of labor left for other employment is expended in creating fixed capital, such as buildings, machinery, engineering works, and so forth.”
“One point occurs to me,” I said, “on which I should think there might be dissatisfaction. Where there is no opportunity for private enterprise, how is there any assurance that the claims of small minorities of the people to have articles produced, for which there is no wide demand, will be respected? An official decree at any moment may deprive them of the means of gratifying some special taste, merely because the majority does not share it.”
“That would be tyranny indeed,” replied Dr. Leete, “and you may be very sure that it does not happen with us, to whom liberty is as dear as equality or fraternity. As you come to know our system better, you will see that our officials are in fact, and not merely in name, the agents and servants of the people. The administration has no power to stop the production of any commodity for which there continues to be a demand. Suppose the demand for any article declines to such a point that its production becomes very costly. The price has to be raised in proportion, of course, but as long as the consumer cares to pay it, the production goes on. Again, suppose an article not before produced is demanded. If the administration doubts the reality of the demand, a popular petition guaranteeing a certain basis of consumption compels it to produce the desired article. A government, or a majority, which should undertake to tell the people, or a minority, what they were to eat, drink, or wear, as I believe governments in America did in your day, would be regarded as a curious anachronism indeed. Possibly you had reasons for tolerating these infringements of personal independence, but we should not think them endurable. I am glad you raised this point, for it has given me a chance to show you how much more direct and efficient is the control over production exercised by the individual citizen now than it was in your day, when what you called private initiative prevailed, though it should have been called capitalist initiative, for the average private citizen had little enough share in it.”
“You speak of raising the price of costly articles,” I said. “How can prices be regulated in a country where there is no competition between buyers or sellers?”
“Just as they were with you,” replied Dr. Leete. “You think that needs explaining,” he added, as I looked incredulous, “but the explanation need not be long; the cost of the labor which produced it was recognized as the legitimate basis of the price of an article in your day, and so it is in ours. In your day, it was the difference in wages that made the difference in the cost of labor; now it is the relative number of hours constituting a day’s work in different trades, the maintenance of the worker being equal in all cases. The cost of a man’s work in a trade so difficult that in order to attract volunteers the hours have to be fixed at four a day is twice as great as that in a trade where the men work eight hours. The result as to the cost of labor, you see, is just the same as if the man working four hours were paid, under your system, twice the wages the others get. This calculation applied to the labor employed in the various processes of a manufactured article gives its price relatively to other articles. Besides the cost of production and transportation, the factor of scarcity affects the prices of some commodities. As regards the great staples of life, of which an abundance can always be secured, scarcity is eliminated as a factor. There is always a large surplus kept on hand from which any fluctuations of demand or supply can be corrected, even in most cases of bad crops. The prices of the staples grow less year by year, but rarely, if ever, rise. There are, however, certain classes of articles permanently, and others temporarily, unequal to the demand, as, for example, fresh fish or dairy products in the latter category, and the products of high skill and rare materials in the other. All that can be done here is to equalize the inconvenience of the scarcity. This is done by temporarily raising the price if the scarcity be temporary, or fixing it high if it be permanent. High prices in your day meant restriction of the articles affected to the rich, but nowadays, when the means of all are the same, the effect is only that those to whom the articles seem most desirable are the ones who purchase them. Of course the nation, as any other caterer for the public needs must be, is frequently left with small lots of goods on its hands by changes in taste, unseasonable weather and various other causes. These it has to dispose of at a sacrifice just as merchants often did in your day, charging up the loss to the expenses of the business. Owing, however, to the vast body of consumers to which such lots can be simultaneously offered, there is rarely any difficulty in getting rid of them at trifling loss. I have given you now some general notion of our system of production; as well as distribution. Do you find it as complex as you expected?”
I admitted that nothing could be much simpler.
“I am sure,” said Dr. Leete, “that it is within the truth to say that the head of one of the myriad private businesses of your day, who had to maintain sleepless vigilance against the fluctuations of the market, the machinations of his rivals, and the failure of his debtors, had a far more trying task than the group of men at Washington who nowadays direct the industries of the entire nation. All this merely shows, my dear fellow, how much easier it is to do things the right way than the wrong. It is easier for a general up in a balloon, with perfect survey of the field, to manoeuvre a million men to victory than for a sergeant to manage a platoon in a thicket.”
“The general of this army, including the flower of the manhood of the nation, must be the foremost man in the country, really greater even than the President of the United States,” I said.
“He is the President of the United States,” replied Dr. Leete, “or rather the most important function of the presidency is the headship of the industrial army.”
“How is he chosen?” I asked.
“I explained to you before,” replied Dr. Leete, “when I was describing the force of the motive of emulation among all grades of the industrial army, that the line of promotion for the meritorious lies through three grades to the officer’s grade, and thence up through the lieutenancies to the captaincy or foremanship, and superintendency or colonel’s rank. Next, with an intervening grade in some of the larger trades, comes the general of the guild, under whose immediate control all the operations of the trade are conducted. This officer is at the head of the national bureau representing his trade, and is responsible for its work to the administration. The general of his guild holds a splendid position, and one which amply satisfies the ambition of most men, but above his rank, which may be compared — to follow the military analogies familiar to you — to that of a general of division or major-general, is that of the chiefs of the ten great departments, or groups of allied trades. The chiefs of these ten grand divisions of the industrial army may be compared to your commanders of army corps, or lieutenant-generals, each having from a dozen to a score of generals of separate guilds reporting to him. Above these ten great officers, who form his council, is the general-inchief, who is the President of the United States.
“The general-inchief of the industrial army must have passed through all the grades below him, from the common laborers up. Let us see how he rises. As I have told you, it is simply by the excellence of his record as a worker that one rises through the grades of the privates and becomes a candidate for a lieutenancy. Through the lieutenancies he rises to the colonelcy, or superintendent’s position, by appointment from above, strictly limited to the candidates of the best records. The general of the guild appoints to the ranks under him, but he himself is not appointed, but chosen by suffrage.”
“By suffrage!” I exclaimed. “Is not that ruinous to the discipline of the guild, by tempting the candidates to intrigue for the support of the workers under them?”
“So it would be, no doubt,” replied Dr. Leete, “if the workers had any suffrage to exercise, or anything to say about the choice. But they have nothing. Just here comes in a peculiarity of our system. The general of the guild is chosen from among the superintendents by vote of the honorary members of the guild, that is, of those who have served their time in the guild and received their discharge. As you know, at the age of forty-five we are mustered out of the army of industry, and have the residue of life for the pursuit of our own improvement or recreation. Of course, however, the associations of our active lifetime retain a powerful hold on us. The companionships we formed then remain our companionships till the end of life. We always continue honorary members of our former guilds, and retain the keenest and most jealous interest in