The independent. (Lincoln, Neb.) 1902-1907, March 26, 1903, Image 1
I i i Vol. XIV. ... M. i ay y? . LINCOLN; NEB., MARCH-26. 19Q3. . No. 44. POPULISM TRUE SOCIALISM jTolm A. Hobson's Lecture a UaiTersitr of - Nebraska Clearly Sustains the Pep allst CwateatUa - . , John A. Hobson of London, England, addressed a large audience at the old chapel, University bt Nebraska Tuest i day evening v (March 24); Mr. i Hob ; -son is the author of. "The War in South Africa: Its Causes and Effects," and has written a later book on "The Economics of , Dtribution": ;,He 13 regarded as among the strongest and clearest thinkers and writers on: po-, litical economy. At present he is en ' . gaged in a tour of the United States, studying the economic conditions jicre, -and incidentally lecturing before vari ous colleges and universities. For tunately for Nebraska he is a strong personal friend of Prof. Edward A. Ross, at the head of . the department of sociology, and this friendship , re sulted in giving the students ana citi zens of Lincoln the pleasure of hear ing his lecture otf "The True and False in Socialism." ; "'. t It was a red-letter event for the populists who were ; present; rathe? discomfitting for the Marxists, head ed by Dr. Aley; and the republicans, who have progressed no further than the "full dinner pail"' stage, were pleased without really knowing why, - Mr.- Hobson began by quoting from a statement made by a teacher to his class that the duty performed in the 19th century had - been the establish ment of a political democracy, and that the duty to be performed in the 20th century is to establish an econ omic democracy; but he felt that the 19th century task had not been fully performed and that much yet remains to be done before we can truthfully eay that a political democracy is com pleted. . , - - v..--'-. - , He then explained the laissez faire N doctrine of Adam Smith and showed that while this was seemingly good from a theoretical standpoint, yet nev ertheless it is faulty. He likened it to the efforts, of .men. to invent a ... ma-,'chine- of perpetual motion. Many of these v machines -were marvellously good, but the inventors always ignored one insignificant factor-friction. And , friction always stopped the machine. It is a mistake to suppose that self interest will always be sufficient to regulate the actions of capitalists and laborers so that competition will pro duce the greatest . benefits to society, because the conclusion is based upon the assumption that there is perfec fluidity in capital and labor which is not the case. Capitalists cannot al ways quickly abandon a business which is proving unprofitable and en gage in some other line; neither can laborers who have , learned one trade quickly change to another. Taking up the question of free com petition and the .right of free con tract, Mr. Hobson called attention to the earlier efforts to escape cut-throat competition by establishing private co-operative institutions which very naturally failed to accomplish the in tended end. He recounted the grow ing tendency in the last fifty years to interfere by legislation with the right of free contract factory,, acts and the like, and declared that the common doctrine that the interests of capital and labor are identical is only partly true, as is also the converse of that proposition. : It Is. not. to. the in terest of the employer, generally to pay "sweat-shop"' wages or treat his employes in such a way as to injure their productive capacity; it is not to the Interest of employes to demand an Increase of wages when the market U falling. But the point of conflict the friction which stops the perpetual mo tion machine of laissez faire always comes where a surplus is being pro duced above a fair return for both capital , and labor. It is to secure a share of. this surplus that labor un ions are organized; and - to , retain : it that counter-organizations . are . ef fected among the capitalists. ; In addition; to the interests of the capitalist and the laborer engaged in any industry, Mr. Hobson called at tention to the third party .' in inter estthe consuming - public; and b.? Bees danger to , the interests of thl-? third party in the. recent developmert of alliances between organization?! of capital " and organizations of labor, citing ; the glass trade in the United States as an example of what will doubtless be more common in the fu ture. ( If such an alliance . should bo made In one of the fundamental indus tries coal mining, for example it would be a menace to every other in dustry. It i is because of i this third party interest; that . there is no such thing as a strictly private business. ."Taking up the question of state so cialism (which is nothing else than populism) ; he: declares ; that control without ownership of the large indus tries,, especially Hhose which require a franchise,- is almost Impossible. As fast as one form of combination: am consolidation is tabooed by legislation, a new form is invented. The only solution finally will be municipal or state ownership, but the political democracy must be improved and per fected to go hand in hand with the economic democracy. He recalled tha', there is a much larger survival of the small businesses than many suppose, declaring that ihe giant businesses have simply thrown them in the sha dow. He reeognized that in many small businesses there seems to be no tendency to .grow larger to any con . siderable extent, and that in many large businesses there is no tendency toward combination and consolidation. In, these individual initiative would continue to prevail. He denied the correctness of the -"scientific" socialis demand for collective ownership of all the means of production and distribu tion and then: the: Marxists present lost all interest and felt that here was a brainy man acting as agent for the capitalists.-: v : : :j ' Summed up, Mr. Hobson's lecture was a pleasant surprise to the popul ists present. It was an academh presentation of populism with all ref erences to "the money power," "trust magnates,"' "railway kings," ; and "coal barons"- left out In every im portant particular it is in harmon with the position taken . by Dr. Ely, of the ' Wisconsin university, in his works.' It is, as John Graham Brooks says in "The Social Unrest," "the new consciousness of difference between a really,' private business, JUkea .gro cery store, and one that has ceased to .be private in that sense."-De France, THAT NEGRO PROBLEM Mr. Vance' Wrath is Aronsrd by Mr, D-..-.Hart's Article Lest Week . Editor Independent: For malig nant misrepresentation of fact, distor tion of truth, and unadulterated dema goguery, Mr. De Hart's article in last week's Independent Is the meanest specimen, since the crazy old days of abolitionism. I state but a simple truth when I say that 99 out of every 100 ""men in the south will cheerfully admit that Booker T. Washington is every way the peer of Theodore Roose velt The reason why Mr. Roosevelt's hospitality was criticised was that it was considered a chea.) piece of poll tics, intended to catch the southern negro vote in the n-jvt national re publican convention. v --':' Mr. De Hart's artic'o would convey the impression that the only amuse ment, pastime or recreation of the southern people consisted " in "burn ing negroes." Will : Mr. De Hartbe kind enough to point out what pun ishment, he as a man, -would inflict on the brute," be he black or white, who had assaulted his wife, sister, or daughter ? Colorado has burned ne groes for this crime. Nebraska has lynched both black and white men for criminal f assault, Illinois, ' Indiana, Ohi6, wherever : the crime has been committed, the same-fearful-retribution has followed. Does the gentle man consider, the punishment too se vere? or does he consider the crime a venal one to be punished by fine and imprisonment? The truth is, the sani crime would meet tha same punish ment in Massachusetts that it does 1 1 South Carolina - , - Bishop Turner, as grand a colored man as the African race can boast of. tells the negroes of thj south plainly that "the morals of the colored race are responsible for all the lvnchlngs and burnings that occur at the south." Whatever sentimental fools may say to the contrary, the enfranchisement of the negro at the time it. took place was a calamity to the colored race; it was not done as a measure of jus tice to the colored man; the freed man needed a hundred other .things worse than he did the ballot; he needed food and raimf nt; education, moral -train ing, civilization. His blind partisan ship,' his adherence to the republican party made the colored man a politi cal issue brought him in conflict with the keenest intelligence of the domi nant race. That he failed to carry the southern states for the republican par ty was a foregone conclusion, i At the north it was different. The solid negro vote at the north has kept the republican party in power for thir ty years. Mr. Roosevelt himself owes his election . to the colored vote of New York. Without this vote the re publican party could not carry a state outside of, New England. If Mr. Roosevelt were honest, if his party were honest, they would discharge their political debts by appointing col ored men to office at the north. Let Mr. Roosevelt "open the door of hope" by appointing a negro col lector of customs at New York city; or United States attorney for Delaware. Surely he could find e man to take Byrne's place who has twice been re jected by a republican senate. Could he not find "a $10 " 'boiled chestnut," "tin-tagged,"; Addicks negro who would be acceptable to a republican senate, every member of which owes his seat to the negro vote? If hot, why abuse southern men for refusing to swallow a pill that the northern man rejects with still greater loath ing? As good a republican organ as The Outlook has declared within tti last month that "the corrupt use made of the ignorant colored vote by Ad - dicks in the state of Delaware, more than justified the restrictions placed upon the ignorant-colored vote in sonn of the southern state." Mr. De Hart can doubtless look back to those halcyon days of negro su premacy when the r bonds of ,; South Carolina were being sold on the streets of. New. York for;7 cents on the dol lar. If Mr. De Hart 13 to be believed, thi3 costly experiment must be, tried again, , not . in the republican states where the party is in power ;by the grace . of the negro voto, but in the democratic states where he has failed to qualify and vote or we must pre pare for "a race war," 1 ,4 ..Massachusetts has . placed , greater, restriction upon the right of suffrage than either : Virginia or South Caro lina. Why not a race war In Masea chusetts? When Mr. De Hart says ,"a large section of the south wanted ne gro slavery and tariff for revenue only," he stated a plain falsehood, and in the following sentence, "The whites make the laws in the southern states, and they ought to make them in such a-way that men like Booker T. Wash ington at least can vote." Booker T. Washington and men very unlike Booker T. Washington can vote. Any man can vote in the southern states who has paid taxes and can read and write, regardless of rare, color or prev -ioiis condition. The restrictions ap ply to white men as well as colored, and need only be temporary. In conclusion, let me say the right of suffrage is a right conferred on the citizen by the state and not by the federal government The race war Mr. De Hart predicts can easily be avoided by a liberal application of the spelling book and reader "and follow ing the beaten paths of honest, patient industry. The disfranchisement of the negro is only temporary. The "door of hope" is only closed to ignor ance; vice and crime. V .. . ALEX-H. VANCE. Milford, Neb. , Pledging Candidates the Best System - The worker in charge of the maior- ity rule campaign in Texas writes : i ne only way to succeed is to have every, candidate pledged in writing before his nomination. This will be done with the candidates for the next legislature. Meanwhile some progress nas been made in cities, especially in Waco, where every candidate elected expressed himself favorably before hia nomination." v ' ' From Rhode Island a leading secre tary of organized labor writes: "The senate and house in this state are refusing to enact any measure whatever, They are pursuing the pol icy of 'dog in the manner The house consists of 36 republicans and 33 dem ocrats, the senate 18 republicans and 12 democrats, and no measure is al lowed to pass in either dace unless the boss 'says so.' " Try one of Branch & Miller's com bination orders for groceries. It will save you money. . . . . GOVERNMENT BAKIO GTrmeal Kagafred la Baaklag Bns! nessMd tke Reeks Kef aged IGot- ralag-Abstract He. Z j Editor Independent; ': No. S2 of the comptroller's abstract of Reports of National Bankers has-been; sent out This shows that, on February 6, the secretary of the treasury had : made deposit loans to the banks amount ing, exclusive of $7,341,226 of disburs ing officers'; deposits, to $140,493,423. The 62 central reserve city banks, all of which are In Now York, Chlca- go and St Louis, held $46,276,910 of these deposit loans. - - The 279 reserve city banks; In 31 reserve cities, held $41,213,688. So that the reserve city banks of both classes held $87,490,598. The remainder of these loans, $33,002,825, was distri buted among the 4.225 country banks. So far as the public knows anything about it, these loans are wholly with out interest. At least, the govern ment gets no interest In calculating the deposits to deter mine the amount of reserves required by law to be held, this entire sum of $140,493,423 is left out The abstract does not state this, and there is no way from its face that it could be known, but I have a letter from the comptroller dated March 13, 1903, in answer to an inquiry, that says this Is the fact ; ' .. - .. - W:v'.- ..- : That this is a clear violation of the law by Mr. Shaw -there can be no doubt It relieves the banks from holding a reserve against this large deposit loan. There can be f but one reason for doing it; and that reason ought to subject Mr. Shaw to im peachment. It is an attempt on th. part of Secretary Shaw and the ad- ministration to cover up the reserve , shortages of the banks. A large per cent of these banks, more than half, possibly three-fourths; particularly in the reserve cities, have ' been for months and years reporting short re serve,?. - SO far as the public has been Informed, no action has . been taken concerning mis nagrani violation or the bank law. If this deposit loan had not been excluded from the calcula- tion, there would have been 20 out of the 34 reserve cities that would have been shown to be short in their re quired reserves, and in a number of others the banker's surplus would nave been reduced to practically noth ing. As it is, the exclusion of ; this large sum could not prevent a short age appearing in the assreeate of each of twelve reserve cities. . There was not, at the expiration of the time covered by this abstract, a single dollar of the areresate bank er's surplus held by tne 4,766 national banks that was not covered by these deposit loans of the government If Mr. Shaw were to take out of these , b3nks the $140,493,423. it would take every dollar of the aggregate bank- ' er s surplus, and take $61,876,808 of the aggregate reserves. ; If. he were to draw out of the 279 reserve city banks the $41,213,688 of deposit loans, . It woum take every dollar of their ag gregate banker's sumlus. and take ' $32,566,494 of their aggregate reserves. ii ne were to draw out of the 62 central reserve city banks the $46,- ' 276,910 of government deoosit loam it would take every dollar of their ; aggregate banker's surplus, and take ; in addition $20,608,470 of, their aggre gate reserves, as shown bv this ab stract . It is shown by this abstract that, tn the face of thi3 condition, the national banks have, during the, 73 days cov ered by it, increased their loans and discounts $47,749,653. or an ncrnz nt over $654,000 per dav nnt MolnNnjr . Sundays. .. It is important not to over- iook tne ract that over $32,000,000 of this amount Is an inc.-ease hv th ai - New York banks alone . The reckless disregard of miblic In terest and of possible manifested by the crowd of New York stock gamblers i3 astounding. Our administrative and lefrtslnMvA departments of government harp in blind ignorance or dishonesty, listened ' io me seinsn aavice and demands of " the asnrrppntinno nf financial ulators. until the sitnatlnn hna ho. come alarming even to them. No wonder these New York stock gam bling bankers were anxious about leg islation during the closinz congTess. No wonder, when they found they could not secure the passage of w 7T