What does our baron do to enrich himself? He looks out for peasants—for poor peasants!
If every peasant-farmer had a piece of land, free from rent and taxes, if he had in addition the tools and the stock necessary for farm labour—Who would plough the lands of the baron? Everyone would look after his own. But there are thousands of destitute persons ruined by wars, or drought, or pestilence. They have neither horse nor plough. (Iron was very costly in the Middle Ages, and a draught-horse still more so.)
All these destitute creatures are trying to better their condition. One day they see on the road at the confines of our baron’s estate a notice-board indicating by certain signs adapted to their comprehension that the labourer who is willing to settle on his estate will receive the tools and materials to build his cottage and sow his fields, and a portion of land rent free for a certain number of years. The number of years is represented by so many crosses on the signboard, and the peasant understands the meaning of these crosses.
So the poor wretches come to settle on the baron’s lands. They make roads, drain the marshes, build villages. In nine or ten years the baron begins to tax them. Five years later he increases the rent. Then he doubles it, and the peasant accepts these new conditions because he cannot find better ones elsewhere. Little by little, with the aid of laws made by the barons, the poverty of the peasant becomes the source of the landlord’s wealth. And it is not only the lord of the manor who preys upon him. A whole host of usurers swoop down upon the villages, multiplying as the wretchedness of the peasants increases. That is how these things happened in the Middle Ages. And today is it not still the same thing? If there were free lands which the peasant could cultivate if he pleased, would he pay £50 to some “shabble of a Duke”2 for condescending to sell him a scrap? Would he burden himself with a lease which absorbed a third of the produce? Would he—on the métayer system—consent to give half of his harvest to the landowner?
But he has nothing. So he will accept any conditions, if only he can keep body and soul together, while he tills the soil and enriches the landlord.
So in the nineteenth century, just as in the Middle Ages, the poverty of the peasant is a source of wealth to the landed proprietor.
II
The landlord owes his riches to the poverty of the peasants, and the wealth of the capitalist comes from the same source.
Take the case of a citizen of the middle class, who somehow or other finds himself in possession of £20,000. He could, of course, spend his money at the rate of £2,000 a year, a mere bagatelle in these days of fantastic, senseless luxury. But then he would have nothing left at the end of ten years. So, being a “practical person,” he prefers to keep his fortune intact, and win for himself a snug little annual income as well.
This is very easy in our society, for the good reason that the towns and villages swarm with workers who have not the wherewithal to live for a month, or even a fortnight. So our worthy citizen starts a factory. The banks hasten to lend him another £20,000, especially if he has a reputation for “business ability”; and with this round sum he can command the labour of 500 hands.
If all the men and women in the countryside had their daily bread assured, and their daily needs already satisfied, who would work for our capitalist at a wage of half a crown a day, while the commodities one produces in a day sell in the market for a crown or more?
Unhappily—we know it all too well—the poor quarters of our towns and the neighbouring villages are full of needy wretches, whose children clamour for bread. So, before the factory is well finished, the workers hasten to offer themselves. Where a hundred are required three hundred besiege the doors, and from the time his mill is started, the owner, if he only has average business capacities, will clear £40 a year out of each mill-hand he employs.
He is thus able to lay by a snug little fortune; and if he chooses a lucrative trade, and has “business talents,” he will soon increase his income by doubling the number of men he exploits.
So he becomes a personage of importance. He can afford to give dinners to other personages—to the local magnates, the civic, legal, and political dignitaries. With his money he can “marry money”; by and by he may pick and choose places for his children, and later on perhaps get something good from the Government—a contract for the army or for the police. His gold breeds gold; till at last a war, or even a rumour of war, or a speculation on the Stock Exchange, gives him his great opportunity.
Nine-tenths of the great fortunes made in the United States are (as Henry George has shown in his Social Problems) the result of knavery on a large scale, assisted by the State. In Europe, nine-tenths of the fortunes made in our monarchies and republics have the same origin. There are not two ways of becoming a millionaire.
This is the secret of wealth: find the starving and destitute, pay them half a crown, and make them produce five shillings worth in the day, amass a fortune by these means, and then increase it by some lucky speculation, made with the help of the State.
Need we go on to speak of small fortunes attributed by the economists to forethought and frugality, when we know that mere saving in itself brings in nothing, so long as the pence saved are not used to exploit the famishing?
Take a shoemaker, for instance. Grant that his work is well paid, that
