine, two of our oldest States." "The arrivals of this one year would found a State with more inhabitants than any one of twenty-one of our other existing commonwealths which could be named." Not only has the addition to the population from Europe been thus extraordinary, it has come in increasing measure from southern and eastern Europe. For the year 1907, Professor Ripley,[316:1] whom I am quoting, has redistributed the incomers on the basis of physical type and finds that one-quarter of them were of the Mediterranean race, one-quarter of the Slavic race, one-eighth Jewish, and only one-sixth of the Alpine, and one-sixth of the Teutonic. In 1882 Germans had come to the amount of 250,000; in 1907 they were replaced by 330,000 South Italians. Thus it is evident that the ethnic elements of the United States have undergone startling changes; and instead of spreading over the nation these immigrants have concentrated especially in the cities and great industrial centers in the past decade. The composition of the labor class and its relation to wages and to the native American employer have been deeply influenced thereby; the sympathy of the employers with labor has been unfavorably affected by the pressure of great numbers of immigrants of alien nationality and of lower standards of life.

The familiar facts of the massing of population in the cities and the contemporaneous increase of urban power, and of the massing of capital and production in fewer and vastly greater industrial units, especially attest the revolution. "It is a proposition too plain to require elucidation," wrote Richard Rush, Secretary of the Treasury, in his report of 1827, "that the creation of capital is retarded rather than accelerated by the diffusion of a thin population over a great surface of soil."[317:1] Thirty years before Rush wrote these words Albert Gallatin declared in Congress that "if the cause of the happiness of this country were examined into, it would be found to arise as much from the great plenty of land in proportion to the inhabitants which their citizens enjoyed as from the wisdom of their political institutions." Possibly both of these Pennsylvania financiers were right under the conditions of the time; but it is at least significant that capital and labor entered upon a new era as the end of the free lands approached. A contemporary of Gallatin in Congress had replied to the argument that cheap lands would depopulate the Atlantic coast by saying that if a law were framed to prevent ready access to western lands it would be tantamount to saying that there is some class which must remain "and by law be obliged to serve the others for such wages as they pleased to give." The passage of the arable public domain into private possession has raised this question in a new form and has brought forth new answers. This is peculiarly the era when competitive individualism in the midst of vast unappropriated opportunities changed into the monopoly of the fundamental industrial processes by huge aggregations of capital as the free lands disappeared. All the tendencies of the large-scale production of the twentieth century, all the trend to the massing of capital in large combinations, all of the energies of the age of steam, found in America exceptional freedom of action and were offered regions of activity equal to the states of all Western Europe. Here they reached their highest development.

The decade following 1897 is marked by the work of Mr. Harriman and his rivals in building up the various railroads into a few great groups, a process that had gone so far that before his death Mr. Harriman was ambitious to concentrate them all under his single control. High finance under the leadership of Mr. Morgan steadily achieved the consolidation of the greater industries into trusts or combinations and effected a community of interests between them and a few dominant banking organizations, with allied insurance companies and trust companies. In New York City have been centered, as never before, the banking reserves of the nation, and here, by the financial management of capital and speculative promotion, there has grown up a unified control over the nation's industrial life. Colossal private fortunes have arisen. No longer is the per capita wealth of the nation a real index to the prosperity of the average man. Labor on the other hand has shown an increasing self-consciousness, is combining and increasing its demands. In a word, the old pioneer individualism is disappearing, while the forces of social combination are manifesting themselves as never before. The self-made man has become, in popular speech, the coal baron, the steel king, the oil king, the cattle king, the railroad magnate, the master of high finance, the monarch of trusts. The world has never before seen such huge fortunes exercising combined control over the economic life of a people, and such luxury as has come out of the individualistic pioneer democracy of America in the course of competitive evolution.

At the same time the masters of industry, who control interests which represent billions of dollars, do not admit that they have broken with pioneer ideals. They regard themselves as pioneers under changed conditions, carrying on the old work of developing the natural resources of the nation, compelled by the constructive fever in their veins, even in ill-health and old age and after the accumulation of wealth beyond their power to enjoy, to seek new avenues of action and of power, to chop new clearings, to find new trails, to expand the horizon of the nation's activity, and to extend the scope of their dominion. "This country," said the late Mr. Harriman in an interview a few years ago, "has been developed by a wonderful people, flush with enthusiasm, imagination and speculative bent. . . . They have been magnificent pioneers. They saw into the future and adapted their work to the possibilities. . . . Stifle that enthusiasm, deaden that imagination and prohibit that speculation by restrictive and cramping conservative law, and you tend to produce a moribund and conservative people and country." This is an appeal to the historic ideals of Americans who viewed the republic as the guardian of individual freedom to compete for the control of the natural resources of the nation.

On the other hand, we have the voice of the insurgent West, recently given utterance in the New Nationalism of ex-President Roosevelt, demanding increase of federal authority to curb the special interests, the powerful industrial organizations, and the monopolies, for the sake of the conservation of our natural resources and the preservation of American democracy.