The Iron Heel Jack London (free children's ebooks online .TXT) 📖

the regular troops of the United States.’

“There you are gentlemen, American citizens, and fellow-militiamen. Nine years ago we socialists thought that law was aimed against labor. But it would seem that it was aimed against you, too. Congressman Wiley, in the brief discussion that was permitted, said that the bill ‘provided for a reserve force to take the mob by the throat’⁠—you’re the mob, gentlemen⁠—‘and protect at all hazards life, liberty, and property.’ And in the time to come, when you rise in your strength, remember that you will be rising against the property of the trusts, and the liberty of the trusts, according to the law, to squeeze you. Your teeth are pulled, gentlemen. Your claws are trimmed. In the day you rise in your strength, toothless and clawless, you will be as harmless as any army of clams.”

“I don’t believe it!” Kowalt cried. “There is no such law. It is a canard got up by you socialists.”

“This bill was introduced in the House of Representatives on July 30, 1902,” was the reply. “It was introduced by Representative Dick of Ohio. It was rushed through. It was passed unanimously by the Senate on January 14, 1903. And just seven days afterward was approved by the President of the United States.”58

IX The Mathematics of a Dream

In the midst of the consternation his revelation had produced, Ernest began again to speak.

“You have said, a dozen of you tonight, that socialism is impossible. You have asserted the impossible, now let me demonstrate the inevitable. Not only is it inevitable that you small capitalists shall pass away, but it is inevitable that the large capitalists, and the trusts also, shall pass away. Remember, the tide of evolution never flows backward. It flows on and on, and it flows from competition to combination, and from little combination to large combination, and from large combination to colossal combination, and it flows on to socialism, which is the most colossal combination of all.

“You tell me that I dream. Very good. I’ll give you the mathematics of my dream; and here, in advance, I challenge you to show that my mathematics are wrong. I shall develop the inevitability of the breakdown of the capitalist system, and I shall demonstrate mathematically why it must break down. Here goes, and bear with me if at first I seem irrelevant.

“Let us, first of all, investigate a particular industrial process, and whenever I state something with which you disagree, please interrupt me. Here is a shoe factory. This factory takes leather and makes it into shoes. Here is one hundred dollars’ worth of leather. It goes through the factory and comes out in the form of shoes, worth, let us say, two hundred dollars. What has happened? One hundred dollars has been added to the value of the leather. How was it added? Let us see.

“Capital and labor added this value of one hundred dollars. Capital furnished the factory, the machines, and paid all the expenses. Labor furnished labor. By the joint effort of capital and labor one hundred dollars of value was added. Are you all agreed so far?”

Heads nodded around the table in affirmation.

“Labor and capital having produced this one hundred dollars, now proceed to divide it. The statistics of this division are fractional; so let us, for the sake of convenience, make them roughly approximate. Capital takes fifty dollars as its share, and labor gets in wages fifty dollars as its share. We will not enter into the squabbling over the division.59 No matter how much squabbling takes place, in one percentage or another the division is arranged. And take notice here, that what is true of this particular industrial process is true of all industrial processes. Am I right?”

Again the whole table agreed with Ernest.

“Now, suppose labor, having received its fifty dollars, wanted to buy back shoes. It could only buy back fifty dollars’ worth. That’s clear, isn’t it?

“And now we shift from this particular process to the sum total of all industrial processes in the United States, which includes the leather itself, raw material, transportation, selling, everything. We will say, for the sake of round figures, that the total production of wealth in the United States is one year is four billion dollars. Then labor has received in wages, during the same period, two billion dollars. Four billion dollars has been produced. How much of this can labor buy back? Two billions. There is no discussion of this, I am sure. For that matter, my percentages are mild. Because of a thousand capitalistic devices, labor cannot buy back even half of the total product.

“But to return. We will say labor buys back two billions. Then it stands to reason that labor can consume only two billions. There are still two billions to be accounted for, which labor cannot buy back and consume.”

“Labor does not consume its two billions, even,” Mr. Kowalt spoke up. “If it did, it would not have any deposits in the savings banks.”

“Labor’s deposits in the savings banks are only a sort of reserve fund that is consumed as fast as it accumulates. These deposits are saved for old age, for sickness and accident, and for funeral expenses. The savings bank deposit is simply a piece of the loaf put back on the shelf to be eaten next day. No, labor consumes all of the total product that its wages will buy back.

“Two billions are left to capital. After it has paid its expenses, does it consume the remainder? Does capital consume all of its two billions?”

Ernest stopped and put the question point blank to a number of the men. They shook their heads.

“I don’t know,” one of them frankly said.

“Of course you do,” Ernest went on. “Stop and think a moment. If capital consumed its share, the sum total of capital could not increase. It would remain constant. If you will look at the economic history of the United States, you