 Problems in American Democracy, Chapter 1. This is a LibriVox recording, all LibriVox recordings are in the public domain. For more information or to volunteer, please visit LibriVox.org. This reading by Allison Hester of Athens, Georgia. Problems in American Democracy, by Times Ross Williamson. Problems are the growing pains of civilization, offering opportunities for personal achievement. And pointing the way to national progress. Dedication to my mother, whose name appears in no hall of fame, but whose life is an unbroken record of service to her home and to her country. Preface. There is an increasing demand for a textbook which will bring the student into direct contact with the great current issues of American life. And which will afford practical training to those who must soon grapple with the economic, social, and political problems of our own time. It is with the hope of meeting such a demand that this text has been prepared. The plan of the book calls for a word of explanation. It is poor pedagogy to expect the student to attack the defects of American life. And at the same time, to place in his hands a book which deals predominantly with the mechanism of government. As well, send a boy to a hardware store to buy tools before he is told whether he is to make a mousetrap or a boat. Furthermore, to spend much more time on the mechanism of government than on the actual problems of democracy is a mistake in emphasis. Government is a means, not an end. It is a tool by means of which we attack and solve our problems. Therefore, the student of this text begins, not with the mechanism of government, but with the historical background of American democracy, its origin, development, and promise for the future. Following this is a brief survey of the economic life of the nation, because that economic life constitutes the fundamental basis of our problems. Considerable space has been devoted to a problem growing directly out of our economic conditions, i.e. the question of social justice or industrial reform. This is the most pressing question before any modern people, but strangely enough, one which, here to fore, has been neglected by our schools. Because they tend to arise primarily from a bad economic situation, such social problems as industrial relations, health and industry, and immigration are next considered. From social problems, the text passes to the economic and social functions of the government, and then it's to the question of making government effective. The mechanism of government has been placed last, and for the reason already given, i.e. because a knowledge of the framework of government is valuable only after the citizen knows something of the needs which that mechanism must be made to fill. It has not been easy to compress into a single volume the most important of our national problems. Obviously, a rigid selection has been necessary. In this selection, the aim has been to discuss the more important issues of American life, whether economic, social, or purely political. In dealing with these issues, the attempt has been made to keep in mind the student's previous preparation. On the other hand, the civic demands which the future will make upon him have not been ignored. Some of the problems are difficult, but they are also of vital importance. Very shortly, the student will be confronted in his everyday activities with such puzzling matters as socialism, the control of immigration, and taxation reform. If the school does not prepare him to grapple with these questions intelligently, he can only partially fulfill the obligations of citizenship. Throughout the text, the aim has been to go directly to the heart of the problem under consideration. The student is not burdened with a mass of data which would prove confusing, and which would be out of date before he is out of school. Instead, an effort has been made to outline, first, the essential nature of the problem, and second, the fundamental principles which affect its solution. Care has been taken to cultivate the problem attitude, and to encourage the spirit of independent investigation and open-minded judgment on the part of the student. It goes without saying that the success of this book will depend largely upon the use which the teacher makes of it. The text aims to supply the basic facts and the fundamental principles involved in specific problems, but the teacher must interpret many of those facts and principles and ought, in addition, to furnish illustrative material. The book is not intended to be an encyclopedia, but rather a suggestive guide. The text covers the fundamentals of three distinct fields, economics, sociology, and government. Sufficient reference and topic work is offered to enable teachers to expand the text along particular lines. Thus, part two might serve as a nucleus around which to build up a special course in economics, while part three would serve as a basis for a similar course in applied sociology. If, for some reason, it were not feasible to take up other parts of the book. Though the text is the result of the cooperative efforts of a considerable number of specialists, its treatment of the problems of American life is neither dogmatic nor arbitrary. The effort has been to treat all of our problems sanely and hopefully, but at the same time to make it clear that many of these questions are still unsettled, and the best method of disposing of them is yet hotly debated. This fact has strongly influenced the manner in which the problems have been treated. Problems in American democracy. Part one. Foundations in American democracy. Chapter one. The background of American democracy. One. The meaning of national greatness. We apply the term greatness to nations that have made substantial contributions to civilization. By civilization is meant a well-rounded and highly developed culture, or to say the same thing in different words, an advanced state of material and social well-being. Civilization is so vast and so many-sided that it may receive contributions in very diverse forms. The invention of the hieroglyphic system of writing is among the leading achievements of ancient Egypt, but the art and literature of Greece have been no less conspicuous in the onwards sweep of human progress. The promotion of the science of navigation by the Phoenicians and the development of law and architecture by Rome illustrate a few of the forms in which peoples may confer marked benefits upon the world. The advancement of music and painting by Italy, France, and other European nations, and the application and expansion of the idea of parliamentary government by England are further examples of ways in which nations may earn for themselves the title of greatness. Two. The conditions of national greatness. In order that a nation may become great, i.e., make some distinct contribution to civilizations, two conditions must be fulfilled. The first condition of national greatness is that the land under that nation's control must be encouraging to man's honest, helpful efforts. Footnote. As used in this chapter, the term land is held to include not only such natural resources as soil, minerals, forests, and bodies of water, but climate as well. In footnote. The vigorous Scandinavians have made great advances in inhospitable Iceland and Greenland, and the French have reclaimed an important section of Algeria, and the British have worked wonders with some of the barren parts of Australia. Nevertheless, it is with great difficulty that the prosperous communities are developed in lands relatively barren of natural resources or unusually severe in climate. A high and stable civilization has rarely arisen in the tropics, because there the overabundance of nature renders sustained work unnecessary, while the hot, innervating climate tends to destroy initiative and ambition. It is no accident that the greatest nations of modern times are located chiefly within the stimulating temperate zones where nature is richly endowed, but where, too, her treasures are rarely bestowed upon those who do not struggle consistently for them. The second condition of national greatness is an intelligent and industrious population willing to abide by the law and devoted to the building of homes. The combination of an unpromising land and an inferior population effectively prevents the rise of a high civilization. And just as the choices of men can do relatively little in an unfriendly land, so the most promising of countries may be despoiled or temporarily ruined by a slothful or lawless population. From the standpoint of civilization, the best results are obtained when a rural and law abiding people exercise control over a land rich in natural resources and possessed of a stimulating climate. France and Great Britain in Europe and Canada and the United States and North America are examples of great nations which have been built up in such lands and by such peoples. 3. The attractiveness of North America It will be interesting to examine North America in the light of the two conditions of national greatness discussed in the preceding section. We may note, first of all, that by far the greater part of the territory now compromising the United States and Canada is distinctly favorable to settlement. This territory lies almost entirely within the temperate zone. It has unattractive spots, but in general it is neither so barren of resources as to discourage the homemaker, nor so tropical in its abundance as to reward him without his putting forth considerable effort. Particularly within the bounds of the United States is a well balanced national life encouraged by the diversity of soils and the wide variety of climate. Certainly the continent of North America fulfills the first condition of national greatness. 4. The coming of the European The discovery of America in 1492 opened a new era in world history. The nations of Western Europe were disappointed when their earlier explorers found the way to Cathay blocked by a new land mass. But the Spanish discovery of treasure in Mexico and South America soon turned disappointment into keen interest. No magic palaces or spice islands were found, but there were revealed two virgin continents inviting colonial expansion on a scale previously unknown. Of the European powers, which at various times laid claim to parts of the New World, Spain, France, Holland, and England occupy significant positions in the background of American democracy. We may briefly notice the influence of each of these four powers upon America. 5. Spain Though the Spanish were the first in the field, the motives of the colonists limited their ultimate success in the land. The earlier Spaniards were missionaries and treasure seekers rather than home builders and artesians. The early discovery of great quantities of gold and silver had the effect of encouraging the continued search for treasure. In this treasure quest, often fruitless, the Spanish practically confined themselves to Mexico and the region to the south. In these areas, they did valuable work in Christianizing and educating the natives, but little industrial progress was made. Except for the missionary work of the Spanish, their earlier colonization was largely transient and engaged in for the purpose of exploitation. 6. France France disputed the claim of Spain to North America soon after the opening of the 16th century. The French attempted to settle in Florida and in South Carolina, but the opposition of the nearby Spanish forced the newcomers to leave. In 1524, Verrazano explored the North Atlantic coast for the French. And 10 years later, Cartier sailed up the St. Lawrence and founded the claim of France to that section of the New World. Following the example of Spain, France dispatched missionaries to the New World to convert the Indians. Soldiers and trappers were sent out to develop the valuable fur trade by the establishment of widely separated forts and trading posts. But the French settlers had no popular lawmaking bodies being completely under the power of the king. Only along the St. Lawrence, where agricultural colonies were planted, did the French really attach themselves to the soil. Elsewhere, there were few French women and therefore few normal French homes. And, when in 1763 all of the French possessions east of the Mississippi were ceded to England, it was largely true that the French colonies had not yet taken root in the country. Infinite courage, devotion, and self-sacrifice were ultimately wasted largely because of the lack of homes, in the absence of self-government, and the failure to develop an industrial basis of colonization. 7. Holland The Dutch became aware of the commercial possibilities of the New World in 1609 when Henry Hudson discovered the river which bears his name. Trading posts were soon established in the neighborhood and, in 1621, the West India Company was given full authority to plant colonies in New Netherland. A brisk trade in furs developed, but, though the company grew rich, the colonists were not satisfied. The agricultureists, along the Hudson, had the benefit of a fertile soil in a genial climate, but they operated their farms under a feudal land system which allowed an overlord to take most of their surplus produce. Moreover, the Dutch governors were autocratic and the settlers had little voice in the government of the colony. Loyalty to Holland waned as the Dutch saw their English neighbors thriving under less restrictive laws and a more generous land system, so that when, in 1664, the colony passed into the possession of the English, the majority of the settlers welcomed the change. 8. England The Spanish had been in the New World a century before the English made any appreciable impression upon the continent of North America. In 1583, Sir Humphrey Gilbert had made an unsuccessful attempt to found a colony on the coast of Newfoundland, and a few years later, Sir Walter Rowley's venture at Roanoke Island proved equally disastrous. Colonization was retarded until 1588, in which year England's defeat of the Spanish Armada destroyed the sea power of her most formidable rival. The English may be said to have made serious and consistent attempts at colonization only after this event. Like France, England desired to set herself up as a successful colonizing rival of Spain. Impaled by this motive, the earlier English adventurers sought treasure rather than homes, but the high hopes of the early English joint stock companies were not justified. Those who had looked to America for treasure were disappointed. No gold was forthcoming, and such groups as the Jamestown Suddlers of 1607 very nearly perished before they learned that America's treasure house could be unlocked only by hard work. In spite of heavy investments and repeated attempts at colonization, these first ventures were largely failures. 9. The Coming of the Homemaker It may truly be said that the seeds of national greatness were not planted in America until homemaking succeeded exploitation by governments and joint stock companies. Homemaking received little or no encouragement in the early Spanish, French and Dutch colonies. Almost from the first, England allowed her colonies a large measure of self-government, but it is significant that these colonies made little progress so long as they were dominated by joint stock companies intent upon exploitation. It was only when individuals and groups of individuals settled independently of the companies that the colonies began to thrive. The first really tenacious settlers on the Atlantic Seabird were groups of families who were willing to brave the dangers of an unknown land for the sake of religious freedom, economic independence, and a large share of self-government. It was with the coming of these people that our second condition of national greatness was fulfilled. 10. Growth of the English Colonies The English annexation of New Netherland in 1664 and the concessions of the French in 1763 left the English in undisputed possession of the greater part of the Atlantic Seabird. The English colonies in this area grew with astonishing rapidity. Cheap land, religious freedom, and the privilege of self-government attracted settlers from all parts of northern Europe. At the close of the 17th century there were 260,000 English subjects in North America. In 1750 there were approximately one million, and in 1775 there were probably three million. Although in most sections the dominant element was of English extraction, other nationalities contributed to the population. Along the Delaware, Swedes were interspersed with the English, while in Pennsylvania there were large groups of Germans. Numerous Dutch settlers had continued to live along the Hudson after New Netherland had passed into English hands. Some of the most frugal and industrious of the settlers of Georgia and South Carolina were French Huguenots, while along the Seabird and inland the Scotch-Irish were found scatteringly in agriculture and trade. Such was the composition of the people who were destined to begin an unexampled experiment in democracy, an experiment upon the successful termination of which rests our chief claim to national greatness. End of Chapter 1, Chapter 2 of Problems in American Democracy. This is a LibriVox recording. All LibriVox recordings are in the public domain. For more information or to volunteer, please visit LibriVox.org. This reading by Allison Hester of Athens, Georgia. Problems in American Democracy by Times-Williamson. Chapter 2, The Origin of American Democracy. 11. The Nature of Government. A government may be defined as an agency through which the purposes of a state or nation are formulated and carried out. This agency develops where men live in groups. One of the chief objects of government is to adjust individual interests, or to say the same thing in slightly different words, to control members of the group in their social relations. Where groups are small and culture is at a low level, government may consist in little more than the arbitrary rules of a self-appointed chieftain. From this stage, there are numerous gradations up to the great complex governments of the leading nations of today. With the origin and general development of government, we are not here concerned, and we may accordingly confine our attention to those types of modern government which throw light upon the development of American democracy. 12. The Absolute Monarchy. An absolute monarchy may be defined as a government in which supreme power or sovereignty is lodged in one individual. This monarch holds his position for life, generally with hereditary succession. Often, the absolute monarchy arose out of the ancient chieftainship, when, as the result of territorial expansion and cultural development, the chief of a group of tribes became the king of a settled and civilized people. The absolute monarchy existed in most of the countries of Europe previous to the end of the 18th century. In its most extreme form, the absolute monarchy rested upon the claim of the monarch that he ruled by divine right, i.e., that God had authorized him to rule. France, in the era of Louis XIV, is one of the best known examples of a modern nation ruled by a divine right monarch. 13. The Limited Monarchy. When a monarch has been restricted in his powers, a limited or constitutional monarchy is said to exist. Almost always, the establishment of a limited monarchy has been preceded by a series of struggles between king and people. In many cases, these struggles have been precipitated or intensified by the monarch's abuse of power. A striking example is offered by English history. As the result of his arbitrary rule, King John was, in 1215, obliged to sign the Magna Carta, by which act he gave up many important powers. The limits thus set upon the kingly power were affirmed and extended by the Petition of Right in 1628, and by the Bill of Rights in 1689. A similar limiting process has gone on in other countries, either by the framing of the constitutions or by the enlargement of the powers of the legislatures, or by both methods. Today, the absolute monarchy is practically unknown among civilized nations. 14. The Republic. The Republic is a form of government in which the ultimate power, or sovereignty, resides with the people as a whole, rather than with a single individual. Instead of a monarch, there is generally an elective president with varying powers. The Republic is a very old form of government, but in the Republics of Greece, Rome, and Venice, the powers of government were exercised by a class composed of a small minority of the people. In modern Republics, a larger proportion of the adult population participates in government. A Republic may arise in any one of several ways, but most of the Republics of modern times have grown out of monarchial conditions, either directly or indirectly. Our Republic arose as a reaction against English monarchy, while the French Republic came into being as the result of the destruction of a monarchial government. Most of the Republics of Latin America date from the throwing off of the Spanish yoke in the first half of the 19th century. More recently, the World War has given rise to a number of European Republics, composed of peoples formerly under the control of monarchial governments. 15. Democracy as a political idea. The term democracy is derived from two Greek words, which, taken together, mean, control by the people. Strictly speaking, democracy is a form of government only where a small group governs itself directly, i.e. without making use of the representative device. This pure democracy, such as existed in the early New England town, becomes a representative democracy, or a Republic, when a greater population and an increasing political complexity require the people to act through their representatives rather than as a body. In the sense that democracy is popular control, the term democracy may conceivably be applied to any form of government. The present government of Great Britain, for example, is technically a limited monarchy, yet the gradual extension of popular control has made it one of the most democratic governments in the world. Nevertheless, the modern Republic is so generally associated with the democratic movement that many authorities speak of a democracy as identical with a Republic, for a time being we may use the term democracy to describe a form of government in which considerable control is exercised by the people. More briefly, democracy may be thought of as self-government. 16. Why democracy developed in America. There are four reasons why democracy developed early in America. The first is to be found in the conditions of pioneer life in the colonies, the wilderness forced self-government upon the settlers, clearing the forests, subduing the Indians, and conquering animal foes with stern work, which weeded out the indolent and inefficient, and rewarded the capable and self-reliant. Pioneer conditions did not encourage a cringing or submissive spirit, but fostered independence and individualism. The spirit of equality tended to become a dominant feature of American life, for despite the existence of social classes, the great majority of the population had to rely for their living upon their own efforts. Under such conditions, self-reliance and self-government were natural developments. The selected character of the colonists is a second reason for the rise of democracy in America. Restless spirits who had chafed under the restraints of monarchy in Europe thronged to the new land. Once here, they often found the older American communities intolerant, and so struck out into the wilderness to found new, and to them, more democratic colonies. The founding of Rhode Island by Roger Williams and the settlement of the Connecticut Valley by Thomas Hooker illustrate this tendency. It should be remembered, thirdly, that the English colonists brought with them very definite ideas as to the rights of man. The concessions granted by the Magna Charta were made an essential part of their political philosophy. The belief that all men were born free and equal, and that government derives its powers from the consent of the governed, became prominent in early American politics, where the democratic tendencies of the settlers were reinforced by such traditions, and oppressive government could not last. In Carolina, in 1670, for example, an attempt to set up an undemocratic government failed, and when half a century later a similar attempt was made in Georgia, the settlers objected so ardently that the founders of the colony were obliged to grant the privilege of self-government. A fourth explanation of the rise of democracy in America is that, left to themselves, the settlers came to feel that self-government was morally right. Largely removed from the traditions of monarchy, they soon realized the elemental significance of government. Seeing government as a device to help people get along together, they concluded that the government is best, which most helps the masses of the people. The existence of a British monarch was a small factor in the everyday life of the early settlers, and from this it was a short step to asserting that his control over them was unjust. Living under primitive economic conditions, the minds of the people turned naturally to freely formed agreements as a basis of group action. Under such conditions, democracy appeared to the colonists as moral, just, and natural. 17. Applying the Democratic Idea Partly because of the isolation of early American life, and partly because England was busy with European politics, the settlers were left relatively free to work out their ideas of democracy. The pilgrims had not yet set foot upon the new land when they drew up the Mayflower Compact, by the terms of which they agreed to establish a pure democracy in their new home. In 1639, the inhabitants of three Connecticut towns came together in a mass meeting and drew up the Connecticut Fundamental Orders, which many authorities regard as the first written constitution in this country. Aside from the fact that the orders created a small republic in the heart of the wilderness, they are of importance because they issued directly from the people, without suggestion from, or direction by, any outside agency. Elsewhere in New England, too, local self-government was a spontaneous growth. Usually, the settlers grouped themselves in small compact communities known as towns, the freemen coming together in the town meeting for the purpose of passing laws and electing officials. The town meeting constituted a pure democracy in which the freemen governed themselves consciously and directly. 18. Spread of the Representative Idea The principle of representative government appeared very early in English history, expressing itself most clearly in the Houses of Parliament. The principle was early transplanted to America. For, in 1619, we find the London Company establishing in Virginia a House of Burgesses, the first representative assembly in the New World. The representative democracy spread rapidly through the colonies, in many cases replacing the pure democracy as a form of local government. In Massachusetts Bay, for example, the population of the colony became so dispersed and the complexity of its government so great that it was necessary for most freemen to remain at home and to content themselves with choosing a small number of individuals to represent their interests. These representatives gathered in the general court and transacted the business of the colony. 19. The Separation of Powers As government develops in scope and complexity, there is a tendency for the agents of government to specialize in various types of work. A more or less recognizable separation of the government machinery into legislative, executive, and judicial branches had long been a feature of English government. Early in the 17th century, this principle was transferred to the government of the English colonies in America. There was established in each colony a legislative branch for the enactment of laws, an executive branch to see that the laws were enforced, and a judicial branch for the interpretation of the laws. This separation of functions was more definite in America than in England because the jealousy existing between the colonial legislature and colonial executive tended sharply to separate their powers. In America too, the judiciary was more clearly an independent branch of government than in England. 20. The Colonies as Self-Governing States It has often been said that for a considerable period prior to the American Revolution, the 13 colonies were in reality self-governing states. For most practical purposes, they were independent. Indeed, some American patriots insisted that they were only nominally subject to England. In each colony, there was an assembly chosen by a restricted number of voters. This popular assembly championed the cause of the colonists against the governor, who, in most of the colonies, was primarily an agent of the crown. After the middle of the 18th century, the struggles between assembly and governor increased in number and in intensity, and victory rested more and more often with the assembly. 21. Effect of the Revolution Upon American Governments The revolution did not greatly affect the character of American governments. Democracy, at first, was weak and ill-diffused, had been spreading steadily during the preceding century, and, when at last the break with England came, found the states trained in self-government and able to conduct their own affairs. In many cases, the revolution simply erased the name of the king from documents and institutions already American in spirit and character. The states either retained their old charters as constitutions, as in the case of Connecticut and Rhode Island, or framed new constitutions based upon the experience of colonial government. The popular legislative assembly was everywhere retained. The common law of England continued in force, and the system of courts was retained in practically its pre-revolution form. The basis of state government had been laid long before the revolution. The new states simply accepting the basic political principles with which they, as colonies, had long been familiar. The defeat of English claims was only an incident in the irresistible progress of American democracy. End of Chapter 2. Chapter 3 of Problems in American Democracy. This is a LibriVox recording. All LibriVox recordings are in the public domain. For more information or to volunteer, please visit LibriVox.org. This reading by Allison Hester of Athens, Georgia. Problems in American Democracy by Times-Williamson. Chapter 3. The Development of American Democracy. 22. Local versus National Spirit. The outbreak of the American Revolution proved that the colonies were so deeply attached to democracy that they were willing to fight for it. But the spirit which animated the revolution was local, rather than national. The colonial protests, which in 1776 reached their climax and the Declaration of Independence had to do almost entirely with the rights of the colonies as individual states and with the determination of those states to defend the principle of self-government. The war created 13 practically independent states among which the spirit of state sovereignty was much stronger than was the inclination to form an indissoluble union. The revolution emphasized local and state interests rather than intercolonial cooperation and however much the colonists appreciated local democracy in 1776 they had yet to learn to think in terms of a national patriotism. A brief review of the attempts at union before 1787 will serve to illustrate this important point. 23. Early Attempts at Union. The first notable attempt at union was made in 1643 when Massachusetts Bay, Plymouth, Connecticut and New Haven formed a league chiefly for the purpose of mutual defense. This league was enforced for 40 years and rendered effective service in the Indian wars. In 1754 delegates from seven of the colonies met at Albany and adopted a plan of union proposed by Benjamin Franklin. The plan provided for a colonial army, the control of public lands, legislation affecting the general welfare and the levying of taxes for intercolonial projects. In America, Franklin's plan was regarded with considerable favor but it was never given serious consideration by the British Parliament. The project fell through. Still later, 1765, delegates from nine of the colonies met in the Stamp Act Congress for the purpose of drawing up a protest against the taxation policy of the mother country. The two Continental Congresses may also be regarded as steps toward union. The first of these met in 1774 and concerned itself cheaply with the declaration of rights and grievances. The second, 1775 to 1781, assumed revolutionary powers and, with the consent of the people, exercised those powers during the greater part of the war period. 24. The Articles of Confederation Nothing so clearly illustrates the sectional feeling of that era as the history of the Articles of Confederation. The Articles were adopted by the Second Continental Congress in 1777 but on account of the tardiness with which some of the states ratified them, they were not put into actual operation until March 1, 1781. By the terms of the Articles, the states yielded some of their powers. The central government, being given the right to declare war, borrow and coin money, establish post offices, and otherwise act for the general good. On the other hand, the Articles declared that each state retains its sovereignty, freedom, and independence. In every power, jurisdiction, and right, which is not by this federation delegated to the United States. Thus, the new government was a confederation or League of States rather than a federal government such as we have today. There was no national executive, no judiciary. All authority was concentrated in a one chambered congress in which each state was represented by not fewer than two and not more than seven members. The delegates were subject to recall by the legislatures of their respective states. Each state had one vote which was determined by a majority of the state's delegates who were present when the vote was taken. 25. Defects of the Confederation Government The government established by the Articles of Confederation had a number of grave defects. The fundamental difficulty was that the central government had no real authority or power. The Congress of the Confederation could reach individuals only through the action of the state governments and these it could not coerce. Thus, the Congress could declare war and make requisitions upon the states for troops but it could not enlist a single soldier. It could make laws but had no power to enforce them. It could make treaties with foreign governments but could not oblige the states to respect those agreements. The central government could not levy taxes but was obliged to accept whatever sums the state chose to contribute. The Confederation government could not even protect itself or the states against violence. It lacked force and without the ability to exert force a government is a government in name only. Not only did the central government fail to enlist the respect and support of the states but it could not induce the states to respect or support each other. Congress had no power to regulate either foreign or domestic commerce each state being free to control the commercial activities of its citizens as it's all fit. In many cases the states engaged in trade wars that is they levied heavy duties upon the commerce of one another or even refused to allow their citizens to buy goods from or sell goods to persons in neighboring states. Matters calling for unity of action and friendly cooperation such as roads and canals were ignored or neglected because of interstate jealousy. Whereas they should have united against the great dangers of the period immediately following the war the states often wasted time and energy and controversy and strife. 26. Failure of the Confederation government The Confederation government established in 1781 functioned weekly during the remaining two years of the war and then declined rapidly in power and influence. The defects of the articles could not be remedied for amendment was by unanimous consent only and on every occasion that an amendment was proposed one or more states refused their assent. According to John Feisk the five years following the peace of 1783 constituted the most critical period in the history of the American people. Business was demoralized. Most of the states were issuing worthless paper money and several of them passed laws impairing the obligation of contracts. In a movement known as Shay's Rebellion 1786 to 1787 a portion of the debtor class of Massachusetts attempted to prevent the collection of debts. Paper money depreciated so greatly that in many places it ceased to pass as currency. The central government could not raise money to meet its ordinary expenses and in 1783 Congress was forced to flee Philadelphia to escape the wrath of some 80 Pennsylvania soldiers whom it could not pay. Demoralization and civil strife at home were matched by ridicule and suspicion abroad. Congress could not pay the interest on the national debt. As early as 1783 our foreign credit was gone. Many European statesmen scoffed at the American government. France denied the existence of a general government in America. In England our diplomatic representatives suffered numerous humiliations. They were told for example that the British would not relinquish the western forts promised us by the Treaty of Paris until our national government was able to force several American states to observe the treaty. 27. Obstacles to Union There are three important reasons why the states failed to draw together into a firm union before 1787 in the first place. Each state considered itself a sovereign body and of governments above and beyond itself it was naturally suspicious. Many of the Americans had regarded the British government as a super government imposed against the will of the American people and maintained in spite of their protests. The Dominion of New England which prior to the adoption of the Articles of Confederation had been the nearest approach to Union was recalled with anger and in fear. This plan forced upon the Americans in 1686 by the King united eight of the colonies under the rule of Governor Andros. The union was dissolved by the bloodless Revolution of 1688 but the arbitrary rule of Andros was long sided by the Americans as proof of the despotic character of any government beyond that of the individual states. A second explanation of the failure of the states to unite before 1787 is to be found in the social and economic differences existing among the states. Most of the inhabitants of New England were grouped in small compact communities and were engaged in shipbuilding and commerce rather than in agriculture. There was an aristocratic group but most of the people belonged to the middle class and were simple and even severe in their tastes. In the middle colonies on the other hand most of the people were small farmers of mixed religions and racial character. Social classes existed to a considerable extent. The South was devoted to large plantations cultivated by black slaves. Social lines were sharply drawn and a genuine aristocratic class was already well formed. A third reason for the weakness of the cooperative spirit among the states is to be found in the lack of means of transportation and communication. Travel was mostly confined to natural waterways or to rude paths over which horses proceeded with great difficulty. As late as 1800 it often took horsemen longer to go from Boston to New York than it now takes to go by rail from New York to San Francisco and back again. There were no railroads in those days. No telephones, no telegraph and practically no postal service. Life was primarily rural even on the seacoast. Most interests centered about the local community or at farthest about the colony or state. In many sections there was little exchange of products or of ideas. From the resulting isolation there developed a strong feeling of localism or provincialism. Ignorance and suspicion of intercolonial affairs gave rise to misunderstandings and emphasized differences and disputes which in themselves were unimportant. Thus jealousy and hostility often sprang up where mutual confidence and cooperation were sorely needed. 28. Negative Forces Favoring Union The failure of the Articles of Confederation is one of the most discouraging chapters in the development of American democracy. And yet it is an indispensable chapter for it demonstrated far more convincingly than could any theoretical argument that there must be one great American nation rather than 13 or more unrelated republics. Six years of practical experience with the Articles of Confederation taught the absolute necessity of a strong central government. The weaknesses of the Confederation government constituted the most spectacular of the forces favoring union in 1787. And yet these forces were negative in character. The states accepted the Constitution of 1787 not so much because they were attracted by it as because they saw little chance of getting along without it. 29. Positive Forces Favoring Union It should be noted on the other hand that for a long period previous to the adoption of the Constitution in 1787 certain positive forces were impelling the states toward union. In their old world homes most of the settlers had occupied somewhat the same social position and had been used to somewhat the same economic conditions. This common background constituted in their new world homes a unifying force of great importance. Long before 1787 too the great majority of the settlers were of English descent speaking the English language and except for the Roman Catholics of Maryland professing some form of protestantism. In spite of the numerous jealousies and rivalries among the various sections of the country there were at work forces which tended to break down the spirit of localism or provincialism. Though the revolution established 13 separate states the war had encouraged the Americans to feel that they were a single people with a common destiny. The soldiers of various sections had rubbed elbows with one another during the French and Indian wars and during the revolution. This had served to encourage a feeling of comradeship between the inhabitants of different communities. The population of the country was doubling every 20 years and groups previously isolated were coming into contact with one another. Interstate cooperation was not only more necessary than ever before but it was less difficult to bring about. Highways were being improved and the postal service gradually extended with the result that a more wholesome social life was possible. In an economic sense the American people were increasingly interdependent. Especially on the frontier many communities were still economically self-sufficing but to an increasing extent the development of commerce and manufacturing was everywhere calling for a closer cooperation between various sections of the country. The Annapolis Convention of 1786 indeed was called for the purpose of promoting commercial cooperation among the states. According to Professor Beard the formation of the federal constitution itself may in large measure be traced to the desire throughout the country for interstate cooperation in industry and commerce. 30. American Democracy in 1787 The Constitutional Convention of 1787 expanded American democracy to a political concept of national proportions but though this was an important step forward American democracy had not yet been fully developed. Religious freedom indeed had been guaranteed by the Constitution but the suffrage was still narrowly restricted. The adoption of the Constitution was due primarily to negative forces. The full development of the positive forces upon which the ultimate integrity and rests was to be delayed for almost a century. The states technically abandoned state sovereignty when they accepted the Constitution of 1787 but not until the Civil War had been won was permanent union assured. Most important of all American democracy was in 1787 only a political concept. There was at that time no suspicion that democracy was later to be expanded into a philosophy of life applicable not only to purely governmental affairs but to the individual in his economic and social relations as well. End of Chapter 3 Chapter 4 of Problems in American Democracy This is a LibriVox recording all LibriVox recordings are in the public domain. For more information or to volunteer please visit LibriVox.org This reading by Allison Hester of Athens, Georgia Problems in American Democracy by Times-Williamson Chapter 4 Essentials of American Constitutional Government 31. The aim of this chapter The form of government established in this country by the Constitution of 1787 is known as a Republic. A Republic may be defined as a representative democracy or in the popular sense of the term simply as a democracy. Now to point out that a government is democratic does not necessarily mean that it is a sound government granting that self-government is morally right the fate of a democracy will depend partly upon the character of the people and partly upon the nature of the governmental machinery through which that people expresses its will. The proof of democracy is in its workings. The aim of this chapter is not to pass judgment upon democracy but rather to outline the essential characteristics of American Constitutional Government. When this background has been secured we shall be in a position to begin a detailed study of applied democracy to point out its merits to call attention to its defects and to consider how and to what extent it may be improved. 32. Strength American Constitutional Government American Constitutional Government is a strong government. The weaknesses of the articles of Confederation were avoided in framing the Constitution of 1787 whereas the Confederation Government was really headless. The Constitution of 1787 provided for a strong executive. The Confederation Congress could not levy taxes but the Congress of the United States has adequate powers in this regard. There can be no recurrence of one chief financial troubles of the revolutionary period. For at the present time the several states may neither coin money nor emit bills of credit. The federal government has exclusive control of foreign affairs so that no state may individually enter into any agreement with a foreign power. The federal Constitution is the supreme law of the land and no state action may contradict it. Unity has given us strength and great crisis such as the Civil War and the World War have ended by increasing that strength. 33. The Check and Balance System A striking characteristic feature of the American Constitutional Government is the Check and Balance System. By this system we mean all those constitutional provisions which divide and subdivide governmental power among various sets of public agents. This division of powers is three fold. First, there is a division of power between the federal government and the governments of several states. The states are obliged to act and concert on most questions involving the nation as a whole but the federal Constitution safeguards the rights of the states by reserving to them all powers not specifically delegated to the federal government. Second, in both federal and state governments power is still further distributed among the executive, legislative and judicial branches in such a way that each branch constitutes a check upon the other two. Third, in both federal and state governments there is a division of power within each of the three branches of government. Thus both the president of the United States and the governors of the various states are at least partially controlled by subordinate executive officials while in the legislative branch of both federal and state governments the upper and lower houses constitute a check upon one another. In the case of both federal and state judicial systems there is a division of jurisdiction. Thirty-four, the check and balance system secure stability. American government is not only strong it is stable. This stability is due chiefly to the admirable way in which different governmental agents are balanced against one another. The check and balance system renders us safe from the danger of anarchy for though ultimate control is vested in the people sufficient powers are entrusted to the governmental mechanism to protect it against popular passion. The system likewise protects us against despotism so long as the constitution endures neither the federal government nor the governments of the states may destroy each other. The undue concentration of political power is likewise rendered difficult by the division of power between the legislative, executive and judicial branches of both federal and state governments. The significance of a properly applied check and balance system appears clearly when we compare our government with that of various other republics and many of the ancient republics for example the powers of government were so unequally and so indefinitely divided that republican government degenerated either to despotism or to anarchy. Within the last century many Latin American republics have modeled their governments after hours and yet some of these republics are constantly threatened by either revolution or despotism. The explanation of this according to Elihu Root is that these republics have adapted the check and balance system so carelessly that they find it difficult if not impossible to maintain a really stable government. 35. The Rights of the Individual We have not purchased strength and stability at the expense of personal freedom for both federal and state constitutions specifically safeguard the rights of the individual. The fundamental guarantees set forth in the magna the petition of right and the bill of rights were cherished by the American colonists and in 1791 they formed the basis of the first ten amendments to the federal constitution. Provisions similarly designed to safeguard individual rights are found in the constitution of every state in the union. But note for an enumeration of these rights see the first ten amendments to the federal constitution. Appendix consult also the bill of rights in the constitution of your state and a footnote. From the beginning of our national history a fundamental principle of American government has been to allow the individual as much freedom of thought and action as is compatible with the general welfare. 36. Control by the people under American constitutional government sovereignty resides with the people as a whole though the people act through their chosen representatives. There is no power in American government beyond that created or permitted by the people themselves. The suffrage so narrowly restricted in the 18th century has since widened to include the great majority of adults both male and female. Elections are frequent so that ill chosen officials may not long abuse their position. The initiative, the referendum and the recall are methods of popular control which in many sections are spreading. Constitutional amendment in the United States is not easy. On the other hand if any considerable percentage of the voters events a sustained desire for change an amendment is the normal result. Footnote. In part four of the text we shall consider the dangers of an overextension of popular control. Here it is only necessary to point out that American government is essentially government by the people. 37. Efficiency. The division of functions between the federal and state governments on the one hand and between state and local governments on the other provides a solid foundation for the economical administration of our government. The federal government attends to most matters which are of national importance and which cannot properly be looked after by the states individually. For example, foreign relations, the postal service and the coinage of money are federal functions. The separation of federal and state functions is not always clear but such matters as contracts, property rights, crime and education are probably best administered by the state. There is similarly no sharp dividing line between the functions of state and local governments. But at present it appears that the local authorities are the most efficient administrators of roads and bridges, water and paving the elementary schools in similar concerns. The essential economy of this threefold division of functions is that each of the three sets of officials tends to concern itself with those matters with which it is best acquainted and which are most continuously administered by it. 38 Unity The earlier European critics of our government declared that the division of powers between federal and state governments would encourage civil strife. It is true that this division of powers has resulted in a decentralized rather than in a centralized form of government. It is equally true that the quarrel over states' rights is the fundamental cause of the Civil War, but that the war settled the question of states' rights once and for all. And there has never again been any serious question as to the proper status of states in union. American democracy has been found compatible with unity. Nor has the decentralized character of American government kept us from presenting a united front in foreign wars. The concentration of war powers in the hands of President Lincoln during the Civil War was matched by the temporary dictatorship wielded by President Wilson during the World War. In both cases, the national executive became, for the period of the emergency, as powerful and as efficient as the executive of a highly centralized monarchy. This ability to exhibit unity of control in singleness of purpose and wartime enables us to claim for our form of government one of the most important assets of the centralized monarchy. 39. The Spirit of Progress Certainly one test of good government is the extent to which it renders the masses of the people happy and prosperous. American government has not yet exhausted the possibilities of helpfulness, but one of the chief aims of our political system is to encourage the individual in every pursuit which is equal and honorable. Lord Bryce has called America the land of hope because in spite of the defects of American government, a feeling of buoyancy and optimism is characteristic of our political institutions. America might also be called the land of sane endeavor for we lend force and justification to our optimism by consistently working for the attainment of our ideals to improve every condition of American life and yet to work in harmony with the principles of constitutional government, that is our ideal. Progress must come through authorized channels for, as Abraham Lincoln has said, quote, a majority held in restraint by constitutional checks and limitations and always changing with the deliberate changes of popular opinion and sentiment is the only true sovereign of a free people and whoever rejects it does of necessity, fly to anarchy or despotism. End of chapter 4 Chapter 5 of Problems in American Democracy This is a LibriVox recording All LibriVox recordings are in the public domain For more information or to volunteer, please visit LibriVox.org This reading by Allison Hester of Athens, Georgia Problems in Democracy Chapter 5 The Problems of American Democracy 40 No government is perfect All government is a compromise in that it is adopted or created for the purpose of harmonizing the interests of the individual with the interests of the group The types of government are numerous varying with the character of the group and with the particular conditions under which it exists but we know of no government which is perfect all have shortcomings some very serious, others less so There is nothing to be gained therefore by debating whether or not the American government is imperfect A much more profitable question is this What are the faults of American democracy and how may they be eliminated or minimized? The objective work which the American citizen is called upon to do is to grasp the character of the problems confronting his country and then to attempt their solution 41 The Widening Circle of Problems The last two centuries have constituted an age of rapid change and development in all of the major phases of civilization There have been rapid shifts in population particularly in the younger countries of the world Important discoveries have greatly increased our knowledge of natural science Epic making inventions have revolutionized manufacturing commerce and transportation In every civilized land there have been readjustments of political beliefs as well as important changes in intellectual, religious and social standards Such an age is peculiarly an age of problems a period of change and stress a time of readjustment or adaptation to changed conditions of growth and of development We in America are confronted by an ever widening circle of problems and is chiefly for two reasons In the first place we have felt the impact of those forces which for the last two centuries have been creating problems the world over In the second place the whole period of our national development has fallen within this age of change and readjustment This means that we have had to grapple with the problems common to all modern countries during a period in which the origin and development of American democracy have been creating purely domestic problems These facts at least partially explain the growing importance of the problems of American democracy during the past century 42 Effect of an enlarged social conscience Many of the issues of contemporary American life have come into prominence because we have enlarged the concept of democracy within the last century The term democracy has come to imply not merely a form of government but actually a philosophy of life stressing justice and happiness for the individual whether in his political, social or economic capacity The more humanitarian our view the more situations calling for remedy fall within it Child labor to give a single example was not generally considered an evil a century ago but today an enlarged social conscience condemns it 43 Necessity of avoiding paternalism The solution of many national problems implies an extension of government control Now it is not generally appreciated that while an enlarged social conscience has increased the number of our problems the individualistic strain in the American nature resists that paternalism which at present appears necessary to an effective treatment of certain problems We are behind Germany and legislation designed to prevent industrial accidents lessen the evils of unemployment and otherwise protect the worker against the risks of industry But Germany has built up this system of social insurance by restricting personal liberty and by greatly extending the power of government over the individual The great task confronting our government is to do as much for the individual as any paternalistic government without endangering his rights by an undue extension of governmental control 44 The complexity of our problems The mistake is sometimes made of thinking that national issues can be nicely defined and separated from one another The human mind has its limitations and we are prone to emphasize the outline and content of particular problems in order to perceive their essential character the more clearly But though this is permissible for purposes of study we must bear in mind that the questions which we are to discuss are connected with one another in a most baffling way To understand the administration of charity, for example we ought to know this social, economic and political background of the community under observation The thorough study of this background would lead us to crime, education and other problems which in turn have their connections with issues still further removed from the immediate problem of charity The thorough understanding of a specific question thus implies consideration of many interrelated questions Likewise, the solution of a particular question affects and is affected by the whole mass of related phenomena 45 Importance of the economic background It would be unwise, perhaps to claim that any definite group of problems is of greater importance than any other group But at least we may say that some problems are primary in origin while others appear to be secondary, i.e. derived from those called primary In the chapters which follow the attempt has been made to arrange the groups of problems with some regard to their primary or secondary origin Probably, the most fundamental problems which face us today are those of economic organization Properly to understand these problems the student must first grasp the essential facts of American industry We shall begin our study of the problems of American democracy therefore with a survey of the economic life of the nation Only after we have mastered the principles upon which American industry is based shall we be in a position to solve the problems which arise directly from the nature of our economic organization 46. Industrial Reform Our industrial life is so clearly based upon certain fundamental institutions such as private property, free contract and free competition that an industrial system is said to exist Certain great evils notably poverty have accompanied the development of this system We shall discuss a number of programs designed to eliminate these evils. The doctrine of a single tax is of interest as advocating the abolition or confiscation of land value The cooperative conduct of industry is of increasing importance of late years. We must also reckon with socialism which seeks the redistribution of wealth. Under the general head of socialism, we shall have occasion to notice a small but active group known as the industrial workers of the world and the larger though related group which recently conducted a socialist experiment in Russia The discussion of socialism completed, we shall sum up the attitude of American democracy toward the whole problem of industrial reform 47. Social Problems Of the social problems which grow out of a bad economic situation none is more vital than the fostering of peace and goodwill between labor and capital. Following the discussion of industrial relations, we shall have occasion to notice a whole series of social questions which have either been derived from or accentuated by the rapid industrialization of our country Grave questions arise in connection with immigration health and the city were drift. The consideration of the problems of the city in turn directs attention to the necessity of a normal, rural life and to the importance of safeguarding the American home Dependency is a familiar problem but one which in the light of an awakened community spirit is now being studied from new and interesting angles Last among social problems is the fundamental matter of education It is not too much to claim that the ultimate fate of American democracy depends to a great extent upon the vigor and intelligence with which we improve and extend our educational system 48. Relation of Government to Business Since our material well being rests upon an economic basis the public has a vital interest in business or great corporations and the necessity of safeguarding the public from monopolistic abuses make necessary a careful examination into the relation of government to business We shall meet with this question Shall the government regulate or actually own businesses of vital importance to the public? Equally naughty but fully is interesting is the tariff question Should Congress tax foreign goods entering this country upon what principles should this tax be determined? This will bring us to the general problem of taxation, a subject to which the American people will probably devote an increasing amount of attention in the next few decades The question of conserving our national resources must also be discussed Last in this group of problems may be mentioned the question of money and banking In discussing this important subject we shall notice, among other things the interesting Federal Reserve System which it is hoped will protect us from panics in the future 49. Problems in effective government The Economist has good reason for declaring that the getting of a living is one of the most fundamental concerns in life On the other hand no people can long get a comfortable living without the aid of a helpful system of government Government must be made effective This introduces us to another series of problems. First of all who shall share in government and how may we improve the methods by which we select the agents of government, how may corruption and inefficiency be eliminated from American government What is the significance of the initiative the referendum and the recall These questions must prove a fascinating interest to those who think of democracy as a living institution which is constantly growing, developing adapting itself to changed conditions 50. What is the promise of American life Rich in natural resources ample in extent encouraging to man's helpful efforts America fulfills the first condition of national greatness intelligent and industrious law abiding and devoted to the building of homes our population fulfills the second condition Here we have all the raw materials out of which to build a great nation Already we have marked contributions to civilization and yet it should not be forgotten that our chief claim to national greatness rests upon the promise which we show of being able to perfect American democracy To what extent will this promise actually be realized As a nation we are yet young As a people we have scarcely begun the greatest experiment in democracy which the world has ever seen Shall we endure Shall we attain to a half success Shall we succeed gloriously Much depends upon the extent to which each of us assumes the responsibilities of citizenship Those who have gone before us conquered a wilderness expanded and preserved the union but it is not for us complacently to accept the result Much has been done but much more remains to be done Our goal is the greatest possible perfection of our economic, social and political life Each age may be said to have its peculiar burdens and responsibilities The prime task of the colonists was to foster the tender shoot of democracy that of the western pioneer was to fashion homes out of a wilderness The burden of our generation is to grapple with the present day problems of American democracy Without a high sense of personal equality coupled with an intelligent and consistent effort we can never reach the high goal admittedly possible 51. The point of view in problem study To see American democracy and to see it as a whole should be our aim throughout the remainder of this book Now, this is not easy The danger is that the unwary student will interpret the large amount of space devoted to problems that American life is preeminently unsettled and defective This is a temptation to be guarded against Though we shall uncover many defects it should be remembered that we are predominantly a normal healthy, prosperous people but our virtues demand our attention less urgently than do our defects If we seem to be over-concerned with the defects of American life the student should not conclude that American life is primarily defective Rather, he ought to realize that it is precisely because a situation involves a problem that our attention is challenged Nor should problems be looked upon as something to be ashamed of Where life is dull and civilization static, there are relatively few problems. Where life is progressive and civilization steadily advancing problems are numerous impressing. Problems imply adjustment, development the desire for improvement and advancement They are signs of progress the growing pains of civilization If we bear this in mind we shall be in a fair position to see American democracy in true perspective without undue distortion of our viewpoint and without prejudice to our judgment End of Chapter 5 Chapter 6 and 7 of Problems in American Democracy This is a LibriVox recording All LibriVox recordings are in the public domain. For more information or to volunteer, please visit LibriVox.org This reading by Allison Hester of Athens, Georgia Problems in American Democracy by Times Williamson Part 2 American Economic Principles A. Economics of American Industry Chapter 6 The Nature of American Industry 52 The Magnitude of American Industry In colonial times the major part of American industry was concentrated along the Atlantic Seabird Today it extends over a large part of the continent A century and a half ago our industrial system was still a relatively simple one giving rise to few pressing problems of national importance At the present time, it is a vast and complicated affair closely bound up with many of the most common problems which confront American Democracy These activities, which are commonly grouped under the head of American Industry are so numerous and so varied that a description of all of them would carry us beyond the limits of this chapter. Nevertheless it is important that we secure some understanding of these activities A few pages may profitably be spent, therefore, in discussing certain basic facts of American Industry Favorable Location of the United States Let us commence by noting that the location of the United States is favorable to the development of industry Of the two American continents the Northern has the greater natural advantages Each continent is roughly in the form of a triangle with the apex or smaller end pointing southward But, whereas the larger end of South America Triangle is within the tropic zone and not only the tapering end is within the more favorable temperate zone the greater part of the North American Triangle is within the temperate zone With regard to location for world trade the Northern continent again has the advantage The ports of South America face a relatively empty ocean on the west and the little developed continent of Africa on the east The ports of North America in addition to being more numerous and more suitable for commerce the North American continent face the teaming Orion on the west and the great markets of Europe on the east Moreover, the United States occupies the choicest portions of the North American continent Our neighbor Canada has a cold and snowbound frontier on her north while on our south Mexico and the Central American countries lie near the tropics The heart of temperate America on the other hand is within the United States 54. Population Scarcely less important than the favorable location of the United States is the character of the people occupying the country From less than 4 million in 1790 our population has increased so rapidly that in 1920 there were 105 million 710,620 people within the bounds of continental United States As the population has increased it has spread over the Appalachians into the great Mississippi Basin and westward to the Pacific Ocean Accompanying the increase in westward spread of the population has come a greater variety of racial types Although our population was varied in colonial times the great majority of the settlers were from the British Isles in northwestern Europe In the latter part of the 19th century immigration from northern Europe declined immigrants began to come from southern and southeastern Europe So universal has been the attraction of America that our present population includes elements from every important country in the world From the industrial standpoint the dominant characteristics of this composite American people are energy and versatility 55. National Wealth Generations of industrious people have helped to make the United States nation and the world It has been estimated that in 1850 our national wealth amounted to $8 billion By 1900 the remarkable progress of American industry has increased this figure to more than $88 billion In 1912 our wealth was probably in excess of $180 million Industrial and financial disturbances during the period of the world war later estimates hazardous Nevertheless, it is interesting to note that in 1921 the wealth of the United States was estimated as being between $350 billion and $400 billion According to this estimate the wealth of this country exceeded in 1921 the combined wealth of Great Britain, France, Germany, Italy and Belgium In weighing the value of this comparison however it must take into consideration the heavy destruction of wealth in western Europe because of the world war 56. What the American people are doing A large percentage of the inhabitants of the United States are engaged in some form of productive work According to the most recent estimate there are approximately 50 million persons, male and female over 10 years of age engaged in gainful occupations in this country Of these, about 14 million are engaged in agriculture and allied industries while more than 11 million are busy in manufacturing pursuits Almost 4 million are found in some form of trade and another 4 million are employed in domestic and personal service Transportation, clerical work and professional callings utilize the services of several additional million The great majority of those employed in the industry are men although the number of women in the industry is steadily increasing Children have been found in industrial pursuits since colonial times but of recent years there is a growing movement to restrict or prohibit the employment of children in gainful occupations 57. Forests and minerals The natural resources of the United States play a large part in our industrial life One fourth of the territory of the United States is still covered with timber We are abundantly supplied with coal and iron the two most important industrial minerals Our coal deposits outrank both in quantity and in quality those of any other country Iron is found in most of the states in the union the high grade deposits of the Lake Superior area being of special importance We produce more than half of the world supply of copper which, after coal and iron is the most important industrial mineral Our supply of petroleum and natural gas is large and, in spite of the waste which has characterized our use of these important commodities our production of both is still great Gold, silver, zinc, lead and phosphates are produced in the United States in large quantities Indeed, we have ample supplies of practically all of the minerals of importance to industry except platinum, tin and nickel 58, agriculture Until very recently at least agriculture has been by far our most important industry Of the two billion acres comprising continental United States approximately half are under cultivation In most sections of the country the quality of the soil is good and rainfall is ample We have long led the world in the value of farm crops grown Our production of wheat, corn, oats barley, rye and dairy products totals an enormous figure The steady enclosure of lands formerly used for grazing stock is restricting our production of food animals, but we are still important as a producer of meats Most of the world's tobacco is grown in this country The world's supply of cotton is derived mainly from the southern United States Finally, our soil is of such variety and our climate so diversified the danger of a general crop failure is slight A loss in one part of the country is almost certain to be offset by good crops in another 59, manufacturing In colonial times American manufacturers were subjected to more or less restraint by Great Britain but after the revolution these industries entered upon a period of free and rapid development Modern machinery was introduced rapidly after 1800 scale production was developed transportation was fostered and larger and larger markets were supplied with the products of American manufacturers particularly since the Civil War has the importance of our manufacturers increased This increase has been due cheaply to the large scale production of food stuffs including meats and flour textiles, iron and steel products, shoes chemicals and agricultural machinery According to recent census figures it would appear that we are passing from a predominantly agricultural life to a stage in which manufacturing is of relatively greater importance 60, transportation and communication The physical geography of the United States encourages the development of adequate means of transportation and communication The St. Lawrence Great Lake System gives easy access to the most fertile section of the continent in Mississippi and its tributaries drain a million square miles of farmland We have, in addition to 18,000 miles of navigable rivers a greater coastline available for commerce than has the whole of Europe New York is the world's greatest seaport Few mountain ranges hamper the development of transcontinental railroads in this country and of these only one, the Rockies is a serious obstacle to effective transportation The average is enormous A half dozen transcontinental lines being supplemented by numerous smaller roads and feeding lines We have more than 2,000 miles of canals in operation Cheap and rapid transportation between the different parts of the country supplemented by adequate means of communication by telephone, telegraph and a postal service undoubtedly has been one of the greatest factors in our national prosperity 61, domestic foreign trade The great majority of our products are not shipped to foreign markets but are utilized within the country We are still so young and so undeveloped a country that our manufacturers have been kept busy supplying the domestic market This fact, together with the American manufacturers lack of knowledge concerning the possibilities of foreign trade explains our neglect of foreign markets In proportion as our manufacturers catch up with the domestic market and in proportion as their knowledge of foreign market increases it is likely that they will give more and more attention to customers in other countries But, though a very small proportion of our products are sent abroad the foreign trade of the United States exceeds in value the foreign trade of any other country This predominance is due not so much to our search for foreign markets as to the steady demand in other countries for three classes of goods in the production of which we have a distinct advantage These three classes of goods are, first, raw materials of which we have a great abundance such as cotton and copper Second, specialties invented and patented by Americans such as inexpensive automobiles typewriters and phonographs And third, commodities which may be advantageously produced by large scale methods such as agricultural machinery and the cheaper grades of textiles Sixty-two, summary and forecast We have very briefly surveyed some of the basic facts of American industry On the one hand, the favorable location and the rich natural resources of the United States have furnished a substantial basis for industrial progress On the other hand, we must note that the American people are energetic and versatile, combining to a happy degree the qualities of initiative and originality perseverance and adaptability The great wealth and prosperity of the country as a whole have been the result of the combination of a favorable land and enable people This is not the whole of the story, of course It must be admitted that with all of our wealth we continue to face serious charges of poverty and industrial maladjustment These charges are of great importance but it should be remembered that no problem can be solved or even intelligently attacked until the essential facts are well in hand We have briefly described the nature of American industry What we now have to do as a preliminary to considering the problem of poverty and industrial reform is to analyze the economic laws in accordance with which American industry has developed The essential facts of the next four chapters cannot be weighed too carefully End of Chapter 6 Chapter 7 What is meant by production 63. Why men work Ultimately everyone depends upon work for his living Young children commonly live upon the earnings of their parents Most normal adults, on the other hand depend upon their own efforts for their living Since every individual probably works because of a combination of motives it is possible somewhat to analyze the reasons why men work The most fundamental reason for working is in order to preserve one's life This assured, the individual is in a position to work in order to preserve the lives of those who are near and dear to him When the necessities of life have been provided work is commonly continued for the sake of acquiring comforts or luxuries Under a well regulated legal system these efforts of the individual also benefit the community but until he is able to work himself and his family the average individual does not consciously make the public interest the chief end of his labors However altruistic a man may be he will not be able to labor consistently on behalf of others unless he will thereby serve his own interests or unless his personal needs have already been met 64. The old way of getting a living The economic history of the 18th century England illustrates two rather distinct methods of getting a living One of which may be called the old and the other the new Up to about the middle of the century the masses of Englishmen in common with the people of other countries got a very poor living Most common necessities were made in the home and were purely for family use Shoes, clothing, tools and similar articles were produced laboriously on a small scale In comparison with industrial conditions in the 19th century there was at that time little industrial cooperation footnote by cooperation is here meant simply the working together of different persons or groups of persons and a footnote little division of labor little suspicion that men were in spite of hard work engaged in for long hours getting a very poor living The trouble was partly that men had not yet fully realized the possibilities of helping one another and partly that they were ignorant of how to make nature really an efficient aid in getting them a living 65. The new way of getting a living After the middle of the 18th century the invention of a series of remarkable machines enabled Englishmen greatly to increase their productivity first in the manufacture of textiles and later in numerous other industries by subdividing their labor more and more and by each specializing in the particular type of work which he could do best men found that their total output could be greatly increased this complex division of labor made possible by the use of water and steam power to run machines and to move vehicles of transportation reduced the difficulty of getting a good living that it constituted a veritable revolution in industry Indeed, this change is known in history as the industrial revolution 66. Effects of the industrial revolution In the last century and a half the industrial revolution has spread to every important civilized country in the world everywhere encouraging the application of machine methods to more and more industries this change from production on a small scale and often by hand to large scale production and factories equipped with complex machines has had important results it has so increased our control over nature that even the humblest workmen of today enjoys many comforts denied kings a few centuries ago on the other hand, the industrial revolution has tended to create a numerous class which depends entirely upon wages and to set off against this class an employing group which possesses and controls most of the income producing equipment of the industry the significance of this last development will become clearer as we go along 67. Nature of modern production In the study of modern production two fundamental facts confront us the first is that the economist does not define production as merely the making of material objects we desire material objects only if they will satisfy our wants since also the satisfaction of wants is the important thing it is clear that the performance of a service such as teaching or painting may be more important than the manufacturer of a material object which no one wants production may thus be defined as the satisfaction of human wants the manufacturer of a material object is productive only if that object is wanted by someone he who supplies personal or professional service is productive if that service satisfies the wants of someone the second fundamental fact which confronts the student of modern production is the complexity of our industrial system 300 years ago most of the commodities in daily use were made either in the home and by the family members or by small groups of artisans working together under relatively simple conditions today production is a vast and complicated process to the eye of the untrained observer a great mass of factories farms, railroads, mills, machines ships and busy laborers appears without order and often without purpose the task immediately before us is to analyze this mass and to point out the nature of the various factors which contribute to the productive power of a community 68 nature a first factor in production nature is defined by the economist as inclusive of all of the materials and forces furnished in the form of land and its products oceans, lakes, rivers, rain humidity and climate nature is rather a vague term and since also the economist looks upon land as the most important element in nature we may lump together all of the materials and forces of nature and apply the term land taken in this sense land is clearly of great importance in production we build houses and factories upon it we use it as a basis of transportation we harness its mode of power and we make extensive use of the innumerable raw materials which it furnishes without land there could be no production in the sense in which the economist understands the word 69 man's labor a second factor in production something besides land or nature is necessary before our wants can be satisfied nature is often careless of our needs and desires true she offers us berries coal, firewood and many other commodities which are practically ready to use but even these articles will not satisfy our wants unless we go to the trouble to secure possession of them in an important sense nature is passive and if she is to furnish us with a living we must engage in labor this labor may be mental or physical the important point being that it is effort undertaken to increase our control over nature savages are content to use products and substantially the form in which nature provides them civilized peoples work over the products of nature until the utility or want satisfying power of those products has been greatly increased man's living improves as he progresses from indolence to hard physical labor and then from hard physical labor alone to a combination of physical and mental labor intelligently directed 70 capital a third factor in production land to furnish raw materials and man to make use of those materials what more is necessary nothing else would be necessary if all of nature's gifts were readily accessible and if man unaided could make the best use of them but nature hides or disguises many of her treasures and man is physically weak hence he has hit upon the device of making tools to help him in his contest with nature during the period of the industrial revolution many simple tools were supplanted by complicated devices run by power and called engines and machines to the economist tools and similar devices are a form of capital capital being defined as inclusive of everything which man has created or cause to be created in order to help in further production footnote land has not been created by man but is a gift of nature land therefore is not a form of capital end of footnote the fashioning of hammers and saws the construction of railways in the manufacture of machinery all these operations create capital the systematic creation and use of capital is one of the distinguishing features of modern civilization the laborer alone can produce little aided by capital he can produce much capital is not important but is willing to live like a savage on the other hand it is indispensable if one wishes to enjoy the benefits of civilization 71 coordination a fourth factor in production land, labor and capital are factors in production 200 years ago nothing else was essential to production the average individual had his own land produced his own tools or capital and relied chiefly entirely upon his own labor but the industrial revolution enlarged in complicated production it created an industrial system in which the individual is generally a specialist producing a surplus of his one product but depends upon numerous other persons for most of the things which he personally consumes today for example there are numerous individuals raising cattle the hides of which are to be made into shoes other individuals are perfecting means of transportation so that those hides may be carried to market still other persons concern themselves only with the building of factories or with the manufacture of machines with which to work those hides into shoes these various individuals and groups may never see each other nevertheless they aid one another the secret of this often unseen and unconscious cooperation with other individuals who specialize in the work of connecting up or coordinating the other factors which are necessary to the production of shoes these individuals about whom we shall have more to say in the next chapter constitute an important economic group they coordinate in the example given above the cattle grower the railroad manager the tanner the factory builder and the manufacturer and thus make possible a kind of national or even international cooperation which would otherwise be impossible those whose function it is to promote this cooperation are therefore indispensable factors in modern production 72 government a fifth factor in production a cursory examination of modern industry would convince the observer that land, labor, capital and coordination are important factors in production there is in addition a factor which is so fundamental and of such essential value that it is sometimes overlooked all together this is the work of the government in protecting productive enterprises government aid in production by suppressing theft, violence and fraud by allowing individuals to engage in helpful businesses by enforcing contracts entered into legally and by punishing many kinds of monopolistic abuses the whole fabric of American prosperity is built upon the foundation of law and order 73 summary and forecast production in the economic sense consists in doing that which will satisfy human wants modern production is a vast and complicated process involving the cooperation of five factors land, labor, capital coordination and government in a later chapter we shall find that there are wide differences of opinion as to the relative importance of some of these factors we shall find indeed that the most vital economic problems which confront American democracy depend for their solution upon a clear understanding of the facts stated or implied in this chapter the student ought not therefore to accept hastily the statement that land, labor, capital coordination and government are necessary in production but ought rather to reason out just how and why each is actually helpful in American industry End of Chapter 7