History of Human Society

CHAPTER XXXI

WORLD ECONOMICS AND POLITICS

Commerce and Communication. – The nations of the world have been drawn together in thought and involuntary co-operation by the stimulating power of trade. The exchange of goods always leads to the exchange of ideas. By commerce each nation may profit by the products of all others, and thus all may enjoy the material comforts of the world. At times some countries are deficient in the food-supply, but there has been in recent years a sufficient world supply for all, when properly distributed through commerce. Some countries produce goods that cannot be produced by others, but by exchange all may receive the benefits of everything discovered, produced, or manufactured.

Rapid and complete transportation facilities are necessary to accomplish this. Both trade and transportation are dependent upon rapid communication, hence the telegraph, the cable, and the wireless have become prime necessities. The more voluminous reports of trade relations found in printed documents, papers, and books, though they represent a slower method of communication, are essential to world trade, but the results of trade are found in the unity of thought, the development of a world mind, and growing similarity of customs, habits, usages, and ideals. Slowly there is developing a world attitude toward life.

Exchange of Ideas Modifies Political Organization. – The desire for liberty of action is universal among all people who have been assembled in mass under co-operation. The arbitrary control by the self-constituted authority of kings and governments without the consent of the governed is opposed by all human associations, whether tribal, territorial, or national. Since the world settled down to the idea of monarchy as a necessary form of government, men have been trying to substitute other forms of government. The spread of democratic ideas has been slowly winning the world to new methods of government. The American Revolution was the most epoch-making event of modern times. While the French Revolution was about to burst forth, the example of the American colonies was fuel to the flames.

In turn, after the United States had won their freedom and were well on their way in developing a republican government, the influence of the radical democracy was seen in the laws and constitutions of the states, particularly in the first half of the nineteenth century. The Spanish-American War led to the development of democracy, not only in Cuba and Porto Rico but in the Philippine Islands. But the planting of democracy in the Philippines had a world influence, manifested especially in southeastern Asia, China, Japan, and India.

Spread of Political Ideas. – The socialism of Karl Marx has been one of the most universal and powerful appeals to humanity for industrial freedom. His economic system is characterized by the enormous emphasis placed upon labor as a factor in production. Starting from the hypothesis that all wealth is created by labor, and limiting all labor to the wage-earner, there is no other conclusion, if the premise be admitted, than that the product of industry belongs to labor exclusively. His theories gained more or less credence in Germany and to a less extent in other countries, but they were never fully tested until the Russian revolution in connection with the Great War. After the downfall of Czarism, leaders of the revolution attacked and overthrew capitalism, and instituted the Soviet government. The proletariat came to the top, while the capitalists, nobility, and middle classes went to the bottom. This was brought about by sudden revolution through rapid and wild propaganda.

Strenuous efforts to propagate the Soviet doctrine and the war against capitalism in other countries have taken place, without working a revolution similar to that in Russia. But the International is slowly developing a world idea among laborers, with the ultimate end of destroying the capitalistic system and making it possible for organized wage-earners to rule the world. It is not possible here to discuss the Marxian doctrine of socialism nor to recount what its practical application did to Russia. Suffice it to say that the doctrine has a fatal fallacy in supposing that wage-earners are the only class of laborers necessary to rational economic production.

The World War Breaks Down the Barriers of Thought. – The Great War brought to light many things that had been at least partially hidden to ordinary thinking people. It revealed the national selfishness which was manifested in the struggle for the control of trade, the extension of territory, and the possession of the natural resources of the world. This selfishness was even more clearly revealed when, in the Treaty of Versailles and the formation of the League of Nations, each nation was unwilling to make necessary sacrifice for the purpose of establishing universal peace. They all appeared to feel the need of some international agreement which should be permanent and each favored it, could it first get what it wanted. Such was the power of tradition regarding the sanctity of national life and the sacredness of national territory and, moreover, of national prerogatives!

Nevertheless, the interchange of ideas connecting with the gruelling of war caused change of ideas about government and developed, if not an international mind, new modes of national thinking. The war brought new visions of peace, and developed to a certain extent a recognition of the rights of nations and an interest in one another's welfare. There was an advance in the theory at least of international justice. Also the world was shocked with the terror of war as well as its futility and terrible waste. While national selfishness was not eradicated, it was in a measure subdued, and a feeling of co-operation started which eventually will result in unity of feeling, thought, and action. The war brought into being a sentiment among the national peoples that they will not in the future be forced into war without their consent.

Attempt to Form a League for Permanent Peace. – Led by the United States, a League of Nations was proposed which should settle all disputes arising between nations without going to war. The United States having suggested the plan and having helped to form the League, finally refused to become a party to it, owing in part to the tradition of exclusiveness from European politics – a tradition that has existed since the foundation of the nation. Yet the United States was suggesting a plan that it had long believed in, and a policy which it had exercised for a hundred years with most nations. It took a prominent part in the first peace conference called by the Czar of Russia in 1899. The attempt to establish a permanent International Tribunal ended in forming a permanent Court of Arbitration, which was nothing more than an intelligence office with a body of arbitrators composed of not more than four men from each nation, from whom nations that had chosen to arbitrate a dispute might choose arbitrators. The conference adjourned with the understanding that another would be called within a few years.

The Boxer trouble in China and the war between Japan and Russia delayed the meeting. Through the initiation of Theodore Roosevelt, of the United States, a second Hague Conference met in 1907. Largely through the influence of Elihu Root a permanent court was established, with the exception that a plan for electing delegates could not be agreed upon. It was agreed to hold another conference in 1915 to finish the work. Thus it is seen that the League of Nations advocated by President Wilson was born of ideas already fructifying on American soil. McKinley, Roosevelt, John Hay, Elihu Root, Joseph H. Choate, James Brown Scott, and other statesmen had favored an International Tribunal.

The League of Nations provided in its constitution among other things for a World Court of Nations. In the first draft of the constitution of the League no mention was made of a World Court. But through a cablegram of Elihu Root to Colonel E. M. House, the latter was able to place articles 13 and 14, which provided that the League should take measures for forming a Court of International Justice. Subsequently the court was formed by the League, but national selfishness came to the front and crippled the court. Article 34 originally read: "Between states which are members of the League of Nations, the court shall have jurisdiction, and this without any convention giving it jurisdiction to hear and determine cases of legal nature." It was changed to read; "The jurisdiction of the court comprises all cases which the parties refer to it and all matters specially provided for in treaties and conventions in force."

It is to be observed that in the original statement, either party to a dispute could bring a case into court without the consent of the other, thus making it a real court of justice, and in the modified law both parties must agree to bring the case in court, thus making it a mere tribunal of arbitration. The great powers – England, France, Italy, and Japan – were opposed to the original draft, evidently being unwilling to trust their disputes to a court, while the smaller nations favored the court as provided in the original resolution. However, it was provided that such nations who desired could sign an agreement to submit all cases of dispute to the court with all others who similarly signed. Nearly all of the smaller nations have so signed, and President Harding urged the United States, though not a member of the League, to sign.

The judges of the court, eleven in all, are nominated by the old Arbitration Court of the Hague Tribunal, and elected by the League of Nations, the Council and Assembly voting separately. Only one judge may be chosen from a nation, and of course every nation may not have a judge. In cases where a dispute involves a nation which has no member in the court, an extra judge may be appointed. The first court was chosen from the following nations: Great Britain, France, Italy, United States, Cuba, Switzerland, Netherlands, Denmark, Japan, and Brazil. So the Court of International Justice is functioning in an incomplete way, born of the spirit of America, and the United States, though not a member of the League of Nations, has a member in the court sitting in judgment on the disputes of the nations of the world. So likewise the League of Nations, which the United States would not join, is functioning in an incomplete way.

International Agreement and Progress. – But who shall say that the spirit of international justice has not grown more rapidly than appears from the workings of the machinery that carries it out? Beneath the selfish interests of nations is the international consciousness that some way must be devised and held to for the settlement of disputes without war; that justice between nations may be established similar to that practised within the boundaries of a single nation.

No progress comes out of war itself, though it may force other lines of conduct. Progress comes from other sources than war. Besides, it brings its burdens of crime, cripples, and paupers, and its discontent and distrust. It may hasten production and stimulate invention of destruction, but it is not constructive and always it develops an army of plunderers who prey upon the suffering and toil of others. These home pirates are more destructive of civilization than poison gases or high explosives.

The Mutual Aid of Nations. – In a previous chapter it was shown that mutual aid of individuals was the beginning of society. It now is evident that the mutual aid of nations is their salvation. As the establishment of justice between individuals through their reactions does not destroy their freedom nor their personalities, so the establishment of justice among nations does not destroy their autonomy nor infringe upon their rights. It merely insists that brutal national selfishness shall give way to a friendly co-operation in the interest and welfare of all nations. "A nation, like an individual, will become greater as it cherishes a high ideal and does service and helpful acts to its neighbors, whether great or small, and as it co-operates with them in working toward a common end."54 Truly "righteousness exalteth a nation," and it will become strong and noble as it seeks to develop justice among all nations and to exercise toward them fair dealing and friendly relations that make for peace.

Reorganization of International Law. – The public opinion of the nations of the world is the only durable support of international law. The law represents a body of principles, usages, and rules of action regarding the rights of nations in peace and in war. As a rule nations have a wholesome respect for international law, because they do not wish to incur the unfriendliness and possible hatred of their fellow nations nor the contempt and criticism of the world. This fear of open censure has in a measure led to the baneful secret treaties, such an important factor in European diplomacy, whose results have been suspicion, distrust, and war. Germany is the only modern nation that felt strong enough to defy world opinion, the laws of nations, and to assume an entirely independent attitude. But not for long. This attitude ended in a disastrous war, in which she lost the friendship and respect of the world – lost treasure and trade, lives and property.

It is unfortunate that modern international law is built upon the basis of war rather than upon the basis of peace. In this respect there has not been much advance since the time of Grotius, the father of modern international law. However, there has been a remarkable advance among most nations in settling their difficulties by arbitration. This has been accompanied by a strong desire to avoid war when possible, and a longing for its entire abandonment. Slowly but surely public opinion realizes not only the desire but the necessity of abandoning great armaments and preparation for war.

But the nations cannot go to a peace basis without concerted action. This will be brought about by growth in national righteousness and a modification of crude patriotism and national selfishness. It is now time to codify and revise international law on a peace basis, and new measures adopted in accordance to the progress nations have made in recent years toward permanent peace. Such a move would lead to a better understanding and furnish a ready guide to the Court of International Justice and all other means whereby nations seek to establish justice among themselves.

The Outlook for a World State. – If it be understood that a world state means the abandonment of all national governments and their absorption in a world government, then it may be asserted truly that such is an impossibility within the range of the vision of man. Nor would it be desirable. If by world state is meant a political league which unites all in a co-operative group for fair dealing in regard to trade, commerce, territory, and the command of national resources, and in addition a world court to decide disputes between nations, such a state is possible and desirable.

Great society is a community of groups, each with its own life to live, its own independence to maintain, and its own service to perform. To absorb these groups would be to disorganize society and leave the individual helpless before the mass. For it is only within group activity that the individual can function. So with nations, whose life and organization must be maintained or the individual would be left helpless before the world. But nations need each other and should co-operate for mutual advantage. They are drawn closer each year in finance, in trade and commerce, in principles of government and in life. A serious injury to one is an injury to all. The future progress of the world will not be assured until they cease their squabbles over territory, trade, and the natural resources of the world – not until they abandon corroding selfishness, jealousy, and suspicion, and covenant with each other openly to keep the peace.

To accomplish this, as Mr. Walter Hines Page said: "Was there ever a greater need than there is now for first-class minds unselfishly working on world problems? The ablest ruling minds are engaged on domestic tasks. There is no world-girdling intelligence at work on government. The present order must change. It holds the Old World still. It keeps all parts of the world apart, in spite of the friendly cohesive forces of trade and travel. It keeps back self-government of men." These evils cannot be overcome by law, by formula, by resolution or rule of thumb, but rather by long, patient study, research, and work of many master-minds in co-operative leadership, who will create a sound international public opinion. The international mind needs entire regeneration, not dominance of the powers.

The recent war was but a stupendous breaking with the past. It furnished opportunity for human society to move forward in a new adjustment on a larger and broader plan of life. Whether it will or not depends upon the use made of the opportunity. The smashing process was stupendous, horrible in its moment. Whether society will adapt itself to the new conditions remains to be seen. Peace, a highly desirable objective, is not the only consideration. There are even more important phases of human adjustment.

1. What were the results of the first (1899) and the second (1907) Hague Conference?

2. What is meant by "freedom of the seas"?

3. Should a commission of nations attempt to equalize the ownership and distribution of the natural products and raw materials, such as oil, coal, copper, etc.?

4. How did the World War make opportunity for democracy?

5. Believing that war should be abolished, how may it be done?

6. What are the dangers of extreme radicalism regarding government and social order?

7. The status of the League of Nations and the Court of International Justice.

8. National selfishness and the League of Nations.

9. The consolidation or co-operation of churches in your town.

10. The union of social agencies to improve social welfare.

11. Freedom of the press; freedom of speech.

12. Public opinion.

CHAPTER XXXII

THE TREND OF CIVILIZATION IN THE UNITED STATES

The Economic Outlook. – The natural resources of forest, mines, and agriculture are gradually being depleted. The rapidity of movement in the economic world, the creation of wealth by vast machinery, and the organization of labor and industry are drawing more and more from the wealth stored by nature in her treasure-houses. There is a strong agitation for the conservation of these resources, but little has been accomplished. The great business organizations are exploiting the resources, for the making of the finished products, not with the prime motive of adding to the material comforts and welfare of mankind, but to make colossal fortunes under private control. While the progress of man is marked by mastery of nature, it should also be marked by co-operation with nature on a continued utility basis. Exploitation of natural resources leads to conspicuous waste which may lead to want and future deterioration.

The development of scientific agriculture largely through the influence of the Agricultural Department at Washington and the numerous agricultural colleges and experiment stations has done something to preserve and increase the productivity of the soil. Scientific study and practical experiment have given improved quality of seed, a better grade of stock, and better quality of fruits and vegetables. They have also given improved methods of cultivation and adaptability of crops to the land, and thus have increased the yield per acre. The increased use of selected fertilizers has worked to the same end. The use of a large variety of labor-saving machines has conduced to increase the amount of the product. But all of this improvement is small, considering the amount that needs to be done. The population is increasing rapidly from the native stock and by immigration. There is need for wise conservation in the use of land to prevent economic waste and to provide for future generations. The greedy consumers, with increasing desire for more and better things, urge, indirectly to be sure, for larger production and greater variety of finished products.

The Economics of Labor. – In complex society there are many divisions or groups of laborers – laborers of body and laborers of mind. Every one who is performing a legitimate service, which is sought for and remunerative to the laborer and serviceable to the public, is a laborer. At the base of all industry and social activity are the industrial wage-earners, who by their toil work the mines, the factories, the great steel and iron industries, the railroads, the electric-power plants and other industries. Since the beginning of the industrial revolution in the latter part of the eighteenth century, labor has been working its way out of slavery into freedom.

As a result laborers have better wages, better conditions of life, more of material comforts, and a higher degree of intelligence than ever before. Yet there is much improvement needed. While the hours of labor have been reduced in general to eight per day, the irregularity of employment leads to unrest and frequently to great distress. There is a growing tendency to make laborers partners in the process of production. This does not mean that they shall take over the direction of industry, but co-operate with the managers regarding output, quality of goods, income, and wages, so as to give a solidarity to productive processes and eliminate waste of time, material, and loss by strikes.

The domestic peace in industry is as important as the world peace of nations in the economy of the world's progress. A direct interest of the wage-earner in the management of production and in the general income would have a tendency to equalize incomes and prevent laborers from believing that the product of industry as well as its management should be under their direct control. Public opinion usually favors the laborer and, while it advocates the freedom and dignity of labor, does not favor the right of labor to exploit industry nor concede the right to destroy. But it believes that labor organizations should be put on the same basis as productive corporations, with equal degree of rights, privileges, duties, and responsibilities.

Public and Corporate Industries. – The independent system of organized industry so long dominant in America, known by the socialists as capitalistic production, has become so thoroughly established that there is no great tendency to communistic production and distribution. There is, however, a strong tendency to limit the power of exploitation and to control larger industries in the interest of the public. Especially is this true in regard to what are known as public utilities, such as transportation, lighting, telephone, and telegraph companies, and, in fact, all companies that provide necessaries common to the public, that must be carried on as monopolies. Public opinion demands that such corporations, conducting their operations as special privileges granted by the people, shall be amenable to the public so far as conduct and income are concerned. They must be public service companies and not public exploitation companies.

The great productive industries are supposed to conduct their business on a competitive basis, which will determine price and income. As a matter of fact, this is done only in a general way, and the incomes are frequently out of proportion to the power of the consuming public to purchase. Great industries have the power to determine the income which they think they ought to have, and, not receiving it, may cease to carry on their industry and may invest their capital in non-taxable securities. While under our present system there is no way of preventing this, it would be a great boon to the public, and a new factor in progress, if they were willing to be content with a smaller margin of profit and a slower accumulation of wealth. At least some change must take place or the people of small incomes will be obliged to give up many of the comforts of life of which our boasted civilization is proud, and gradually be reduced to the most sparing economy, if not to poverty. The same principle might be applied to the great institutions of trade.