Liberalism Part 2

That is right which conforms to it, that is wrong which conflicts with it. The greatest happiness principle is the one and supreme principle of conduct. Observe that it imposes on us two considerations. One is the _greatest_ happiness. Now happiness is defined as consisting positively in the presence of pleasure, negatively in the absence of pain. A greater pleasure is then preferable to a lesser, a pleasure unaccompanied by pain to one involving pain. Conceiving pain as a minus quant.i.ty of pleasure, we may say that the principle requires us always to take quant.i.ty and pleasure into account, and nothing else. But, secondly, the _number_ of individuals affected is material. An act might cause pleasure to one and pain to two. Then it is wrong, unless, indeed, the pleasure were very great and the pain in each case small. We must balance the consequences, taking all individuals affected into account, and "everybody must count for one and n.o.body for more than one." This comment is an integral part of the original formula. As between the happiness of his father, his child, or himself, and the happiness of a stranger, a man must be impartial. He must only consider the quant.i.ty of pleasure secured or pain inflicted.

Now, in this conception of measurable quant.i.ties of pleasure and pain there is, as many critics have insisted, something unreal and academic.

We shall have to return to the point, but let us first endeavour to understand the bearing of Bentham's teaching on the problems of his own time and on the subsequent development of Liberal thought. For this purpose we will keep to what is real in his doctrine, even if it is not always defined with academic precision. The salient points that we note, then, are (1) the subordination of all considerations of right to the considerations of happiness, (2) the importance of number, and (3) as the other side of the same doctrine, the insistence on equality or impartiality between man and man. The common utility which Bentham considers is the happiness experienced by a number of individuals, all of whom are reckoned for this purpose as of equal value. This is the radical individualism of the Benthamite creed, to be set against that socialistic tendency which struck us in our preliminary account.

In this individualism, equality is fundamental. Everybody is to count for one, n.o.body for more than one, for every one can feel pain and pleasure. Liberty, on the other hand, is not fundamental, it is a means to an end. Popular sovereignty is not fundamental, for all government is a means to an end. Nevertheless, the school of Bentham, upon the whole, stood by both liberty and democracy. Let us consider their att.i.tude.

As to popular government, Bentham and James Mill reasoned after this fas.h.i.+on. Men, if left to themselves, that is to say, if neither trained by an educational discipline nor checked by responsibility, do not consider the good of the greatest number. They consider their own good.

A king, if his power is unchecked, will rule in his own interest. A cla.s.s, if its power is unchecked, will rule in its own interest. The only way to secure fair consideration for the happiness of all is to allow to all an equal share of power. True, if there is a conflict the majority will prevail, but they will be moved each by consideration of his own happiness, and the majority as a whole, therefore, by the happiness of the greater number. There is no inherent right in the individual to take a part in government. There is a claim to be considered in the distribution of the means of happiness, and to share in the work of government as a means to this end. It would follow, among other things, that if one man or one cla.s.s could be shown to be so much wiser and better than others that his or their rule would, in fact, conduce more to the happiness of the greater number than a popular system, then the business of government ought to be entrusted to that man or that cla.s.s and no one else ought to interfere with it.

The whole argument, however, implies a crude view of the problem of government. It is, of course, theoretically possible that a question should present itself, detached from other questions, in which a definite measurable interest of each of the seven millions or more of voters is at stake. For example, the great majority of English people drink tea. Comparatively few drink wine. Should a particular sum be raised by a duty on tea or on wine? Here the majority of tea-drinkers have a measurable interest, the same in kind and roughly the same in degree for each; and the vote of the majority, if it could be taken on this question alone and based on self-interest alone, might be conceived without absurdity as representing a sum of individual interests. Even here, however, observe that, though the greatest number is considered, the greatest happiness does not fare so well. For to raise the same sum the tax on wine will, as less is drunk, have to be much larger than the tax on tea, so that a little gain to many tea-drinkers might inflict a heavy loss on the few wine-drinkers, and on the Benthamite principle it is not clear that this would be just. In point of fact it is possible for a majority to act tyrannically, by insisting on a slight convenience to itself at the expense, perhaps, of real suffering to a minority. Now the Utilitarian principle by no means justifies such tyranny, but it does seem to contemplate the weighing of one man's loss against another's gain, and such a method of balancing does not at bottom commend itself to our sense of justice. We may lay down that if there is a rational social order at all it must be one which never rests the essential indispensable condition of the happiness of one man on the unavoidable misery of another, nor the happiness of forty millions of men on the misery of one. It may be temporarily expedient, but it is eternally unjust, that one man should die for the people.

We may go further. The case of the contemplated tax is, as applied to the politics of a modern State, an unreal one. Political questions cannot be thus isolated. Even if we could vote by referendum on a special tax, the question which voters would have to consider would never be the revenue from and the incidence of that tax alone. All the indirect social and economic bearings of the tax would come up for consideration, and in the ill.u.s.tration chosen people would be swayed, and rightly swayed, by their opinion, for example, of the comparative effects of tea-drinking and wine-drinking. No one element of the social life stands separate from the rest, any more than any one element of the animal body stands separate from the rest. In this sense the life of society is rightly held to be organic, and all considered public policy must be conceived in its bearing on the life of society as a whole. But the moment that we apply this view to politics, the Benthamite mode of stating the case for democracy is seen to be insufficient. The interests of every man are no doubt in the end bound up with the welfare of the whole community, but the relation is infinitely subtle and indirect.

Moreover, it takes time to work itself out, and the evil that is done in the present day may only bear fruit when the generation that has done it has pa.s.sed away. Thus, the direct and calculable benefit of the majority may by no means coincide with the ultimate good of society as a whole; and to suppose that the majority must, on grounds of self-interest, govern in the interests of the community as a whole is in reality to attribute to the ma.s.s of men full insight into problems which tax the highest efforts of science and of statesmans.h.i.+p. Lastly, to suppose that men are governed entirely by a sense of their interests is a many-sided fallacy. Men are neither so intelligent nor so selfish. They are swayed by emotion and by impulse, and both for good and for evil they will lend enthusiastic support to courses of public policy from which, as individuals, they have nothing to gain. To understand the real value of democratic government, we shall have to probe far deeper into the relations of the individual and society.

I turn lastly to the question of liberty. On Benthamite principles there could be no question here of indefeasible individual right. There were even, as we saw, possibilities of a thorough-going Socialism or of an authoritarian paternalism in the Benthamite principle. But two great considerations told in the opposite direction. One arose from the circ.u.mstances of the day. Bentham, originally a man of somewhat conservative temper, was driven into Radicalism comparatively late in life by the indifference or hostility of the governing cla.s.ses to his schemes of reform. Government, as he saw it, was of the nature of a close corporation with a vested interest hostile to the public weal, and his work is penetrated by distrust of power as such. There was much in the history of the time to justify his att.i.tude. It was difficult at that time to believe in an honest officialdom putting the commonwealth above every personal or corporate interest, and reformers naturally looked to individual initiative as the source of progress. Secondly, and this was a more philosophic argument, the individual was supposed to understand his own interest best, and as the common good was the sum of individual interests, it followed that so far as every man was free to seek his own good, the good of the greatest number would be most effectually realized by general freedom of choice. That there were difficulties in reconciling self-interest with the general good was not denied. But men like James Mill, who especially worked at this side of the problem, held that they could be overcome by moral education.

Trained from childhood to a.s.sociate the good of others with his own, a man would come, he thought, to care for the happiness of others as for the happiness of self. For, in the long run, the two things were coincident. Particularly in a free economic system, as remarked above, each individual, moving along the line of greatest personal profit, would be found to fulfil the function of greatest profit to society. Let this be understood, and we should have true social harmony based on the spontaneous operation of personal interest enlightened by intelligence and chastened by the discipline of unruly instinct.

Thus, though their starting-point was different, the Benthamites arrived at practical results not notably divergent from those of the doctrine of natural liberty; and, on the whole, the two influences worked together in the formation of that school who in the reform period exercised so notable an influence on English Liberalism, and to whose work we must now turn.

FOOTNOTES:

[4] _Cf._ the preamble to the Declaration of the Rights of Man by the French National a.s.sembly in 1789. The a.s.sembly lays down "the natural, inalienable, and sacred rights of man," in order, among other things, "that the acts of the legislative power and those of the executive power, being capable of being at every instant compared with the end of every political inst.i.tution, may be more respected accordingly."

[5] The comparison of the Declaration of the a.s.sembly in 1789 with that of the Convention in 1793 is full of interest, both for the points of agreement and difference, but would require a lengthy examination. I note one or two points in pa.s.sing.

[6] Contrast 1793, Art. I: "The end of society is the common happiness.

Government is inst.i.tuted to guarantee to man the enjoyment of his natural and imprescriptible rights."

CHAPTER IV

'LAISSEZ-FAIRE'

The school of Cobden is affiliated in general outlook both to the doctrine of natural liberty and to the discipline of Bentham. It shared with the Benthamites the thoroughly practical att.i.tude dear to the English mind. It has much less to say of natural rights than the French theorists. On the other hand, it is saturated with the conviction that the unfettered action of the individual is the mainspring of all progress.[7] Its starting-point is economic. Trade is still in fetters.

The worst of the archaic internal restrictions have, indeed, been thrown off. But even here Cobden is active in the work of finally emanc.i.p.ating Manchester from manorial rights that have no place in the nineteenth century. The main work, however, is the liberation of foreign trade. The Corn Laws, as even the tariff reformers of our own day admit, were conceived in the interest of the governing cla.s.ses. They frankly imposed a tax on the food of the ma.s.ses for the benefit of the landlords, and as the result of the agricultural and industrial revolutions which had been in progress since 1760, the ma.s.ses had been brought to the lowest point of economic misery. Give to every man the right to buy in the cheapest and sell in the dearest market, urged the Cobdenite, and trade would automatically expand. The business career would be open to the talents. The good workman would command the full money's worth of his work, and his money would buy him food and clothing at the lowest rate in the world's market. Only so would he get the full value of his work, paying toll to none. Taxes there must be to carry on government, but if we looked into the cost of government we found that it depended mostly on armaments. Why did we need armaments? First, because of the national antagonisms aroused and maintained by a protective system. Free commercial intercourse between nations would engender mutual knowledge, and knit the severed peoples by countless ties of business interests. Free Trade meant peace, and once taught by the example of Great Britain's prosperity, other nations would follow suit, and Free Trade would be universal. The other root of national danger was the principle of intervention. We took it on ourselves to set other nations right. How could we judge for other nations? Force was no remedy. Let every people be free to work out its own salvation. Things were not so perfect with us that we need go about setting the houses of other people in order. To complete personal freedom, there must be national freedom. There must also be colonial freedom. The colonies could no longer be governed in the interests of the mother country, nor ought they to require standing garrisons maintained by the mother country. They were distant lands, each, if we gave it freedom, with a great future of its own, capable of protecting itself, and developing with freedom into true nationhood. Personal freedom, colonial freedom, international freedom, were parts of one whole. Non-intervention, peace, restriction of armaments, retrenchment of expenditure, reduction of taxation, were the connected series of practical consequences. The money retrenched from wasteful military expenditure need not all be remitted to the taxpayer. A fraction of it devoted to education--free, secular, and universal--would do as much good as when spent on guns and s.h.i.+ps it did harm. For education was necessary to raise the standard of intelligence, and provide the substantial equality of opportunity at the start without which the ma.s.s of men could not make use of the freedom given by the removal of legislative restrictions. There were here elements of a more constructive view for which Cobden and his friends have not always received sufficient credit.

In the main, however, the teaching of the Manchester school tended both in external and in internal affairs to a restricted view of the function of government. Government had to maintain order, to restrain men from violence and fraud, to hold them secure in person and property against foreign and domestic enemies, to give them redress against injury, that so they may rely on reaping where they have sown, may enjoy the fruits of their industry, may enter unimpeded into what arrangements they will with one another for their mutual benefit. Let us see what criticism was pa.s.sed on this view by the contemporaries of Cobden and by the loud voice of the facts themselves. The old economic regime had been in decay throughout the eighteenth century. The divorce of the labourer from the land was complete at the time when the Anti-Corn Law League was formed.

The ma.s.s of the English peasantry were landless labourers working for a weekly wage of about ten or twelve s.h.i.+llings, and often for a good deal less. The rise of machine industry since 1760 had destroyed the old domestic system and reduced the operative in the towns to the position of a factory hand under an employer, who found the road to wealth easy in the monopoly of manufacture enjoyed by this country for two generations after the Napoleonic war. The factory system early brought matters to a head at one point by the systematic employment of women and young children under conditions which outraged the public conscience when they became known. In the case of children it was admitted from an early date, it was urged by Cobden himself, that the principle of free contract could not apply. Admitting, for the sake of argument, that the adult could make a better bargain for himself or herself than any one could do for him or her, no one could contend that the pauper child apprenticed by Poor Law guardians to a manufacturer had any say or could have any judgment as to the work which it was set to do. It had to be protected, and experience showed that it had to be protected by law.

Free contract did not solve the question of the helpless child. It left it to be "exploited" by the employer in his own interest, and whatever regard might be shown for its health and well-being by individuals was a matter of individual benevolence, not a right secured by the necessary operation of the system of liberty.

But these arguments admitted of great extension. If the child was helpless, was the grown-up person, man or woman, in a much better position? Here was the owner of a mill employing five hundred hands.

Here was an operative possessed of no alternative means of subsistence seeking employment. Suppose them to bargain as to terms. If the bargain failed, the employer lost one man and had four hundred and ninety-nine to keep his mill going. At worst he might for a day or two, until another operative appeared, have a little difficulty in working a single machine. During the same days the operative might have nothing to eat, and might see his children going hungry. Where was the effective liberty in such an arrangement? The operatives themselves speedily found that there was none, and had from an early period in the rise of the machine industry sought to redress the balance by combination. Now, combination was naturally disliked by employers, and it was strongly suspect to believers in liberty because it put constraint upon individuals. Yet trade unions gained the first step in emanc.i.p.ation through the action of Place and the Radicals in 1824, more perhaps because these men conceived trade unions as the response of labour to oppressive laws which true freedom of compet.i.tion would render superfluous than because they founded any serious hopes of permanent social progress upon Trade Unionism itself. In point of fact, the critical att.i.tude was not without its justification. Trade Unionism can be protective in spirit and oppressive in action. Nevertheless, it was essential to the maintenance of their industrial standard by the artisan cla.s.ses, because it alone, in the absence of drastic legislative protection, could do something to redress the inequality between employer and employed. It gave, upon the whole, far more freedom to the workman than it took away, and in this we learn an important lesson which has far wider application. In the matter of contract true freedom postulates substantial equality between the parties. In proportion as one party is in a position of vantage, he is able to dictate his terms. In proportion as the other party is in a weak position, he must accept unfavourable terms. Hence the truth of Walker's dictum that economic injuries tend to perpetuate themselves. The more a cla.s.s is brought low, the greater its difficulty in rising again without a.s.sistance. For purposes of legislation the State has been exceedingly slow to accept this view. It began, as we saw, with the child, where the case was overwhelming. It went on to include the "young person" and the woman--not without criticism from those who held by woman's rights, and saw in this extension of tutelage an enlargement of male domination.

Be that as it may, public opinion was brought to this point by the belief that it was intervening in an exceptional manner to protect a definite cla.s.s not strong enough to bargain for itself. It drew the line at the adult male; and it is only within our own time, and as the result of a controversy waged for many years within the trade union world itself, that legislation has avowedly undertaken the task of controlling the conditions of industry, the hours, and at length, through the inst.i.tution of Wages Boards in "sweated industries," the actual remuneration of working people without limitation of age or s.e.x. To this it has been driven by the manifest teaching of experience that liberty without equality is a name of n.o.ble sound and squalid result.

In place of the system of unfettered agreements between individual and individual which the school of Cobden contemplated, the industrial system which has actually grown up and is in process of further development rests on conditions prescribed by the State, and within the limits of those conditions is very largely governed by collective arrangements between a.s.sociations of employers and employed. The law provides for the safety of the worker and the sanitary conditions of employment. It prescribes the length of the working day for women and children in factories and workshops, and for men in mines and on railways.[8] In the future it will probably deal freely with the hours of men. It enables wages boards to establish a legal minimum wage in scheduled industries which will undoubtedly grow in number. It makes employers liable for all injuries suffered by operatives in the course of their employment, and forbids any one to "contract out" of this obligation. Within these limits, it allows freedom of contract. But at this point, in the more highly developed trades, the work is taken up by voluntary a.s.sociations. Combinations of men have been met by combinations of employers, and wages, hours, and all the details of the industrial bargain are settled by collective agreement through the agency of a joint board with an impartial chairman or referee in case of necessity for an entire locality and even an entire trade. So far have we gone from the free compet.i.tion of isolated individuals.

This development is sometimes held to have involved the decay and death of the older Liberalism. It is true that in the beginning factory legislation enjoyed a large measure of Conservative support. It was at that stage in accordance with the best traditions of paternal rule, and it commended itself to the religious convictions of men of whom Lord Shaftesbury was the typical example. It is true, also, that it was bitterly opposed by Cobden and Bright. On the other hand, Radicals like J. Cam Hobhouse took a leading part in the earlier legislation, and Whig Governments pa.s.sed the very important Acts of 1833 and 1847. The cleavage of opinion, in fact, cut across the ordinary divisions of party. What is more to the purpose is that, as experience ripened, the implications of the new legislation became clearer, and men came to see that by industrial control they were not destroying liberty but confirming it. A new and more concrete conception of liberty arose and many old presuppositions were challenged.

Let us look for a moment at these presuppositions. We have seen that the theory of _laissez-faire_ a.s.sumed that the State would hold the ring.

That is to say, it would suppress force and fraud, keep property safe, and aid men in enforcing contracts. On these conditions, it was maintained, men should be absolutely free to compete with one another, so that their best energies should be called forth, so that each should feel himself responsible for the guidance of his own life, and exert his manhood to the utmost. But why, it might be asked, on these conditions, just these and no others? Why should the State ensure protection of person and property? The time was when the strong man armed kept his goods, and incidentally his neighbour's goods too if he could get hold of them. Why should the State intervene to do for a man that which his ancestor did for himself? Why should a man who has been soundly beaten in physical fight go to a public authority for redress? How much more manly to fight his own battle! Was it not a kind of pauperization to make men secure in person and property through no efforts of their own, by the agency of a state machinery operating over their heads? Would not a really consistent individualism abolish this machinery? "But," the advocate of _laissez-faire_ may reply, "the use of force is criminal, and the State must suppress crime." So men held in the nineteenth century. But there was an earlier time when they did not take this view, but left it to individuals and their kinsfolk to revenge their own injuries by their own might. Was not this a time of more unrestricted individual liberty? Yet the nineteenth century regarded it, and justly, as an age of barbarism. What, we may ask in our turn, is the essence of crime? May we not say that any intentional injury to another may be legitimately punished by a public authority, and may we not say that to impose twelve hours' daily labour on a child was to inflict a greater injury than the theft of a purse for which a century ago a man might be hanged? On what principle, then, is the line drawn, so as to specify certain injuries which the State may prohibit and to mark off others which it must leave untouched? Well, it may be said, _volenti non fit injuria_. No wrong is done to a man by a bargain to which he is a willing party. That may be, though there are doubtful cases. But in the field that has been in question the contention is that one party is not willing. The bargain is a forced bargain. The weaker man consents as one slipping over a precipice might consent to give all his fortune to one who will throw him a rope on no other terms. This is not true consent.

True consent is free consent, and full freedom of consent implies equality on the part of both parties to the bargain. Just as government first secured the elements of freedom for all when it prevented the physically stronger man from slaying, beating, despoiling his neighbours, so it secures a larger measure of freedom for all by every restriction which it imposes with a view to preventing one man from making use of any of his advantages to the disadvantage of others.

There emerges a distinction between unsocial and social freedom.

Unsocial freedom is the right of a man to use his powers without regard to the wishes or interests of any one but himself. Such freedom is theoretically possible for an individual. It is ant.i.thetic to all public control. It is theoretically impossible for a plurality of individuals living in mutual contact. Socially it is a contradiction, unless the desires of all men were automatically attuned to social ends. Social freedom, then, for any epoch short of the millennium rests on restraint.

It is a freedom that can be enjoyed by all the members of a community, and it is the freedom to choose among those lines of activity which do not involve injury to others. As experience of the social effects of action ripens, and as the social conscience is awakened, the conception of injury is widened and insight into its causes is deepened. The area of restraint is therefore increased. But, inasmuch as injury inflicted is itself crippling to the sufferer, as it lowers his health, confines his life, cramps his powers, so the prevention of such injury sets him free. The restraint of the aggressor is the freedom of the sufferer, and only by restraint on the actions by which men injure one another do they as a whole community gain freedom in all courses of conduct that can be pursued without ultimate social disharmony.

It is, therefore, a very shallow wit that taunts contemporary Liberalism with inconsistency in opposing economic protection while it supports protective legislation for the manual labourer. The two things have nothing in common but that they are restraints intended to operate in the interests of somebody. The one is a restraint which, in the Liberal view, would operate in favour of certain industries and interests to the prejudice of others, and, on the whole, in favour of those who are already more fortunately placed and against the poorer cla.s.ses. The other is a restraint conceived in the interest primarily of the poorer cla.s.ses with the object of securing to them a more effective freedom and a nearer approach to equality of conditions in industrial relations.

There is point in the argument only for those who conceive liberty as opposed to restraint as such. For those who understand that all social liberty rests upon restraint, that restraint of one man in one respect is the condition of the freedom of other men in that respect, the taunt has no meaning whatever. The liberty which is good is not the liberty of one gained at the expense of others, but the liberty which can be enjoyed by all who dwell together, and this liberty depends on and is measured by the completeness with which by law, custom, or their own feelings they are restrained from mutual injury.

Individualism, as ordinarily understood, not only takes the policeman and the law court for granted. It also takes the rights of property for granted. But what is meant by the rights of property? In ordinary use the phrase means just that system to which long usage has accustomed us.

This is a system under which a man is free to acquire by any method of production or exchange within the limits of the law whatever he can of land, consumable goods, or capital; to dispose of it at his own will and pleasure for his own purposes, to destroy it if he likes, to give it away or sell it as it suits him, and at death to bequeath it to whomsoever he will. The State, it is admitted, can take a part of a man's property by taxation. For the State is a necessity, and men must pay a price for security; but in all taxation the State on this view is taking something from a man which is "his," and in so doing is justified only by necessity. It has no "right" to deprive the individual of anything that is his in order to promote objects of its own which are not necessary to the common order. To do so is to infringe individual rights and make a man contribute by force to objects which he may view with indifference or even with dislike. "Socialistic" taxation is an infringement of individual freedom, the freedom to hold one's own and do as one will with one's own. Such seems to be the ordinary view.

But a consistent theory of liberty could not rest wholly satisfied with the actual system under which property is held. The first point of attack, already pressed by the disciples of Cobden, was the barrier to free exchange in the matter of land. It was not and still is not easy for the landless to acquire land, and in the name of free contract Cobden and his disciples pressed for cheap and unimpeded transfer. But a more searching criticism was possible. Land is limited in amount, certain kinds of land very narrowly limited. Where there is limitation of supply monopoly is always possible, and against monopoly the principles of free compet.i.tion declared war. To Cobden himself, free trade in land was the pendant to free trade in goods. But the attack on the land monopoly could be carried much further, and might lead the individualist who was in earnest about his principles to march a certain distance on parallel lines with the Socialist enemy. This has, in fact, occurred in the school of Henry George. This school holds by compet.i.tion, but by compet.i.tion only on the basis of a genuine freedom and equality for all individuals. To secure this basis, it would purge the social system of all elements of monopoly, of which the private owners.h.i.+p of land is in its view the most important. This object, it maintains, can be secured only through the absorption by the State of all elements of monopoly value. Now, monopoly value accrues whenever anything of worth to men of which the supply is limited falls into private hands. In this case compet.i.tion fails. There is no check upon the owner except the limitations of demand. He can exact a price which bears no necessary relation to the cost of any effort of his own. In addition to normal wages and profits, he can extract from the necessities of others a surplus, to which the name of economic rent is given. He can also hold up his property and refuse to allow others to make use of it until the time when its full value has accrued, thereby increasing the rent which he will ultimately receive at the cost of much loss in the interim to society.

Monopolies in our country fall into three cla.s.ses. There is, first, the monopoly of land. Urban rents, for example, represent not merely the cost of building, nor the cost of building plus the site, as it would be if sites of the kind required were unlimited in amount. They represent the cost of a site where the supply falls short of the demand, that is to say, where there is an element of monopoly. And site value--the element in the actual cost of a house or factory that depends on its position--varies directly with the degree of this monopoly. This value the land nationalizer contends is not created by the owner. It is created by society. In part it is due to the general growth of the country to which the increase of population and the rise of town life is to be attributed. In part it depends on the growth of the particular locality, and in part on the direct expenditure of the ratepayers' money in sanitation and other improvements which make the place one where people can live and industry can thrive. Directly and indirectly, the community creates the site value. The landlord receives it, and, receiving it, can charge any one who wants to live or carry on industry upon the site with rent to the full amount. The land-nationalizer, looking at rights of property purely from the point of view of the individual, denies the justice of this arrangement, and he sees no solution except this--that the monopoly value should pa.s.s back to the community which creates it. Accordingly, he favours the taxation of site value to its full amount. Another element of monopoly arises from industries in which compet.i.tion is inapplicable--the supply of gas and water, for example, a tramway service, and in some conditions a railway service. Here compet.i.tion may be wasteful if not altogether impossible; and here again, on the lines of a strictly consistent individualism, if the industry is allowed to fall into private hands the owners will be able to secure something more than the normal profits of compet.i.tive industry. They will profit by monopoly at the expense of the general consumer, and the remedy is public control or public owners.h.i.+p. The latter is the more complete and efficacious remedy, and it is also the remedy of munic.i.p.al socialism. Lastly, there may be forms of monopoly created by the State, such as the sale of liquor as restricted by the licensing system. In accordance with compet.i.tive ideas the value so created ought not to pa.s.s into private hands, and if on social grounds the monopoly is maintained, the taxation of licensed premises ought to be so arranged that the monopoly value returns to the community.

Up to this point a thoroughly consistent individualism can work in harmony with socialism, and it is this partial alliance which has, in fact, laid down the lines of later Liberal finance. The great Budget of 1909 had behind it the united forces of Socialist and individualist opinion. It may be added that there is a fourth form of monopoly which would be open to the same double attack, but it is one of which less has been heard in Great Britain than in the United States. It is possible under a compet.i.tive system for rivals to come to an agreement. The more powerful may coerce the weaker, or a number of equals may agree to work together. Thus compet.i.tion may defeat itself, and industry may be marshalled into trusts or other combinations for the private advantage against the public interest. Such combinations, predicted by Karl Marx as the appointed means of dissolving the compet.i.tive system, have been kept at bay in this country by Free Trade. Under Protection they const.i.tute the most urgent problem of the day. Even here the railways, to take one example, are rapidly moving to a system of combination, the economies of which are obvious, while its immediate result is monopoly, and its a.s.sured end is nationalization.

Thus individualism, when it grapples with the facts, is driven no small distance along Socialist lines. Once again we have found that to maintain individual freedom and equality we have to extend the sphere of social control. But to carry through the real principles of Liberalism, to achieve social liberty and living equality of rights, we shall have to probe still deeper. We must not a.s.sume any of the rights of property as axiomatic. We must look at their actual working and consider how they affect the life of society. We shall have to ask whether, if we could abolish all monopoly on articles of limited supply, we should yet have dealt with all the causes that contribute to social injustice and industrial disorder, whether we should have rescued the sweated worker, afforded to every man adequate security for a fair return for an honest day's toil, and prevented the use of economic advantage to procure gain for one man at the expense of another. We should have to ask whether we had the basis of a just delimitation between the rights of the community and those of the individual, and therewith a due appreciation of the appropriate ends of the State and the equitable basis of taxation. These inquiries take us to first principles, and to approach that part of our discussion it is desirable to carry further our sketch of the historic development of Liberalism in thought and action.

FOOTNOTES:

[7] "If I were asked to sum up in a sentence the difference and the connection (between the two schools) I would say that the Manchester men were the disciples of Adam Smith and Bentham, while the Philosophical Radicals followed Bentham and Adam Smith" (F. W. Hirst, _The Manchester School_, Introd., p. xi). Lord Morley, in the concluding chapter of his _Life of Cobden_, points out that it was the view of "policy as a whole"

in connection with the economic movement of society which distinguished the school of Cobden from that of the Benthamites.

[8] Indirectly it has for long limited the hours of men in factories owing to the interdependence of the adult male with the female and child operative.

CHAPTER V

GLADSTONE AND MILL

From the middle of the nineteenth century two great names stand out in the history of British Liberalism--that of Gladstone in the world of action, that of Mill in the world of thought. Differing in much, they agreed in one respect. They had the supreme virtue of keeping their minds fresh and open to new ideas, and both of them in consequence advanced to a deeper interpretation of social life as they grew older.

In 1846 Gladstone ranked as a Conservative, but he parted from his old traditions under the leaders.h.i.+p of Peel on the question of Free Trade, and for many years to come the most notable of his public services lay in the completion of the Cobdenite policy of financial emanc.i.p.ation. In the pursuit of this policy he was brought into collision with the House of Lords, and it was his active intervention in 1859-60 which saved the Commons from a humiliating surrender, and secured its financial supremacy unimpaired until 1909. In the following decade he stood for the extension of the suffrage, and it was his Government which, in 1884, carried the extension of the representative principle to the point at which it rested twenty-seven years later. In economics Gladstone kept upon the whole to the Cobdenite principles which he acquired in middle life. He was not sympathetically disposed to the "New Unionism" and the semi-socialistic ideas that came at the end of the 'eighties, which, in fact, const.i.tuted a powerful cross current to the political work that he had immediately in hand. Yet in relation to Irish land he entered upon a new departure which threw over freedom of contract in a leading case where the two parties were on glaringly unequal terms. No abstract thinker, he had a pa.s.sion for justice in the concrete which was capable of carrying him far. He knew tyranny when he saw it, and upon it he waged unremitting and many-sided war.

But his most original work was done in the sphere of imperial relations.

The maligned Majuba settlement was an act of justice which came too late to effect a permanent undoing of mischief. All the greater was the courage of the statesman who could throw himself at that time upon the inherent force of national liberty and international fair dealing. In the case of Ireland Gladstone again relied on the same principles, but another force was necessary to carry the day, a force which no man can command, the force of time. In international dealings generally Gladstone was a pioneer. His principle was not precisely that of Cobden.

He was not a non-interventionist. He took action on behalf of Greece, and would have done so on behalf of the Armenians, to save the national honour and prevent a monstrous wrong. The Gladstonian principle may be defined by ant.i.thesis to that of Machiavelli, and to that of Bismarck, and to the practice of every Foreign Office. As that practice proceeds on the principle that reasons of State justify everything, so Gladstone proceeded on the principle that reasons of State justify nothing that is not justified already by the human conscience. The statesman is for him a man charged with maintaining not only the material interests but the honour of his country. He is a citizen of the world in that he represents his nation, which is a member of the community of the world.

He has to recognize rights and duties, as every representative of every other human organization has to recognize rights and duties. There is no line drawn beyond which human obligations cease. There is no gulf across which the voice of human suffering cannot be heard, beyond which ma.s.sacre and torture cease to be execrable. Simply as a patriot, again, a man should recognize that a nation may become great not merely by painting the map red, or extending her commerce beyond all precedent, but also as the champion of justice, the succourer of the oppressed, the established home of freedom. From the denunciation of the Opium War, from the exposure of the Neapolitan prisons, to his last appearance on the morrow of the Constantinople ma.s.sacre this was the message which Gladstone sought to convey. He was before his time. He was not always able to maintain his principle in his own Cabinet, and on his retirement the world appeared to relapse definitely into the older ways. His own party gave itself up in large measure to opposite views. On the other hand, careful and unprejudiced criticism will recognize that the chief opponent of his old age, Lord Salisbury, had imbibed something of his spirit, and under its influence did much to save the country from the excesses of Imperialism, while his follower, Sir Henry Campbell-Bannerman, used the brief term of his power to reverse the policy of racial domination in South Africa and to prove the value of the old Gladstonian trust in the recuperative force of political freedom. It may be added that, if cynicism has since appeared to hold the field in international politics, it is the cynicism of terror rather than the cynicism of ambition. The Scare has superseded the Vision as the moving force in our external relations, and there are now signs that the Scare in turn has spent its force and is making room at last for Sense.

In other respects, Gladstone was a moral rather than an intellectual force. He raised the whole level of public life. By habitually calling upon what was best in men, he deepened the sense of public responsibility and paved the way, half unconsciously, for the fuller exercise of the social conscience. Mill was also a moral force, and the most persistent influence of his books is more an effect of character than of intellect. But, in place of Gladstone's driving power and practical capacity, Mill had the qualities of a life-long learner, and in his single person he spans the interval between the old and the new Liberalism. Brought up on the pure milk of the Benthamite word, he never definitely abandoned the first principles of his father. But he was perpetually bringing them into contact with fresh experience and new trains of thought, considering how they worked, and how they ought to be modified in order to maintain what was really sound and valuable in their content. Hence, Mill is the easiest person in the world to convict of inconsistency, incompleteness, and lack of rounded system. Hence, also, his work will survive the death of many consistent, complete, and perfectly rounded systems.

As a utilitarian, Mill cannot appeal to any rights of the individual that can be set in opposition to the public welfare. His method is to show that the permanent welfare of the public is bound up with the rights of the individual. Of course, there are occasions on which the immediate expediency of the public would be met by ignoring personal rights. But if the rule of expediency were followed there would be neither right nor law at all. There would be no fixed rules in social life, and nothing to which men could trust in guiding their conduct. For the utilitarian, then, the question of right resolves itself into the question: What claim is it, in general and as a matter of principle, advisable for society to recognize? What in any given relation are the permanent conditions of social health? In regard to liberty Mill's reply turns on the moral or spiritual forces which determine the life of society. First, particularly as regards freedom of thought and discussion, society needs light. Truth has a social value, and we are never to suppose that we are in the possession of complete and final truth. But truth is only to be sought by experience in the world of thought, and of action as well. In the process of experimentation there are endless opportunities of error, and the free search for truth therefore involves friction and waste. The promulgation of error will do harm, a harm that might be averted if error were suppressed. But suppression by any other means than those of rational suasion is one of those remedies which cure the disease by killing the patient. It paralyzes the free search for truth. Not only so, but there is an element of positive value in honest error which places it above mechanically accepted truth. So far as it is honest it springs from the spontaneous operation of the mind on the basis of some partial and incomplete experience. It is, so far as it goes, an interpretation of experience, though a faulty one, whereas the belief imposed by authority is no interpretation of experience at all. It involves no personal effort. Its blind acceptance seals the resignation of the will and the intellect to effacement and stultification.