, and liberal
manufacturers
like John Bright & Co.
Marx - Capital-Volume-I
For the expropriation of the agricultural population creates, directly, none but the greatest landed proprietors.
As far, however, as concerns the genesis of the farmer, we can, so to say, put our hand on it, because it is a slow process evolving through many centuries.
The serfs, as well as the free small proprietors, held land under very different tenures, and were therefore emancipated under very different economic conditions.
In England the first form of the farmer is the bailiff, himself a serf.
His position is similar to that of the old Roman villicus, only in a more limited sphere of action.
During the second half of the 14th century he is replaced by a farmer, whom the landlord provided with seed, cattle and implements.
His condition is not very different from that of the peasant.
Only he exploits more wage labour.
Soon he becomes a metayer, a half-farmer.
He advances one part of the agricultural stock, the landlord the other.
The two divide the total product in proportions determined by contract.
This form quickly disappears in England, to give the place to the farmer proper, who makes his own capital breed by employing wage labourers, and pays a part of the surplus-product, in money or in kind, to the landlord as rent.
So long, during the 15th century, as the independent peasant and the farm-labourer working for himself as well as for wages, enriched themselves by their own labour, the circumstances of the farmer, and his field of production, were equally mediocre.
The agricultural revolution which commenced in the last third of the 15th century, and continued during almost the whole of the 16th (excepting, however, its last decade), enriched him just as speedily as it impoverished the mass of the agricultural people.
1
The usurpation of the common lands allowed him to augment greatly his stock of cattle, almost without cost, whilst they yielded him a richer supply of manure for the tillage of the soil. To this was added in the 16th century a very important element. At that time the contracts for farms ran for a long time, often for 99 years. The progressive fall in the value of the precious metals, and therefore of money, brought the farmers golden fruit. Apart from all the other circumstances discussed above, it lowered wages. A portion of the latter was now added to the profits of the farm. The continuous rise in the price of corn, wool, meat, in a word of all agricultural produce, swelled the money capital of the farm without any action on his part, whilst the rent he paid (being calculated on the old value of money) diminished in reality. 2 Thus they grew rich at the expense both of their labourers and their landlords. No wonder, therefore, that England, at the end of the 16th century, had a class of capitalist farmers, rich, considering the circumstances of the time. 3
1 Harrison in his --Description of England,? says --although peradventure foure pounds of old rent be improved to fortie, toward the end of his term, if he have not six or seven yeares rent lieng by him, fiftie or a hundred pounds, yet will the farmer thinke his gaines verie small. ?
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2 On the influence of the depreciation of money in the 16th century, on the different classes of society, see --A Compendium of Briefe Examination of Certayne Ordinary Complaints of Divers of our Countrymen in these our Days,? by W. S. Gentleman (London 1581). The dialogue form of this work led people for a long time to ascribe it to Shakespeare, and even in 1751, it was published under his name. Its author is William Stafford. In one place the knight reasons as follows: Knight: You, my neighbor, the husbandman, you Maister Mercer, and you Goodman Cooper, with other artificers, may save yourselves metely well. For as much as all things are dearer than they were, so much do you arise in the pryce of your wares and occupations that ye sell agayne. But we have nothing to sell whereby we might advance ye price there of, to countervaile those things that we must buy agayne. ? In another place, the knight asks the doctor: I pray you, what be those sorts that ye meane. And first, of those that ye thinke should have no losse thereby? Doctor: I mean all those that live by buying and selling, for as they buy deare, the sell thereafter. Knight: What is the next sort that ye say would win by it? Doctor: Marry, all such as have takings of fearmes in their owne manurance [cultivation] at the old rent, for where they pay after the olde rate they sell after the newe -- that is, they paye for theire lande good cheape, and sell all things growing thereof deare. Knight: What sorte is that which, ye sayde should have greater losse hereby, than these men had profit? Doctor: It is all noblemen, gentlemen, and all other that live either by a stinted rent or stypend, or do not manure [cultivate] the ground, or doe occupy no buying and selling. ?
3 In France, the re? gisseur, steward, collector of dues for the feudal lords during the earlier part of the middle ages, soon became an homme d'affaires, who by extortion, cheating, &c. , swindled himself into a capitalist. These re? gisseurs themselves were sometimes noblemen. E. g. , --C'est li compte que messire Jacques de Thoraine, chevalier chastelain sor Besanc? on rent e? s-seigneur tenant les comptes a` Dijon pour monseigneur le duc et comte de Bourgoigne, des rentes appartenant a` la dite chastellenie, depuis xxve jour de de? cembre MCCCLIX jusqu'au xxviiie jour de de? cembre MCCCLX. ? [This is the account given by M. Jacques de Thoraisse, knight, and Lord of a manor near Besanc? on, to the lord who administers the accounts at Dijon for his highness the Duke and Count of Burgundy, of the rents appurtenant to the above-mentioned manor, from the 25th day of December 1359 to the 28th day of December 1360] (Alexis Monteil: --Traite? de Mate? riaux Manuscrits etc. ,? pp. 234, 235. ) Already it is evident here how in all spheres of social life the lion's share falls to the middleman. In the economic domain, e. g. , financiers, stock-exchange speculators, merchants, shopkeepers skim the cream; in civil matters, the lawyer fleeces his clients; in politics the representative is of more importance than the voters, the minister than the sovereign; in religion, God is pushed into the background by the --Mediator,? and the latter again is shoved back by the priests, the inevitable middlemen between the good shepherd and his sheep. In France, as in England, the great feudal territories were divided into innumerable small homesteads, but under conditions incomparably more favorable for the people. During the 14th century arose the farms or terriers. Their number grew constantly, far beyond 100,000. They paid rents varying from 1/12 to 1/5 of the product in money or in kind. These farms were fiefs, sub-fiefs, &c. , according the value and extent of the domains, many of them only containing a few acres. But these farmers had rights of jurisdiction in some degree over the dwellers on the soil; there were four grades. The oppression of the agricultural population under all these petty tyrants will be understood. Monteil says that there were once in France 160,000 judges, where today, 4,000 tribunals, including justices of the peace, suffice.
? ? Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the
Home-Market for Industrial Capital
The expropriation and expulsion of the agricultural population, intermittent but renewed again and again, supplied, as we saw, the town industries with a mass of proletarians entirely connected with the corporate guilds and unfettered by them; a fortunate circumstance that makes old A. Anderson (not to be confounded with James Anderson), in his --History of Commerce,? believe in the direct intervention of Providence. We must still pause a moment on this element of primitive accumulation. The thinning-out of the independent, self-supporting peasants not only brought about the crowding together of the industrial proletariat, in the way that Geoffrey Saint Hilaire explained the condensation of cosmical matter at one place, by its rarefaction at another. 1 In spite of the smaller number of its cultivators, the soil brought forth as much or more produce, after as before, because the revolution in the conditions of landed property was accompanied by improved methods of culture, greater co-operation, concentration of the means of production, &c. , and because not only were the agricultural wage labourers put on the strain more intensely2, but the field of production on which they worked for themselves became more and more contracted. With the setting free of a part of the agricultural population, therefore, their former means of nourishment were also set free. They were now transformed into material elements of variable capital. The peasant, expropriated and cast adrift, must buy their value in the form of wages, from his new master, the industrial capitalist. That which holds good of the means of subsistence holds with the raw materials of industry dependent upon home agriculture. They were transformed into an element of constant capital. Suppose, e. g. , a part of the Westphalian peasants, who, at the time of Frederick II, all span flax, forcibly expropriated and hunted from the soil; and the other part that remained, turned into day labourers of large farmers. At the same time arise large establishments for flax-spinning and weaving, in which the men --set free? now work for wages. The flax looks exactly as before. Not a fibre of it is changed, but a new social soul has popped into its body. It forms now a part of the constant capital of the master manufacturer. Formerly divided among a number of small producers, who cultivated it themselves and with their families spun it in retail fashion, it is now concentrated in the hand of one capitalist, who sets others to spin and weave it for him. The extra labour expended in flax-spinning realised itself formerly in extra income to numerous peasant families, or maybe, in Frederick II's time, in taxes pour le roi de Prusse. It realises itself now in profit for a few capitalists. The spindles and looms, formerly scattered over the face of the country, are now crowded together in a few great labour-barracks, together with the labourers and the raw material. And spindles, looms, raw material, are now transformed from means of independent existence for the spinners and weavers, into means for commanding them and sucking out of them unpaid labour. 3 One does not perceive, when looking at the large manufactories and the large farms, that they have originated from the throwing into one of many small centres of production, and have been built up by the expropriation of many small independent producers. Nevertheless, the popular intuition was not at fault. In the time of Mirabeau, the lion of the Revolution, the great manufactories were still called manufactures reunies, workshops thrown into one, as we speak of field thrown into one. Says Mirabeau:
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--We are only paying attention to the grand manufactories, in which hundreds of men work under a director and which are commonly called manufactures re? unies. Those where a very large number of labourers work, each separately and on his own account, are hardly considered; they are placed at an infinite distance from the others. This is a great error, as the latter alone make a really important object of national prosperity. . . . The large workshop (manufacture re? unie) will enrich prodigiously one or two entrepreneurs, but the labourers will only be journeymen, paid more or less, and will not have any share in the success of the undertaking. In the discrete workshop (manufacture separe? e), on the contrary, no one will become rich, but many labourers will be comfortable; the saving and the industrious will be able to amass a little capital, to put by a little for a birth of a child, for an illness, for themselves or their belongings. The number of saving and industrious labourers will increase, because they will see in good conduct, in activity, a means of essentially bettering their condition, and not of obtaining a small rise in wages that can never be of any importance of the future, and whose sole result is to place men in the position to live a little better, but only from day to day. . . . The large workshops, undertakings of certain private persons who pay labourers from day to day to work for their gain, may be able to put these private individuals at their ease, but they will never be an object worth the attention of governments. Discrete workshops, for the most part combined with cultivation of small holdings, are the only free ones. ? 4 The expropriation and eviction of a part of the agricultural population not only set free for industrial capital, the labourers, their means of subsistence, and material for labour; it also created the home-market.
In fact, the events that transformed the small peasants into wage labourers, and their means of subsistence and of labour into material elements of capital, created, at the same time, a home- market for the latter. Formerly, the peasant family produced the means of subsistence and the raw materials, which they themselves, for the most part, consumed. These raw materials and means of subsistence have now become commodities; the large farmer sells them, he finds his market in manufactures. Yarn, linen, coarse woollen stuffs - things whose raw materials had been within the reach of every peasant family, had been spun and woven by it for its own use - were now transformed into articles of manufacture, to which the country districts at once served for markets. The many scattered customers, whom stray artisans until now had found in the numerous small producers working on their own account, concentrate themselves now into one great market provided for by industrial capital. 5 Thus, hand in hand with the expropriation of the self-supporting peasants, with their separation from their means of production, goes the destruction of rural domestic industry, the process of separation between manufacture and agriculture. And only the destruction of rural domestic industry can give the internal market of a country that extension and consistence which the capitalist mode of production requires. Still the manufacturing period, properly so called, does not succeed in carrying out this transformation radically and completely. It will be remembered that manufacture, properly so called, conquers but partially the domain of national production, and always rests on the handicrafts of the town and the domestic industry of the rural districts as its ultimate basis. If it destroys these in one form, in particular branches, at certain points, it calls them up again elsewhere, because it needs them for the preparation of raw material up to a certain point. It produces, therefore, a new class of small villagers who, while following the cultivation of the soil as an accessory calling, find their chief occupation in industrial labour, the products of which they sell to the manufacturers directly, or through the medium of merchants. This is one, though not the chief, cause of a phenomenon which, at first, puzzles the student of English history. 6 From the last third of the
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15th century he finds continually complaints, only interrupted at certain intervals, about the encroachment of capitalist farming in the country districts, and the progressive destruction of the peasantry. On the other hand, he always finds this peasantry turning up again, although in diminished number, and always under worse conditions. The chief reason is: England is at one time chiefly a cultivator of corn, at another chiefly a breeder of cattle, in alternate periods, and with these the extent, supplies, in machinery, the lasting basis of capitalistic agriculture, expropriates radically the enormous majority of the agricultural population, and completes the separation between agriculture and rural domestic industry, whose roots - spinning and weaving - it tears up. 7 It therefore also, for the first time, conquers for industrial capital the entire home market. 8
1 In his --Notions de Philosophie Naturelle. ? Paris, 1838.
2 A point that Sir James Steuart emphasises.
3 --Je permettrai,? says the capitalist, --que vous ayez l'honneur de me servir, a` condition que vous me donnez le peu qui vous reste pour la peine que je prends de vous commander. ? [I will allow you . . . to have the honour of serving me, on condition that, in return for the pains I take in commanding you, you give me the little that remains to you] (J. J. Rousseau: --Discours sur l'Economie Politique. ? )
4 Mirabeau, l. c. , t. III, pp. 20-109 passim. That Mirabeau considers the separate workshops more economical and productive than the --combined,? and sees in the latter merely artificial exotics under government cultivation, is explained by the position at that time of a great part of the continental manufactures.
5 --Twenty pounds of wool converted unobtrusively into yearly clothing of a labourer's family by its own industry in the intervals of other works -- this makes no show; but bring it to market, send it to the factory, thence to the broker, thence to the dealer, and you will have great commercial operations, and nominal capital engaged to the amount of twenty times its value. . . . The working-class is thus emersed to support a wretched factory population, a parastical shop-keeping class, and a fictitious commercial, monetary, and financial system. ? (David Urquhart, l. c. , p. 120. )
6 Cromwell's time forms an exception. So long as the Republic lasted, the mass of the English people of all grades rose from the degradation into which they had sunk under the Tudors.
7 Tuckett is aware that the modern woollen industry has sprung, with the introduction of machinery, from manufacture proper and from the destruction of rural and domestic industries.
--The plough, the yoke, were ? the invention of gods, and the occupation of heroes'; are the loom, the spindle, the distaff, of less noble parentage. You sever the distaff and the plough, the spindle and the yoke, and you get factories and poor-houses, credit and panics, two hostile nations, agriculture and commercial. ? (David Urquhart, l. c. , p. 122. )
But now comes Carey, and cries out upon England, surely not with unreason, that it is trying to turn every other country into a mere agricultural nation, whose manufacturer is to be England. He pretends that in this way Turkey has been ruined, because --the owners and occupants of land have never been permitted by England to strengthen themselves by the formation of that natural alliance between the plough and the loom, the hammer and the harrow. ? (--The Slave Trade,? p. 125. ) According to him, Urquhart himself is one of the chief agents in the ruin of Turkey, where he had made Free-trade propaganda in the English interest. The best of it is that Carey, a great Russophile by the way, wants to prevent the process of separation by that very system of protection which accelerates it.
8 Philanthropic English economists, like Mill, Rogers, Goldwin Smith, Fawcett, &c.
, and liberal manufacturers like John Bright & Co. , ask the English landed proprietors, as God asked Cain after Abel, Where are our thousands of freeholders gone? But where do you come from, then? From the
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destruction of those freeholders. Why don't you ask further, where are the independent weavers, spinners, and artisans gone?
? ? Chapter 31: The Genesis of the Industrial Capitalist
The genesis of the industrial* capitalist did not proceed in such a gradual way as that of the farmer. Doubtless many small guild-masters, and yet more independent small artisans, or even wage labourers, transformed themselves into small capitalists, and (by gradually extending exploitation of wage labour and corresponding accumulation) into full-blown capitalists. In the infancy of capitalist production, things often happened as in the infancy of medieval towns, where the question, which of the escaped serfs should be master and which servant, was in great part decided by the earlier or later date of their flight. The snail's pace of this method corresponded in no wise with the commercial requirements of the new world market that the great discoveries of the end of the 15th century created. But the middle ages had handed down two distinct forms of capital, which mature in the most different economic social formations, and which before the era of the capitalist mode of production, are considered as capital quand me^me [all the same] - usurer's capital and merchant's capital.
--At present, all the wealth of society goes first into the possession of the capitalist . . . he pays the landowner his rent, the labourer his wages, the tax and tithe gatherer their claims, and keeps a large, indeed the largest, and a continually augmenting share, of the annual produce of labour for himself. The capitalist may now be said to be the first owner of all the wealth of the community, though no law has conferred on him the right to this property. . . this change has been effected by the taking of interest on capital . . . and it is not a little curious that all the law- givers of Europe endeavoured to prevent this by statutes, viz. , statutes against usury. . . . The power of the capitalist over all the wealth of the country is a complete change in the right of property, and by what law, or series of laws, was it effected? ? 2
The author should have remembered that revolutions are not made by laws.
The money capital formed by means of usury and commerce was prevented from turning into industrial capital, in the country by the feudal constitution, in the towns by the guild organisation. 3 These fetters vanished with the dissolution of feudal society, with the expropriation and partial eviction of the country population. The new manufactures were established at sea- ports, or at inland points beyond the control of the old municipalities and their guilds. Hence in England an embittered struggle of the corporate towns against these new industrial nurseries.
The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black-skins, signalised the rosy dawn of the era of capitalist production. These idyllic proceedings are the chief momenta of primitive accumulation. On their heels treads the commercial war of the European nations, with the globe for a theatre. It begins with the revolt of the Netherlands from Spain, assumes giant dimensions in England's Anti-Jacobin War, and is still going on in the opium wars against China, &c.
* Industrial here in contradistinction to agricultural. In the --categoric? sense the farmer is an industrial capitalist as much as the manufacturer.
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The different momenta of primitive accumulation distribute themselves now, more or less in chronological order, particularly over Spain, Portugal, Holland, France, and England. In England at the end of the 17th century, they arrive at a systematical combination, embracing the colonies, the national debt, the modern mode of taxation, and the protectionist system. These methods depend in part on brute force, e. g. , the colonial system. But, they all employ the power of the State, the concentrated and organised force of society, to hasten, hot-house fashion, the process of transformation of the feudal mode of production into the capitalist mode, and to shorten the transition. Force is the midwife of every old society pregnant with a new one. It is itself an economic power.
Of the Christian colonial system, W. Howitt, a man who makes a speciality of Christianity, says:
--The barbarities and desperate outrages of the so-called Christian race, throughout every region of the world, and upon every people they have been able to subdue, are not to be paralleled by those of any other race, however fierce, however untaught, and however reckless of mercy and of shame, in any age of the earth. ? 4
The history of the colonial administration of Holland - and Holland was the head capitalistic nation of the 17th century -
--is one of the most extraordinary relations of treachery, bribery, massacre, and meanness? 5
Nothing is more characteristic than their system of stealing men, to get slaves for Java. The men stealers were trained for this purpose. The thief, the interpreter, and the seller, were the chief agents in this trade, native princes the chief sellers. The young people stolen, were thrown into the secret dungeons of Celebes, until they were ready for sending to the slave-ships. An official report says:
--This one town of Macassar, e. g. , is full of secret prisons, one more horrible than the other, crammed with unfortunates, victims of greed and tyranny fettered in chains, forcibly torn from their families. ?
To secure Malacca, the Dutch corrupted the Portuguese governor. He let them into the town in 1641. They hurried at once to his house and assassinated him, to --abstain? from the payment of ? 21,875, the price of his treason. Wherever they set foot, devastation and depopulation followed. Banjuwangi, a province of Java, in 1750 numbered over 80,000 inhabitants, in 1811 only 18,000. Sweet commerce!
The English East India Company, as is well known, obtained, besides the political rule in India, the exclusive monopoly of the tea-trade, as well as of the Chinese trade in general, and of the transport of goods to and from Europe. But the coasting trade of India and between the islands, as well as the internal trade of India, were the monopoly of the higher employe? s of the company. The monopolies of salt, opium, betel and other commodities, were inexhaustible mines of wealth. The employe? s themselves fixed the price and plundered at will the unhappy Hindus. The Governor-General took part in this private traffic. His favourites received contracts under conditions whereby they, cleverer than the alchemists, made gold out of nothing. Great fortunes sprang up like mushrooms in a day; primitive accumulation went on without the advance of a shilling. The trial of Warren Hastings swarms with such cases. Here is an instance. A contract for opium was given to a certain Sullivan at the moment of his departure on an official mission to a part of India far removed from the opium district. Sullivan sold his contract to one Binn for ? 40,000; Binn sold it the same day for ? 60,000, and the ultimate purchaser who carried out the contract declared that after all he realised an enormous gain. According to one of the lists laid before Parliament, the Company and its employe? s from 1757-1766 got ? 6,000,000 from the Indians as gifts. Between 1769 and 1770, the English manufactured a famine by buying up all the rice and refusing to sell it again, except at fabulous prices. 6
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The treatment of the aborigines was, naturally, most frightful in plantation-colonies destined for export trade only, such as the West Indies, and in rich and well-populated countries, such as Mexico and India, that were given over to plunder. But even in the colonies properly so called, the Christian character of primitive accumulation did not belie itself. Those sober virtuosi of Protestantism, the Puritans of New England, in 1703, by decrees of their assembly set a premium of ? 40 on every Indian scalp and every captured red-skin: in 1720 a premium of ? 100 on every scalp; in 1744, after Massachusetts-Bay had proclaimed a certain tribe as rebels, the following prices: for a male scalp of 12 years and upwards ? 100 (new currency), for a male prisoner ? 105, for women and children prisoners ? 50, for scalps of women and children ? 50. Some decades later, the colonial system took its revenge on the descendants of the pious pilgrim fathers, who had grown seditious in the meantime. At English instigation and for English pay they were tomahawked by red-skins. The British Parliament proclaimed bloodhounds and scalping as --means that God and Nature had given into its hand. ?
The colonial system ripened, like a hot-house, trade and navigation. The --societies Monopolia? of Luther were powerful levers for concentration of capital. The colonies secured a market for the budding manufactures, and, through the monopoly of the market, an increased accumulation. The treasures captured outside Europe by undisguised looting, enslavement, and murder, floated back to the mother-country and were there turned into capital. Holland, which first fully developed the colonial system, in 1648 stood already in the acme of its commercial greatness. It was
--in almost exclusive possession of the East Indian trade and the commerce between the south-east and north-west of Europe. Its fisheries, marine, manufactures, surpassed those of any other country. The total capital of the Republic was probably more important than that of all the rest of Europe put together. ? Gu? lich forgets to add that by 1648, the people of Holland were more over-worked, poorer and more brutally oppressed than those of all the rest of Europe put together.
Today industrial supremacy implies commercial supremacy. In the period of manufacture properly so called, it is, on the other hand, the commercial supremacy that gives industrial predominance. Hence the preponderant ro^le that the colonial system plays at that time. It was --the strange God? who perched himself on the altar cheek by jowl with the old Gods of Europe, and one fine day with a shove and a kick chucked them all of a heap. It proclaimed surplus value making as the sole end and aim of humanity.
The system of public credit, i. e. , of national debts, whose origin we discover in Genoa and Venice as early as the Middle Ages, took possession of Europe generally during the manufacturing period. The colonial system with its maritime trade and commercial wars served as a forcing- house for it. Thus it first took root in Holland. National debts, i. e. , the alienation of the state - whether despotic, constitutional or republican - marked with its stamp the capitalistic era. The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. 7 Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.
The public debt becomes one of the most powerful levers of primitive accumulation. As with the stroke of an enchanter's wand, it endows barren money with the power of breeding and thus turns it into capital, without the necessity of its exposing itself to the troubles and risks inseparable from its employment in industry or even in usury. The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would. But further, apart from the class of lazy annuitants
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thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation - as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven - the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy.
At their birth the great banks, decorated with national titles, were only associations of private speculators, who placed themselves by the side of governments, and, thanks to the privileges they received, were in a position to advance money to the State. Hence the accumulation of the national debt has no more infallible measure than the successive rise in the stock of these banks, whose full development dates from the founding of the Bank of England in 1694. The Bank of England began with lending its money to the Government at 8%; at the same time it was empowered by Parliament to coin money out of the same capital, by lending it again to the public in the form of banknotes. It was allowed to use these notes for discounting bills, making advances on commodities, and for buying the precious metals. It was not long ere this credit-money, made by the bank itself, became. the coin in which the Bank of England made its loans to the State, and paid, on account of the State, the interest on the public debt. It was not enough that the bank gave with one hand and took back more with the other; it remained, even whilst receiving, the eternal creditor of the nation down to the last shilling advanced. Gradually it became inevitably the receptacle of the metallic hoard of the country, and the centre of gravity of all commercial credit. What effect was produced on their contemporaries by the sudden uprising of this brood of bankocrats, financiers, rentiers, brokers, stock-jobbers, &c. , is proved by the writings of that time, e. g. , by Bolingbroke's. 8
With the national debt arose an international credit system, which often conceals one of the sources of primitive accumulation in this or that people. Thus the villainies of the Venetian thieving system formed one of the secret bases of the capital-wealth of Holland to whom Venice in her decadence lent large sums of money. So also was it with Holland and England. By the beginning of the 18th century the Dutch manufactures were far outstripped. Holland had ceased to be the nation preponderant in commerce and industry. One of its main lines of business, therefore, from 1701-1776, is the lending out of enormous amounts of capital, especially to its great rival England. The same thing is going on today between England and the United States. A great deal of capital, which appears today in the United States without any certificate of birth, was yesterday, in England, the capitalised blood of children.
As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c. , the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression. Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his --Maxims? extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.
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The great part that the public debt, and the fiscal system corresponding with it, has played in the capitalisation of wealth and the expropriation of the masses, has led many writers, like Cobbett, Doubleday and others, to seek in this, incorrectly, the fundamental cause of the misery of the modern peoples.
The system of protection was an artificial means of manufacturing manufacturers, of expropriating independent labourers, of capitalising the national means of production and subsistence, of forcibly abbreviating the transition from the medieval to the modern mode of production. The European states tore one another to pieces about the patent of this invention, and, once entered into the service of the surplus value makers, did not merely lay under contribution in the pursuit of this purpose their own people, indirectly through protective duties, directly through export premiums. They also forcibly rooted out, in their dependent countries, all industry, as, e. g. , England did. with the Irish woollen manufacture. On the continent of Europe, after Colbert's example, the process was much simplified. The primitive industrial capital, here, came in part directly out of the state treasury. --Why,? cries Mirabeau, --why go so far to seek the cause of the manufacturing glory of Saxony before the war? 180,000,000 of debts contracted by the sovereigns! ? 9
Colonial system, public debts, heavy taxes, protection, commercial wars, &c. , these children of the true manufacturing period, increase gigantically during the infancy of Modem Industry. The birth of the latter is heralded by a great slaughter of the innocents. Like the royal navy, the factories were recruited by means of the press-gang. Blase? as Sir F. M. Eden is as to the horrors of the expropriation of the agricultural population from the soil, from the last third of the 15th century to his own time; with all the self-satisfaction with which he rejoices in this process, --essential? for establishing capitalistic agriculture and --the due proportion between arable and pasture land? - he does not show, however, the same economic insight in respect to the necessity of child-stealing and child-slavery for the transformation of manufacturing exploitation into factory exploitation, and the establishment of the --true relation? between capital and labour- power. He says:
--It may, perhaps, be worthy the attention of the public to consider, whether any manufacture, which, in order to be carried on successfully, requires that cottages and workhouses should be ransacked for poor children; that they should be employed by turns during the greater part of the night and robbed of that rest which, though indispensable to all, is most required by the young; and that numbers of both sexes, of different ages and dispositions, should be collected together in such a manner that the contagion of example cannot but lead to profligacy and debauchery; will add to the sum of individual or national felicity? ? 10
--In the counties of Derbyshire, Nottinghamshire, and more particularly in Lancashire,? says Fielden, --the newly-invented machinery was used in large factories built on the sides of streams capable of turning the water-wheel.
The usurpation of the common lands allowed him to augment greatly his stock of cattle, almost without cost, whilst they yielded him a richer supply of manure for the tillage of the soil. To this was added in the 16th century a very important element. At that time the contracts for farms ran for a long time, often for 99 years. The progressive fall in the value of the precious metals, and therefore of money, brought the farmers golden fruit. Apart from all the other circumstances discussed above, it lowered wages. A portion of the latter was now added to the profits of the farm. The continuous rise in the price of corn, wool, meat, in a word of all agricultural produce, swelled the money capital of the farm without any action on his part, whilst the rent he paid (being calculated on the old value of money) diminished in reality. 2 Thus they grew rich at the expense both of their labourers and their landlords. No wonder, therefore, that England, at the end of the 16th century, had a class of capitalist farmers, rich, considering the circumstances of the time. 3
1 Harrison in his --Description of England,? says --although peradventure foure pounds of old rent be improved to fortie, toward the end of his term, if he have not six or seven yeares rent lieng by him, fiftie or a hundred pounds, yet will the farmer thinke his gaines verie small. ?
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2 On the influence of the depreciation of money in the 16th century, on the different classes of society, see --A Compendium of Briefe Examination of Certayne Ordinary Complaints of Divers of our Countrymen in these our Days,? by W. S. Gentleman (London 1581). The dialogue form of this work led people for a long time to ascribe it to Shakespeare, and even in 1751, it was published under his name. Its author is William Stafford. In one place the knight reasons as follows: Knight: You, my neighbor, the husbandman, you Maister Mercer, and you Goodman Cooper, with other artificers, may save yourselves metely well. For as much as all things are dearer than they were, so much do you arise in the pryce of your wares and occupations that ye sell agayne. But we have nothing to sell whereby we might advance ye price there of, to countervaile those things that we must buy agayne. ? In another place, the knight asks the doctor: I pray you, what be those sorts that ye meane. And first, of those that ye thinke should have no losse thereby? Doctor: I mean all those that live by buying and selling, for as they buy deare, the sell thereafter. Knight: What is the next sort that ye say would win by it? Doctor: Marry, all such as have takings of fearmes in their owne manurance [cultivation] at the old rent, for where they pay after the olde rate they sell after the newe -- that is, they paye for theire lande good cheape, and sell all things growing thereof deare. Knight: What sorte is that which, ye sayde should have greater losse hereby, than these men had profit? Doctor: It is all noblemen, gentlemen, and all other that live either by a stinted rent or stypend, or do not manure [cultivate] the ground, or doe occupy no buying and selling. ?
3 In France, the re? gisseur, steward, collector of dues for the feudal lords during the earlier part of the middle ages, soon became an homme d'affaires, who by extortion, cheating, &c. , swindled himself into a capitalist. These re? gisseurs themselves were sometimes noblemen. E. g. , --C'est li compte que messire Jacques de Thoraine, chevalier chastelain sor Besanc? on rent e? s-seigneur tenant les comptes a` Dijon pour monseigneur le duc et comte de Bourgoigne, des rentes appartenant a` la dite chastellenie, depuis xxve jour de de? cembre MCCCLIX jusqu'au xxviiie jour de de? cembre MCCCLX. ? [This is the account given by M. Jacques de Thoraisse, knight, and Lord of a manor near Besanc? on, to the lord who administers the accounts at Dijon for his highness the Duke and Count of Burgundy, of the rents appurtenant to the above-mentioned manor, from the 25th day of December 1359 to the 28th day of December 1360] (Alexis Monteil: --Traite? de Mate? riaux Manuscrits etc. ,? pp. 234, 235. ) Already it is evident here how in all spheres of social life the lion's share falls to the middleman. In the economic domain, e. g. , financiers, stock-exchange speculators, merchants, shopkeepers skim the cream; in civil matters, the lawyer fleeces his clients; in politics the representative is of more importance than the voters, the minister than the sovereign; in religion, God is pushed into the background by the --Mediator,? and the latter again is shoved back by the priests, the inevitable middlemen between the good shepherd and his sheep. In France, as in England, the great feudal territories were divided into innumerable small homesteads, but under conditions incomparably more favorable for the people. During the 14th century arose the farms or terriers. Their number grew constantly, far beyond 100,000. They paid rents varying from 1/12 to 1/5 of the product in money or in kind. These farms were fiefs, sub-fiefs, &c. , according the value and extent of the domains, many of them only containing a few acres. But these farmers had rights of jurisdiction in some degree over the dwellers on the soil; there were four grades. The oppression of the agricultural population under all these petty tyrants will be understood. Monteil says that there were once in France 160,000 judges, where today, 4,000 tribunals, including justices of the peace, suffice.
? ? Chapter 30: Reaction of the Agricultural Revolution on Industry. Creation of the
Home-Market for Industrial Capital
The expropriation and expulsion of the agricultural population, intermittent but renewed again and again, supplied, as we saw, the town industries with a mass of proletarians entirely connected with the corporate guilds and unfettered by them; a fortunate circumstance that makes old A. Anderson (not to be confounded with James Anderson), in his --History of Commerce,? believe in the direct intervention of Providence. We must still pause a moment on this element of primitive accumulation. The thinning-out of the independent, self-supporting peasants not only brought about the crowding together of the industrial proletariat, in the way that Geoffrey Saint Hilaire explained the condensation of cosmical matter at one place, by its rarefaction at another. 1 In spite of the smaller number of its cultivators, the soil brought forth as much or more produce, after as before, because the revolution in the conditions of landed property was accompanied by improved methods of culture, greater co-operation, concentration of the means of production, &c. , and because not only were the agricultural wage labourers put on the strain more intensely2, but the field of production on which they worked for themselves became more and more contracted. With the setting free of a part of the agricultural population, therefore, their former means of nourishment were also set free. They were now transformed into material elements of variable capital. The peasant, expropriated and cast adrift, must buy their value in the form of wages, from his new master, the industrial capitalist. That which holds good of the means of subsistence holds with the raw materials of industry dependent upon home agriculture. They were transformed into an element of constant capital. Suppose, e. g. , a part of the Westphalian peasants, who, at the time of Frederick II, all span flax, forcibly expropriated and hunted from the soil; and the other part that remained, turned into day labourers of large farmers. At the same time arise large establishments for flax-spinning and weaving, in which the men --set free? now work for wages. The flax looks exactly as before. Not a fibre of it is changed, but a new social soul has popped into its body. It forms now a part of the constant capital of the master manufacturer. Formerly divided among a number of small producers, who cultivated it themselves and with their families spun it in retail fashion, it is now concentrated in the hand of one capitalist, who sets others to spin and weave it for him. The extra labour expended in flax-spinning realised itself formerly in extra income to numerous peasant families, or maybe, in Frederick II's time, in taxes pour le roi de Prusse. It realises itself now in profit for a few capitalists. The spindles and looms, formerly scattered over the face of the country, are now crowded together in a few great labour-barracks, together with the labourers and the raw material. And spindles, looms, raw material, are now transformed from means of independent existence for the spinners and weavers, into means for commanding them and sucking out of them unpaid labour. 3 One does not perceive, when looking at the large manufactories and the large farms, that they have originated from the throwing into one of many small centres of production, and have been built up by the expropriation of many small independent producers. Nevertheless, the popular intuition was not at fault. In the time of Mirabeau, the lion of the Revolution, the great manufactories were still called manufactures reunies, workshops thrown into one, as we speak of field thrown into one. Says Mirabeau:
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--We are only paying attention to the grand manufactories, in which hundreds of men work under a director and which are commonly called manufactures re? unies. Those where a very large number of labourers work, each separately and on his own account, are hardly considered; they are placed at an infinite distance from the others. This is a great error, as the latter alone make a really important object of national prosperity. . . . The large workshop (manufacture re? unie) will enrich prodigiously one or two entrepreneurs, but the labourers will only be journeymen, paid more or less, and will not have any share in the success of the undertaking. In the discrete workshop (manufacture separe? e), on the contrary, no one will become rich, but many labourers will be comfortable; the saving and the industrious will be able to amass a little capital, to put by a little for a birth of a child, for an illness, for themselves or their belongings. The number of saving and industrious labourers will increase, because they will see in good conduct, in activity, a means of essentially bettering their condition, and not of obtaining a small rise in wages that can never be of any importance of the future, and whose sole result is to place men in the position to live a little better, but only from day to day. . . . The large workshops, undertakings of certain private persons who pay labourers from day to day to work for their gain, may be able to put these private individuals at their ease, but they will never be an object worth the attention of governments. Discrete workshops, for the most part combined with cultivation of small holdings, are the only free ones. ? 4 The expropriation and eviction of a part of the agricultural population not only set free for industrial capital, the labourers, their means of subsistence, and material for labour; it also created the home-market.
In fact, the events that transformed the small peasants into wage labourers, and their means of subsistence and of labour into material elements of capital, created, at the same time, a home- market for the latter. Formerly, the peasant family produced the means of subsistence and the raw materials, which they themselves, for the most part, consumed. These raw materials and means of subsistence have now become commodities; the large farmer sells them, he finds his market in manufactures. Yarn, linen, coarse woollen stuffs - things whose raw materials had been within the reach of every peasant family, had been spun and woven by it for its own use - were now transformed into articles of manufacture, to which the country districts at once served for markets. The many scattered customers, whom stray artisans until now had found in the numerous small producers working on their own account, concentrate themselves now into one great market provided for by industrial capital. 5 Thus, hand in hand with the expropriation of the self-supporting peasants, with their separation from their means of production, goes the destruction of rural domestic industry, the process of separation between manufacture and agriculture. And only the destruction of rural domestic industry can give the internal market of a country that extension and consistence which the capitalist mode of production requires. Still the manufacturing period, properly so called, does not succeed in carrying out this transformation radically and completely. It will be remembered that manufacture, properly so called, conquers but partially the domain of national production, and always rests on the handicrafts of the town and the domestic industry of the rural districts as its ultimate basis. If it destroys these in one form, in particular branches, at certain points, it calls them up again elsewhere, because it needs them for the preparation of raw material up to a certain point. It produces, therefore, a new class of small villagers who, while following the cultivation of the soil as an accessory calling, find their chief occupation in industrial labour, the products of which they sell to the manufacturers directly, or through the medium of merchants. This is one, though not the chief, cause of a phenomenon which, at first, puzzles the student of English history. 6 From the last third of the
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15th century he finds continually complaints, only interrupted at certain intervals, about the encroachment of capitalist farming in the country districts, and the progressive destruction of the peasantry. On the other hand, he always finds this peasantry turning up again, although in diminished number, and always under worse conditions. The chief reason is: England is at one time chiefly a cultivator of corn, at another chiefly a breeder of cattle, in alternate periods, and with these the extent, supplies, in machinery, the lasting basis of capitalistic agriculture, expropriates radically the enormous majority of the agricultural population, and completes the separation between agriculture and rural domestic industry, whose roots - spinning and weaving - it tears up. 7 It therefore also, for the first time, conquers for industrial capital the entire home market. 8
1 In his --Notions de Philosophie Naturelle. ? Paris, 1838.
2 A point that Sir James Steuart emphasises.
3 --Je permettrai,? says the capitalist, --que vous ayez l'honneur de me servir, a` condition que vous me donnez le peu qui vous reste pour la peine que je prends de vous commander. ? [I will allow you . . . to have the honour of serving me, on condition that, in return for the pains I take in commanding you, you give me the little that remains to you] (J. J. Rousseau: --Discours sur l'Economie Politique. ? )
4 Mirabeau, l. c. , t. III, pp. 20-109 passim. That Mirabeau considers the separate workshops more economical and productive than the --combined,? and sees in the latter merely artificial exotics under government cultivation, is explained by the position at that time of a great part of the continental manufactures.
5 --Twenty pounds of wool converted unobtrusively into yearly clothing of a labourer's family by its own industry in the intervals of other works -- this makes no show; but bring it to market, send it to the factory, thence to the broker, thence to the dealer, and you will have great commercial operations, and nominal capital engaged to the amount of twenty times its value. . . . The working-class is thus emersed to support a wretched factory population, a parastical shop-keeping class, and a fictitious commercial, monetary, and financial system. ? (David Urquhart, l. c. , p. 120. )
6 Cromwell's time forms an exception. So long as the Republic lasted, the mass of the English people of all grades rose from the degradation into which they had sunk under the Tudors.
7 Tuckett is aware that the modern woollen industry has sprung, with the introduction of machinery, from manufacture proper and from the destruction of rural and domestic industries.
--The plough, the yoke, were ? the invention of gods, and the occupation of heroes'; are the loom, the spindle, the distaff, of less noble parentage. You sever the distaff and the plough, the spindle and the yoke, and you get factories and poor-houses, credit and panics, two hostile nations, agriculture and commercial. ? (David Urquhart, l. c. , p. 122. )
But now comes Carey, and cries out upon England, surely not with unreason, that it is trying to turn every other country into a mere agricultural nation, whose manufacturer is to be England. He pretends that in this way Turkey has been ruined, because --the owners and occupants of land have never been permitted by England to strengthen themselves by the formation of that natural alliance between the plough and the loom, the hammer and the harrow. ? (--The Slave Trade,? p. 125. ) According to him, Urquhart himself is one of the chief agents in the ruin of Turkey, where he had made Free-trade propaganda in the English interest. The best of it is that Carey, a great Russophile by the way, wants to prevent the process of separation by that very system of protection which accelerates it.
8 Philanthropic English economists, like Mill, Rogers, Goldwin Smith, Fawcett, &c.
, and liberal manufacturers like John Bright & Co. , ask the English landed proprietors, as God asked Cain after Abel, Where are our thousands of freeholders gone? But where do you come from, then? From the
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destruction of those freeholders. Why don't you ask further, where are the independent weavers, spinners, and artisans gone?
? ? Chapter 31: The Genesis of the Industrial Capitalist
The genesis of the industrial* capitalist did not proceed in such a gradual way as that of the farmer. Doubtless many small guild-masters, and yet more independent small artisans, or even wage labourers, transformed themselves into small capitalists, and (by gradually extending exploitation of wage labour and corresponding accumulation) into full-blown capitalists. In the infancy of capitalist production, things often happened as in the infancy of medieval towns, where the question, which of the escaped serfs should be master and which servant, was in great part decided by the earlier or later date of their flight. The snail's pace of this method corresponded in no wise with the commercial requirements of the new world market that the great discoveries of the end of the 15th century created. But the middle ages had handed down two distinct forms of capital, which mature in the most different economic social formations, and which before the era of the capitalist mode of production, are considered as capital quand me^me [all the same] - usurer's capital and merchant's capital.
--At present, all the wealth of society goes first into the possession of the capitalist . . . he pays the landowner his rent, the labourer his wages, the tax and tithe gatherer their claims, and keeps a large, indeed the largest, and a continually augmenting share, of the annual produce of labour for himself. The capitalist may now be said to be the first owner of all the wealth of the community, though no law has conferred on him the right to this property. . . this change has been effected by the taking of interest on capital . . . and it is not a little curious that all the law- givers of Europe endeavoured to prevent this by statutes, viz. , statutes against usury. . . . The power of the capitalist over all the wealth of the country is a complete change in the right of property, and by what law, or series of laws, was it effected? ? 2
The author should have remembered that revolutions are not made by laws.
The money capital formed by means of usury and commerce was prevented from turning into industrial capital, in the country by the feudal constitution, in the towns by the guild organisation. 3 These fetters vanished with the dissolution of feudal society, with the expropriation and partial eviction of the country population. The new manufactures were established at sea- ports, or at inland points beyond the control of the old municipalities and their guilds. Hence in England an embittered struggle of the corporate towns against these new industrial nurseries.
The discovery of gold and silver in America, the extirpation, enslavement and entombment in mines of the aboriginal population, the beginning of the conquest and looting of the East Indies, the turning of Africa into a warren for the commercial hunting of black-skins, signalised the rosy dawn of the era of capitalist production. These idyllic proceedings are the chief momenta of primitive accumulation. On their heels treads the commercial war of the European nations, with the globe for a theatre. It begins with the revolt of the Netherlands from Spain, assumes giant dimensions in England's Anti-Jacobin War, and is still going on in the opium wars against China, &c.
* Industrial here in contradistinction to agricultural. In the --categoric? sense the farmer is an industrial capitalist as much as the manufacturer.
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The different momenta of primitive accumulation distribute themselves now, more or less in chronological order, particularly over Spain, Portugal, Holland, France, and England. In England at the end of the 17th century, they arrive at a systematical combination, embracing the colonies, the national debt, the modern mode of taxation, and the protectionist system. These methods depend in part on brute force, e. g. , the colonial system. But, they all employ the power of the State, the concentrated and organised force of society, to hasten, hot-house fashion, the process of transformation of the feudal mode of production into the capitalist mode, and to shorten the transition. Force is the midwife of every old society pregnant with a new one. It is itself an economic power.
Of the Christian colonial system, W. Howitt, a man who makes a speciality of Christianity, says:
--The barbarities and desperate outrages of the so-called Christian race, throughout every region of the world, and upon every people they have been able to subdue, are not to be paralleled by those of any other race, however fierce, however untaught, and however reckless of mercy and of shame, in any age of the earth. ? 4
The history of the colonial administration of Holland - and Holland was the head capitalistic nation of the 17th century -
--is one of the most extraordinary relations of treachery, bribery, massacre, and meanness? 5
Nothing is more characteristic than their system of stealing men, to get slaves for Java. The men stealers were trained for this purpose. The thief, the interpreter, and the seller, were the chief agents in this trade, native princes the chief sellers. The young people stolen, were thrown into the secret dungeons of Celebes, until they were ready for sending to the slave-ships. An official report says:
--This one town of Macassar, e. g. , is full of secret prisons, one more horrible than the other, crammed with unfortunates, victims of greed and tyranny fettered in chains, forcibly torn from their families. ?
To secure Malacca, the Dutch corrupted the Portuguese governor. He let them into the town in 1641. They hurried at once to his house and assassinated him, to --abstain? from the payment of ? 21,875, the price of his treason. Wherever they set foot, devastation and depopulation followed. Banjuwangi, a province of Java, in 1750 numbered over 80,000 inhabitants, in 1811 only 18,000. Sweet commerce!
The English East India Company, as is well known, obtained, besides the political rule in India, the exclusive monopoly of the tea-trade, as well as of the Chinese trade in general, and of the transport of goods to and from Europe. But the coasting trade of India and between the islands, as well as the internal trade of India, were the monopoly of the higher employe? s of the company. The monopolies of salt, opium, betel and other commodities, were inexhaustible mines of wealth. The employe? s themselves fixed the price and plundered at will the unhappy Hindus. The Governor-General took part in this private traffic. His favourites received contracts under conditions whereby they, cleverer than the alchemists, made gold out of nothing. Great fortunes sprang up like mushrooms in a day; primitive accumulation went on without the advance of a shilling. The trial of Warren Hastings swarms with such cases. Here is an instance. A contract for opium was given to a certain Sullivan at the moment of his departure on an official mission to a part of India far removed from the opium district. Sullivan sold his contract to one Binn for ? 40,000; Binn sold it the same day for ? 60,000, and the ultimate purchaser who carried out the contract declared that after all he realised an enormous gain. According to one of the lists laid before Parliament, the Company and its employe? s from 1757-1766 got ? 6,000,000 from the Indians as gifts. Between 1769 and 1770, the English manufactured a famine by buying up all the rice and refusing to sell it again, except at fabulous prices. 6
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The treatment of the aborigines was, naturally, most frightful in plantation-colonies destined for export trade only, such as the West Indies, and in rich and well-populated countries, such as Mexico and India, that were given over to plunder. But even in the colonies properly so called, the Christian character of primitive accumulation did not belie itself. Those sober virtuosi of Protestantism, the Puritans of New England, in 1703, by decrees of their assembly set a premium of ? 40 on every Indian scalp and every captured red-skin: in 1720 a premium of ? 100 on every scalp; in 1744, after Massachusetts-Bay had proclaimed a certain tribe as rebels, the following prices: for a male scalp of 12 years and upwards ? 100 (new currency), for a male prisoner ? 105, for women and children prisoners ? 50, for scalps of women and children ? 50. Some decades later, the colonial system took its revenge on the descendants of the pious pilgrim fathers, who had grown seditious in the meantime. At English instigation and for English pay they were tomahawked by red-skins. The British Parliament proclaimed bloodhounds and scalping as --means that God and Nature had given into its hand. ?
The colonial system ripened, like a hot-house, trade and navigation. The --societies Monopolia? of Luther were powerful levers for concentration of capital. The colonies secured a market for the budding manufactures, and, through the monopoly of the market, an increased accumulation. The treasures captured outside Europe by undisguised looting, enslavement, and murder, floated back to the mother-country and were there turned into capital. Holland, which first fully developed the colonial system, in 1648 stood already in the acme of its commercial greatness. It was
--in almost exclusive possession of the East Indian trade and the commerce between the south-east and north-west of Europe. Its fisheries, marine, manufactures, surpassed those of any other country. The total capital of the Republic was probably more important than that of all the rest of Europe put together. ? Gu? lich forgets to add that by 1648, the people of Holland were more over-worked, poorer and more brutally oppressed than those of all the rest of Europe put together.
Today industrial supremacy implies commercial supremacy. In the period of manufacture properly so called, it is, on the other hand, the commercial supremacy that gives industrial predominance. Hence the preponderant ro^le that the colonial system plays at that time. It was --the strange God? who perched himself on the altar cheek by jowl with the old Gods of Europe, and one fine day with a shove and a kick chucked them all of a heap. It proclaimed surplus value making as the sole end and aim of humanity.
The system of public credit, i. e. , of national debts, whose origin we discover in Genoa and Venice as early as the Middle Ages, took possession of Europe generally during the manufacturing period. The colonial system with its maritime trade and commercial wars served as a forcing- house for it. Thus it first took root in Holland. National debts, i. e. , the alienation of the state - whether despotic, constitutional or republican - marked with its stamp the capitalistic era. The only part of the so-called national wealth that actually enters into the collective possessions of modern peoples is their national debt. 7 Hence, as a necessary consequence, the modern doctrine that a nation becomes the richer the more deeply it is in debt. Public credit becomes the credo of capital. And with the rise of national debt-making, want of faith in the national debt takes the place of the blasphemy against the Holy Ghost, which may not be forgiven.
The public debt becomes one of the most powerful levers of primitive accumulation. As with the stroke of an enchanter's wand, it endows barren money with the power of breeding and thus turns it into capital, without the necessity of its exposing itself to the troubles and risks inseparable from its employment in industry or even in usury. The state creditors actually give nothing away, for the sum lent is transformed into public bonds, easily negotiable, which go on functioning in their hands just as so much hard cash would. But further, apart from the class of lazy annuitants
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thus created, and from the improvised wealth of the financiers, middlemen between the government and the nation - as also apart from the tax-farmers, merchants, private manufacturers, to whom a good part of every national loan renders the service of a capital fallen from heaven - the national debt has given rise to joint-stock companies, to dealings in negotiable effects of all kinds, and to agiotage, in a word to stock-exchange gambling and the modern bankocracy.
At their birth the great banks, decorated with national titles, were only associations of private speculators, who placed themselves by the side of governments, and, thanks to the privileges they received, were in a position to advance money to the State. Hence the accumulation of the national debt has no more infallible measure than the successive rise in the stock of these banks, whose full development dates from the founding of the Bank of England in 1694. The Bank of England began with lending its money to the Government at 8%; at the same time it was empowered by Parliament to coin money out of the same capital, by lending it again to the public in the form of banknotes. It was allowed to use these notes for discounting bills, making advances on commodities, and for buying the precious metals. It was not long ere this credit-money, made by the bank itself, became. the coin in which the Bank of England made its loans to the State, and paid, on account of the State, the interest on the public debt. It was not enough that the bank gave with one hand and took back more with the other; it remained, even whilst receiving, the eternal creditor of the nation down to the last shilling advanced. Gradually it became inevitably the receptacle of the metallic hoard of the country, and the centre of gravity of all commercial credit. What effect was produced on their contemporaries by the sudden uprising of this brood of bankocrats, financiers, rentiers, brokers, stock-jobbers, &c. , is proved by the writings of that time, e. g. , by Bolingbroke's. 8
With the national debt arose an international credit system, which often conceals one of the sources of primitive accumulation in this or that people. Thus the villainies of the Venetian thieving system formed one of the secret bases of the capital-wealth of Holland to whom Venice in her decadence lent large sums of money. So also was it with Holland and England. By the beginning of the 18th century the Dutch manufactures were far outstripped. Holland had ceased to be the nation preponderant in commerce and industry. One of its main lines of business, therefore, from 1701-1776, is the lending out of enormous amounts of capital, especially to its great rival England. The same thing is going on today between England and the United States. A great deal of capital, which appears today in the United States without any certificate of birth, was yesterday, in England, the capitalised blood of children.
As the national debt finds its support in the public revenue, which must cover the yearly payments for interest, &c. , the modern system of taxation was the necessary complement of the system of national loans. The loans enable the government to meet extraordinary expenses, without the tax-payers feeling it immediately, but they necessitate, as a consequence, increased taxes. On the other hand, the raising of taxation caused by the accumulation of debts contracted one after another, compels the government always to have recourse to new loans for new extraordinary expenses. Modern fiscality, whose pivot is formed by taxes on the most necessary means of subsistence (thereby increasing their price), thus contains within itself the germ of automatic progression. Overtaxation is not an incident, but rather a principle. In Holland, therefore, where this system was first inaugurated, the great patriot, DeWitt, has in his --Maxims? extolled it as the best system for making the wage labourer submissive, frugal, industrious, and overburdened with labour. The destructive influence that it exercises on the condition of the wage labourer concerns us less however, here, than the forcible expropriation, resulting from it, of peasants, artisans, and in a word, all elements of the lower middle class. On this there are not two opinions, even among the bourgeois economists. Its expropriating efficacy is still further heightened by the system of protection, which forms one of its integral parts.
? 531 Chapter 31
The great part that the public debt, and the fiscal system corresponding with it, has played in the capitalisation of wealth and the expropriation of the masses, has led many writers, like Cobbett, Doubleday and others, to seek in this, incorrectly, the fundamental cause of the misery of the modern peoples.
The system of protection was an artificial means of manufacturing manufacturers, of expropriating independent labourers, of capitalising the national means of production and subsistence, of forcibly abbreviating the transition from the medieval to the modern mode of production. The European states tore one another to pieces about the patent of this invention, and, once entered into the service of the surplus value makers, did not merely lay under contribution in the pursuit of this purpose their own people, indirectly through protective duties, directly through export premiums. They also forcibly rooted out, in their dependent countries, all industry, as, e. g. , England did. with the Irish woollen manufacture. On the continent of Europe, after Colbert's example, the process was much simplified. The primitive industrial capital, here, came in part directly out of the state treasury. --Why,? cries Mirabeau, --why go so far to seek the cause of the manufacturing glory of Saxony before the war? 180,000,000 of debts contracted by the sovereigns! ? 9
Colonial system, public debts, heavy taxes, protection, commercial wars, &c. , these children of the true manufacturing period, increase gigantically during the infancy of Modem Industry. The birth of the latter is heralded by a great slaughter of the innocents. Like the royal navy, the factories were recruited by means of the press-gang. Blase? as Sir F. M. Eden is as to the horrors of the expropriation of the agricultural population from the soil, from the last third of the 15th century to his own time; with all the self-satisfaction with which he rejoices in this process, --essential? for establishing capitalistic agriculture and --the due proportion between arable and pasture land? - he does not show, however, the same economic insight in respect to the necessity of child-stealing and child-slavery for the transformation of manufacturing exploitation into factory exploitation, and the establishment of the --true relation? between capital and labour- power. He says:
--It may, perhaps, be worthy the attention of the public to consider, whether any manufacture, which, in order to be carried on successfully, requires that cottages and workhouses should be ransacked for poor children; that they should be employed by turns during the greater part of the night and robbed of that rest which, though indispensable to all, is most required by the young; and that numbers of both sexes, of different ages and dispositions, should be collected together in such a manner that the contagion of example cannot but lead to profligacy and debauchery; will add to the sum of individual or national felicity? ? 10
--In the counties of Derbyshire, Nottinghamshire, and more particularly in Lancashire,? says Fielden, --the newly-invented machinery was used in large factories built on the sides of streams capable of turning the water-wheel.
