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importation of plain goods by 121 per cent in quantity and 59。5 per

cent in value; while that of England and India combined has

decreased 13。75 per cent in quantity and 8 per cent in value。  Lord

Charles Beresford; from whose 〃Break…up of China〃 these figures are

taken; states that English yarn has receded and Indian yarn advanced

to the front。  In 1897; 140;000 piculs of Indian yarn were imported;

18;000 of Japanese; 4500 of Shanghai…manufactured; and 700 of

English。



Japan; who but yesterday emerged from the mediaeval rule of the

Shogunate and seized in one fell swoop the scientific knowledge and

culture of the Occident; is already today showing what wisdom she

has acquired in the production of surplus value; and is preparing

herself that she may tomorrow play the part to Asia that England did

to Europe one hundred years ago。  That the difference in the world's

affairs wrought by those one hundred years will prevent her

succeeding is manifest; but it is equally manifest that they cannot

prevent her playing a leading part in the industrial drama which has

commenced on the Eastern stage。  Her imports into the port of

Newchang in 1891 amounted to but 22;000 taels; but in 1897 they had

increased to 280;000 taels。  In manufactured goods; from matches;

watches; and clocks to the rolling stock of railways; she has

already given stiff shocks to her competitors in the Asiatic

markets; and this while she is virtually yet in the equipment stage

of production。  Erelong she; too; will be furnishing her share to

the growing mass of the world's capital。



As regards Great Britain; the giant trader who has so long

overshadowed Asiatic commerce; Lord Charles Beresford says:  〃But

competition is telling adversely; the energy of the British merchant

is being equalled by other nationals。 。 。 The competition of the

Chinese and the introduction of steam into the country are also

combining to produce changed conditions in China。〃  But far more

ominous is the plaintive note he sounds when he says:  〃New

industries must be opened up; and I would especially direct the

attention of the Chambers of Commerce (British) to 。 。 。 the fact

that the more the native competes with the British manufacturer in

certain classes of trade; the more machinery he will need; and the

orders for such machinery will come to this country if our machinery

manufacturers are enterprising enough。〃



The Orient is beginning to show what an important factor it will

become; under Western supervision; in the creation of surplus value。

Even before the barriers which restrain Western capital are removed;

the East will be in a fair way toward being exploited。  An analysis

of Lord Beresford's message to the Chambers of Commerce discloses;

first; that the East is beginning to manufacture for itself; and;

second; that there is a promise of keen competition in the West for

the privilege of selling the required machinery。  The inexorable

query arises:  WHAT IS THE WEST TO DO WHEN IT HAS FURNISHED THIS

MACHINERY?  And when not only the East; but all the now undeveloped

countries; confront; with surplus products in their hands; the old

industrial nations; capitalistic production will have attained its

maximum development。



But before that time must intervene a period which bids one pause

for breath。  A new romance; like unto none in all the past; the

economic romance; will be born。  For the dazzling prize of world…

empire will the nations of the earth go up in harness。  Powers will

rise and fall; and mighty coalitions shape and dissolve in the swift

whirl of events。  Vassal nations and subject territories will be

bandied back and forth like so many articles of trade。  And with the

inevitable displacement of economic centres; it is fair to presume

that populations will shift to and fro; as they once did from the

South to the North of England on the rise of the factory towns; or

from the Old World to the New。  Colossal enterprises will be

projected and carried through; and combinations of capital and

federations of labor be effected on a cyclopean scale。

Concentration and organization will be perfected in ways hitherto

undreamed。  The nation which would keep its head above the tide must

accurately adjust supply to demand; and eliminate waste to the last

least particle。  Standards of living will most likely descend for

millions of people。  With the increase of capital; the competition

for safe investments; and the consequent fall of the interest rate;

the principal which today earns a comfortable income would not then

support a bare existence。  Saving toward old age would cease among

the working classes。  And as the merchant cities of Italy crashed

when trade slipped from their hands on the discovery of the new

route to the Indies by way of the Cape of Good Hope; so will there

come times of trembling for such nations as have failed to grasp the

prize of world…empire。  In that given direction they will have

attained their maximum development; before the whole world; in the

same direction; has attained its。  There will no longer be room for

them。  But if they can survive the shock of being flung out of the

world's industrial orbit; a change in direction may then be easily

effected。  That the decadent and barbarous peoples will be crushed

is a fair presumption; likewise that the stronger breeds will

survive; entering upon the transition stage to which all the world

must ultimately come。



This change of direction must be either toward industrial

oligarchies or socialism。  Either the functions of private

corporations will increase till they absorb the central government;

or the functions of government will increase till it absorbs the

corporations。  Much may be said on the chance of the oligarchy。

Should an old manufacturing nation lose its foreign trade; it is

safe to predict that a strong effort would be made to build a

socialistic government; but it does not follow that this effort

would be successful。  With the moneyed class controlling the State

and its revenues and all the means of subsistence; and guarding its

own interests with jealous care; it is not at all impossible that a

strong curb could be put upon the masses till the crisis were past。

It has been done before。  There is no reason why it should not be

done again。  At the close of the last century; such a movement was

crushed by its own folly and immaturity。  In 1871 the soldiers of

the economic rulers stamped out; root and branch; a whole generation

of militant socialists。



Once the crisis were past; the ruling class; still holding the curb

in order to make itself more secure; would proceed to readjust

things and to balance consumption with production。  Having a

monopoly of the safe investments; the great masses of unremunerative

capital would be directed; not to the production of more surplus

value; but to the making of permanent improvements; which would give

employment to the people; and make them content with the new order

of things。  Highways; parks; public buildings; monuments; could be

builded; nor would it be out of place to give better factories and

homes to the workers。  Such in itself would be socialistic; save

that it would be done by the oligarchs; a class apart。  With the

interest rate down to zero; and no field for the investment of

sporadic capital; savings among the people would utterly cease; and

old…age pensions be granted as a matter of course。  It is also a

logical necessity of such a system that; when the population began

to press against the means of subsistence; (expansion being

impossible); the birth rate of the lower classes would be lessened。

Whether by their own initiative; or by the interference of the

rulers; it would have to be done; and it would be done。  In other

words; the oligarchy would mean the capitalization of labor and the

enslavement of the whole population。  But it would be a fairer;

juster form of slavery than any the world has yet seen。  The per

capita wage and consumption would be increased; and; with a

stringent control of the birth rate; there is no reason why such a

country should not be so ruled through many generations。



On the other hand; as the capitalistic exploitation of the planet

approaches its maximum; and countries are crowded out of the field

of foreign exchanges; there is a large likelihood that their change

in direction will be toward socialism。  Were the theory of

collective ownership and operation then to arise for the first time;

such a movement would stand small chance of success。  But such is

not the case。  The doctrine of socialism has flourished and grown

throughout the nineteenth century; its tenets have been preached

wherever the interests of labor and capital have clashed; and it has

received exemplification time and again by the State's assumption of

functions which had always belonged solely to the individual。



When capitalistic production has a

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