What they have done for individuals, they also wanted to do for nations. Humanity was to be divided into national workshops, having each its speciality. Russia, we were taught, was destined by nature to grow corn; England to spin cotton; Belgium to weave cloth; while Switzerland was to train nurses and governesses. Moreover, each separate city was to establish a specialty. Lyons was to weave silk, Auvergne to make lace, and Paris fancy articles. In this way, economists said, an immense field was opened for production and consumption, and in this way an era of limitless wealth for mankind was at hand.
However, these great hopes vanished as fast as technical knowledge spread abroad. As long as England stood alone as a weaver of cotton and as a metalworker on a large scale; as long as only Paris made artistic fancy articles, etc., all went well, economists could preach the so-called division of labour without being refuted.
But a new current of thought induced bye and bye all civilized nations to manufacture for themselves. They found it advantageous to produce what they formerly received from other countries, or from their colonies, which in their turn aimed at emancipating themselves from the mother-country. Scientific discoveries universalized the methods of production, and henceforth it was useless to pay an exorbitant price abroad for what could easily be produced at home. And now we see already that this industrial revolution strikes a crushing blow at the theory of the division of labour which for a long time was supposed to be so sound.
XVI
The Decentralization of Industry10
I
After the Napoleonic wars Britain had nearly succeeded in ruining the main industries which had sprung up in France at the end of the preceding century. She also became mistress of the seas and had no rivals of importance. She took in the situation, and knew how to turn its privileges and advantages to account. She established an industrial monopoly, and, imposing upon her neighbours her prices for the goods she alone could manufacture, accumulated riches upon riches.
But as the middle-class Revolution of the eighteenth century had abolished serfdom and created a proletariat in France, French industry, hampered for a time in its flight, soared again, and from the second half of the nineteenth century France ceased to be a tributary of England for manufactured goods. Today she too has grown into a nation with an export trade. She sells far more than 60,000,000 pounds’ worth of manufactured goods, and two-thirds of these goods are fabrics. The number of Frenchmen working for export or living by their foreign trade, is estimated at 3,000,000.
France is therefore no longer England’s tributary. In her turn she has striven to monopolize certain branches of foreign industry, such as silks and ready-made clothes, and has reaped immense profits therefrom; but she is on the point of losing this monopoly forever, just as England is on the point of losing the monopoly of cotton goods.
Travelling eastwards, industry has reached Germany. Fifty years ago Germany was a tributary of England and France for most manufactured commodities in the higher branches of industry. It is no longer so. In the course of the last fifty years, and especially since the Franco-German war, Germany has completely reorganized her industry. The new factories are stocked with the best machinery; the latest creations of industrial art in cotton goods from Manchester, or in silks from Lyons, etc., are now realized in new German factories. It took two or three generations of workers, at Lyons and Manchester, to construct the modern machinery; but Germany adopted it in its perfected state. Technical schools, adapted to the needs of industry, supply the factories with an army of intelligent workmen—practical engineers, who can work with both hand and brain. German industry starts at the point which was only reached by Manchester and Lyons after fifty years of groping in the dark, of exertion and experiments.
It follows that since Germany manufactures so well at home, she diminishes her imports from France and England year by year. She has not only become their rival in manufactured goods in Asia and in Africa, but also in London and in Paris. Shortsighted people in France may cry out against the Frankfort Treaty; English manufacturers may explain German competition by little differences in railway tariffs; they may linger on the petty side of questions, and neglect great historical facts. But it is none the less certain that the main industries, formerly in the hands of England and France, have progressed eastward, and in Germany they have found a country, young, full of energy, possessing an intelligent middle class, and eager in its turn to enrich itself by foreign trade.
While Germany has freed herself from subjection to France and England, has manufactured her own cotton-cloth, and constructed her own machines—in fact, manufactured all commodities—the main industries have also taken root in Russia, where the development of manufacture is the more instructive as it sprang up but yesterday.
At the time of the abolition of serfdom in 1861, Russia had hardly any factories. Everything needed in the way of machines, rails, railway-engines, fine dress materials, came from the West. Twenty years later she possessed already 85,000 factories, and the value of the goods manufactured in Russia had increased fourfold.
The old machinery was superseded, and now nearly all the steel in use in Russia, three-quarters of the iron, two-thirds of the coal, all railway-engines, railway-carriages,
