Part 11

Now, the purpose of this regulation had been to save and to provide the government with the funds needed for the war. That was well enough so long as there was something to save. But the time was come in which the governmental effort at saving was futile endeavor. There was nothing that could be saved any more. Surpluses had ceased to be. Production no longer equaled consumption, and when that state of things comes crumbs and scraps disappear of themselves.

Once I had to have a pair of heels straightened. I had no trouble finding a cobbler. But the cobbler had no leather.

"Surely," I said, "you can find scraps enough to fix these heels!"

"But, I can't, sir!" replied the man. "I cannot buy scraps, even. There is no more leather. I am allowed a small quantity each month. But what I had has been used up long ago. If you have another old pair of shoes, bring them around. I can use part of the soles of them to repair the heels, and for the remainder I will pay with my labor. I won't charge you anything for mending your shoes."

I accepted the proposal and learned later that the cobbler had not made so bad a bargain, after all.

A similar policy had to be adopted to keep the Central populations in clothes. Germany, Austria-Hungary, Bulgaria, and Turkey produce considerable quantities of wool, flax, silk, and cotton. But what they produce was not enough to go around, and the men at the front were wearing out their uniforms at an alarming rate. The military authorities felt that nothing would be gained by making the uniforms of poor cloth. The wear and tear on the fabric was severe. Labor in the making and distribution of the uniforms could be saved only by using the best materials available.

For the civilians it became necessary to wear shoddy. And to obtain shoddy every scrap must be saved. The time came when an old all-wool suit brought second-hand as good a price as a new suit fresh from the mill and the tailor shop. With the addition of a little new fiber that old suit might make two new ones. The old material was "combed" into wool again, and to this was added some new wool, cotton, or silk, and "new" goods appeared again on the counter.

The "I-cash" never had done such business before. The attics and cellars were ransacked, and since those who had most old clothing to sell bought hardly any at all now, the pinch of the war in clothing was really never felt very much by the poor. To prevent the spread of contagious diseases the several governments saw to it that the shoddy was thoroughly sterilized.

But economies of that sort are more or less automatic and lie within the realm of supply and demand. Unchecked, they may also become the cause of economic waste. The time comes when shoddy is an absolute loss. When fibers are used over and over, together with new elements, the oldest of them finally cease to have value. That means that the fabric does not have the wearing qualities which will give economic compensation for the labor spent on it and the price asked from the consumer. The stuff may be good to look upon, but in times of war that is not essential.

The profiteer found a fine field in the manufacture of shoddy. All first-hand shoddy he would sell as new material, and before he admitted that a certain piece of cloth was "indifferent" in quality, it had to be poor indeed. He would ask a good price for a suit that might fall to pieces in the first rain, and the consumer was left to do the best he could with the thing. When the consumer complained he would be told that the "war" was responsible, and the consumer, knowing in a general and superficial manner that things were indeed scarce, would decide to be reasonable.

But the government could not take that easy view. Labor which might have been put to better use had been expended in the making of that shoddy, and now the fabric served no good purpose. That had to be avoided. It was far better to abandon fiber of this sort than to have it become the cause of waste in labor and the reason for further discontent. Labor that results in nothing more than this is non-productive, and the governments of Central Europe knew only too well that they had no hands to spare for that kind of unavailing effort.

I ran into a case of this sort in Bohemia. A large mill had turned out a great deal of very poor shoddy. The cloth looked well, and, since wool fiber newly dyed makes a good appearance even long after its wearing qualities have departed forever, the firm was doing a land-office business. All went well until some of the fine cloth got on the backs of people. Then trouble came. Some of the suits shrank when wet, while others did the very opposite. The matter came to the attention of the authorities.

Experts in textiles examined the cloth. Some of the output was found to contain as much as 60 per cent. old fiber, and there was no telling how many times this old fiber had been made over. It was finally shown that, had the manufacturer been content with a little less profit, he could have converted the new fiber--which, by the way, he had obtained from the government Fiber Central--into some thirty thousand yards of first-class shoddy under a formula that called for 65 per cent. new fiber and 35 per cent. old. As it was, he had turned the good raw material into nearly fifty-two thousand yards of fabrics that were not worth anything and he had wasted the labor of hundreds of men and women besides.

The man had been trying to make use of crumbs and scraps for his own benefit. Personal interests had led, in this instance, to an attempt to convert an economic negative into a positive. The useless fiber was a minus which no effort in plus could cause to have any other value than that which this profit-hunter saw in it. By the rational economist the shoddy had been abandoned, and all effort to overcome the statics of true economy, as here represented by the unserviceableness of the fiber for the use to which it had been assigned, was bound to be an economic waste.

Cases such as these--and there were thousands of them--showed the authorities that there was danger even in economy. The crumbs and scraps themselves were useless in the end. Beyond a certain point all use of them resulted in losses, and that point was the minimum of utility that could be obtained with a maximum of effort. The economic structure could not stand on so poor a sand foundation.

But the several governments were largely responsible for this. They had regulated so much in behalf of economy that they had virtually given the economic shark _carte blanche_.

There was a season when I attended a good many trials of men who had run afoul of the law in this manner. They all had the same excuse. Nothing had been further from their minds than to make in times such as these excessive profits. They would not think of such a thing. If they had used poor materials in the things they manufactured, it was due entirely to their desire to stretch the country's resources. In doing that they had hoped to lighten the burden of the government. Conservation had become necessary and everybody would have to help in that. They had been willing to do their bit, and now the authorities were unreasonable enough to find fault with this policy.

At first many a judge had the wool pulled over his eyes in that manner. But in the end the scheme worked no longer. Usually the limit of punishment fell on the offender.

Abuses of this sort had much to do with an improvement in conservation methods. So far as the textile industry was concerned it led to the control by the government Raw-Material Centrals, which were established rather loosely at the beginning of the war, of all fibers. The ragman thereafter turned over his wares to these centrals, and when a spinner wanted material he had to state what he wanted it for and was then given the necessary quantities in proportions. That helped, and when the government took a better interest in the goods manufactured this avenue of economic waste was closed effectively. With these measures came the clothing cards for the public. After that all seemed well. The poorer qualities of cloth disappeared from the market overnight, and a suit of clothing was now sure to give fair value for the price.

I have made use of this example to illustrate what the factors in regulation and conservation were at times, and how difficult it was to unscramble the economic omelet which the first conservation policies had dished up.

There were other crumbs and scraps, however. Not the least of them was the socio-economic organism itself. That sensitive thing had been doctored so much that only a major operation could again put it on its feet. Economy faddists and military horse-doctors alike had tried their hands on the patient, and all of them had overlooked that the only thing there was wrong with the case was malnutrition. Everybody was trying to get the usual quantities and qualities of milk from a cow that was starving. Poor Bossy!

Man lives not by food alone; nor does society. It takes a whole lot of things to run a state. While the government had already in its grasp all the distribution and consumption of food, there were many things it did not care to interfere with, even if they were almost as important as food. These things were the products of industry, rather than the fruits of the fields, though usually, as is natural, it was difficult to draw a strong line of demarcation in the division of spheres. In social economy that has always been so. To get the true perspective, take a dozen pebbles, label them food, fuel, clothing, and whatever else occurs to you, and then throw the pebbles in the pond. You will find that the circular wavelets caused by the pebbles will soon run into and across one another, and if by chance you have followed the waves of food you will notice that while they have been broken by the impact of the others they still remain discernible.

Into the rippling pond the several governments had each thrown the cobblestones of regulation. The food, fuel, and clothing ripples were still there, of course, but they had been so obliterated that it was now difficult to trace them on the regulation waves.

But the waves, too, subsided, and on the backwash of them the authorities read lessons which suggested saner methods--methods whose conception and application were attended by a better regard for the nature of the operation, be this production, distribution, or consumption.

The saving of crumbs and scraps had not been without its value. It tended to make men short-sighted, however. The governments of Central Europe wanted to limit consumption to the absolutely necessary, but overlooked that their _modus operandi_ gave cause to serious losses. The various authorities did not wish to interfere too much with normal currents of economic life. That was well enough in a way, but had disastrous consequences. A shortage in the necessities of life was the great fact of the day. It could be met only by restricting consumption. But the machinery of this restriction was a haphazard thing. It promoted hoarding.

There have been those who have condemned the hoarder in the roundest of terms. I am not so sure that he deserves all of the anathemas that have been hurled at him. When a government shouts day in and day out that the worst will come to pass if everybody does not save the crumbs, the more easily alarmed are bound to think only of themselves and of their own. High prices will cease to be a deterrent, for the reason that war brings only too many examples of the fact that only food and not money will sustain life. To act in accordance with this may be a weakness, but it is also along the lines of a natural condition, if self-preservation be indeed the first law of nature. Soon there are found those who promote and pamper this weakness for a profit. Food is then stored away by the majority. Some will waste much of it in over-consumption, while more will permit the food to spoil by improper storage methods, especially when the food has to be secreted in cellars and attics, wardrobes and drawers, as happens when government by inspection becomes necessary. But of this I have spoken already in its proper place.

XI

MOBILIZING THE PENNIES

Food-regulators will be wroth, I suppose, if I should state that the consumption of life's necessities can be regulated and diminished for its own sake, and that high prices are not necessarily the only way of doing this. At the same time I must admit that prices are bound to rise when demand exceeds supply. In our system of economy that is a natural order of affairs. But this tendency, when not interfered with, would also result in a quick and adequate betterment in wages. In Central Europe, however, the cost of living was always about 50 per cent. ahead of the slow increase in earnings. That 50 per cent. was the increment which the government and its economic minions needed to keep the war going. What regulation of prices there was kept this in mind always. In order that every penny in the realm might be mobilized and then kept producing, no change in these tactics could be permitted.

The food shark and price-boosting middleman were essential in this scheme, and when these were dropped by the government, one by one, it was nothing but a case of:

The Moor has done his duty, the Moor can go.

Elimination of the middleman worked upward, much as does a disease that has its bed in the slums. When the consumer had been subjected to the limit of pressure, the retailer felt the heavy hand of the government. It got to be the turn of the wholesaler and commission-man, and in October of 1916, the period of which I speak here, only the industrial and commercial kings and the banking monarchs were still in favor with the government. The speculators then operating were either the agents of these powers or closely affiliated with them.

In the fall of 1916 the war system of national economy had taken the shape it has to-day. Food had become the irreducible minimum. Not alone was the quantity on hand barely sufficient to feed the population, but its price could no longer be increased if the masses were not to starve for lack of money instead of lack of food. The daily bread was now a luxury. Men and women had to rise betimes and work late into the night if they wanted to eat at all.

Let me now speak of the sort of revision of economic regulations that was in vogue before the adoption of the new system.

That revision started with the farmer--the producer of food. Some requisitioning had been done on the farms for strictly military purposes. Horses and meat animals had been taken from the farmer for cash at the minimum prices established by the authorities. Forage and grain for the army had been commandeered in a like manner, and in a few cases wagons, plows, and other implements. Further than that (taking into account the minimum prices, which were in favor of the farmer and intended to stimulate production), the government had not actually interfered with the tiller of the soil. He had gone on as before, so far as a shortage of labor, draft animals, and fertilizers permitted. He had not prospered, of course, but on the whole he was better off than the urbanite and industrial worker, for the reason that he could still consume of his food as much as he liked. The government had, indeed, prescribed what percentage of his produce he was to turn over to the public, but often that interference went no further.

But in the growing and crop season of 1916 the several governments went on a new tack. Trained agriculturists, employees of the Food Commissions and Centrals, looked over the crops and estimated what the yield would be. From the total was then subtracted what the establishment of the farmer would need, and the rest had to be turned over to the Food Centrals at fixed dates.

The farmers did not take kindly to this. But there was no help. Failure to comply with orders meant a heavy fine, and hiding of food brought similar punishment and imprisonment besides.

With this done, the food authorities began to clear up a little more in the channels of distribution. The cereals were checked into the mills more carefully, and the smaller water-mills, which had in the past charged for their labor by retaining the bran and a little flour, were put on a cash basis. For every hundred pounds of grain they had to produce so many pounds of flour, together with by-products when these latter were allowed.

The flour was then shipped to a Food Central, and this would later issue it to the bakers, who had to turn out a fixed number of loaves. To each bakery had been assigned so many consumers, and the baker was now responsible that these got the bread which the law prescribed.

Potatoes and other foods were handled in much the same manner. The farmer had to deliver them to the Food Central in given quantities at fixed dates, and the Central turned them over to the retailers for sale to the public in prescribed allotments. Now and then small quantities of "unrestricted" potatoes would get to the consumer through the municipal markets. But people had to rise at three o'clock in the morning to get them. This meant, of course, that only those willing to lose hours of needed sleep for the sake of a little extra food got any of these potatoes.

The ways of the efficient food-regulator are dark and devious but positive in their aim.

The meat-supply was not further modified. The meatless days and exorbitant prices had made further regulation in that department unnecessary. Milk and fat, however, as well as eggs, were made the subject of further attention by the Food Commissions. All three of them were as essential to the masses as was bread, and for that reason they passed within the domain of the food zone--_Rayon_.

In their case, however, the authorities left the supply uncontrolled. The farmer sold to the Food Central what milk, butter, lard, suet, tallow, vegetable-oil, and eggs he produced, and the Central passed them on to the retailers, who had to distribute them to a given number of consumers. The same was done in the case of sugar.

Such a scheme left many middlemen high and dry. Those who could not be of some service in the new system, or found it not worth while to be connected with it, took to other lines of industry.

The government had left a few such lines open. That, however, was not done in the interest of the middlemen. The better-paid working classes still had pennies that had to be garnered, and these pennies, now that food was surrounded by cast-iron regulations and laws, went into the many other channels of trade.

I made the acquaintance of a man who in the past had bought and sold on commission almost anything under the heading of food. Now it would be a car-load of flour, then several car-loads of potatoes, and when business in these lines was poor he would do a legal or illicit business in butter and eggs. Petroleum was a side line of his, and once he made a contract with the government for remounts. I don't think there was anything the man had not dealt in. But the same can be said of every one of the thousands that used to do business in the quiet corners of the Berlin and Vienna cafés.

I should mention here that the Central European commission-man does not generally hold forth in an office. The café is his place of business--not a bad idea, since those with whom he trades do the same. There are certain cafés in Vienna, Berlin, and Budapest, and the other cities, that exist almost for that purpose. In any three of them one can buy and sell anything from a paper of pins to a stack of hay.

My acquaintance found that the new order of things in the food department left him nothing but the pleasant memory of the "wad" he had made under the old régime. He took to matches.

Matches were uncontrolled and rather scarce. Soon he had a corner in matches. He made contracts with the factories at a price he could not have paid without a large increase in the selling price of the article. But he knew how to bring that condition about.

Before long the price of matches went up. They had been selling at about one-quarter cent American for a box of two hundred. The fancier article sold for a little more.

When the price was one cent a box, my acquaintance began to unload judiciously. Merchants did not want to be without matches again, and bought with a will. The speculator cleared one hundred and twenty thousand crowns on his first release, I was told. His average monthly profit after that was something like forty thousand crowns.

Somehow he managed to escape prosecution under the anti-high-profit decree then in force. No doubt that was due to his connections with the Vienna Bank Food Ring. At any rate, his name appeared as one of the large subscribers to the fifth Austrian war loan, and, needless to say, he paid his share of the war-profit tax.

In this case fractions of pennies were mobilized. I suppose almost anybody who can afford fuel can afford to light a fire with a match that costs the two-hundredth part of a cent. No doubt the government thought so. Why not relieve the population of that little accumulation of economic "fat"?

Another genius of that sort managed to get a corner in candles. How he managed to get his stock has never been clear to me, since the food authorities had long ago put a ban on the manufacture of candles. I understand that some animal fats, suet and tallow, are needed to make the paraffin "stand" up. Those animal fats were needed by the population in the form of food.

But the corner in candles was _un fait accompli_. The man was far-sighted. He held his wares until the government ordered lights out in the houses at eleven o'clock, and these candles were then welcome at any price, especially in such houses where the janitor would at the stroke of the hour throw off the trunk switch in the cellar.

Here was another chance to get pennies from the many who could afford to buy a candle once or twice a week. The government had no reason to interfere. Those pennies, left in the pockets of the populace, would have never formed part of a war loan or war-profit taxes.

Sewing-thread was the subject of another corner. In fact, all the little things people must have passed one by one into the control of some speculator.

Gentle criticism of that method of mulcting the public was made in the press that depended more than ever on advertising. But that fell on deaf ears. And usually a man had not to be a deep thinker to realize that the government must permit that sort of thing in order to find money for the prosecution of the war and the administration of the state. To serious complaint, the government would reply that it had done enough by regulating the food, and that further regulation would break down the economic machine. That was true, of course. To take another step was to fall into the arms of the Social Democrats, and that responsibility nobody expected the government to take.

The attitude of the public toward the governmentally decreed system of social economy is not the least interesting feature of it.