millennium. With the city before me I could well believe that, but I am very curious to know what some of the changes have been. To make a beginning somewhere, for the subject is doubtless a large one, what solution, if any, have you found for the labor question? It was the Sphinx’s riddle of the nineteenth century, and when I dropped out the Sphinx was threatening to devour society, because the answer was not forthcoming. It is well worth sleeping a hundred years to learn what the right answer was, if, indeed, you have found it yet.”
“As no such thing as the labor question is known nowadays,” replied Dr. Leete, “and there is no way in which it could arise, I suppose we may claim to have solved it. Society would indeed have fully deserved being devoured if it had failed to answer a riddle so entirely simple. In fact, to speak by the book, it was not necessary for society to solve the riddle at all. It may be said to have solved itself. The solution came as the result of a process of industrial evolution which could not have terminated otherwise. All that society had to do was to recognize and cooperate with that evolution, when its tendency had become unmistakable.”
“I can only say,” I answered, “that at the time I fell asleep no such evolution had been recognized.”
“It was in 1887 that you fell into this sleep, I think you said.”
“Yes, May 30th, 1887.”
My companion regarded me musingly for some moments. Then he observed, “And you tell me that even then there was no general recognition of the nature of the crisis which society was nearing? Of course, I fully credit your statement. The singular blindness of your contemporaries to the signs of the times is a phenomenon commented on by many of our historians, but few facts of history are more difficult for us to realize, so obvious and unmistakable as we look back seem the indications, which must also have come under your eyes, of the transformation about to come to pass. I should be interested, Mr. West, if you would give me a little more definite idea of the view which you and men of your grade of intellect took of the state and prospects of society in 1887. You must, at least, have realized that the widespread industrial and social troubles, and the underlying dissatisfaction of all classes with the inequalities of society, and the general misery of mankind, were portents of great changes of some sort.”
“We did, indeed, fully realize that,” I replied. “We felt that society was dragging anchor and in danger of going adrift. Whither it would drift nobody could say, but all feared the rocks.”
“Nevertheless,” said Dr. Leete, “the set of the current was perfectly perceptible if you had but taken pains to observe it, and it was not toward the rocks, but toward a deeper channel.”
“We had a popular proverb,” I replied, “that ‘hindsight is better than foresight,’ the force of which I shall now, no doubt, appreciate more fully than ever. All I can say is, that the prospect was such when I went into that long sleep that I should not have been surprised had I looked down from your house-top today on a heap of charred and moss-grown ruins instead of this glorious city.”
Dr. Leete had listened to me with close attention and nodded thoughtfully as I finished speaking. “What you have said,” he observed, “will be regarded as a most valuable vindication of Storiot, whose account of your era has been generally thought exaggerated in its picture of the gloom and confusion of men’s minds. That a period of transition like that should be full of excitement and agitation was indeed to be looked for; but seeing how plain was the tendency of the forces in operation, it was natural to believe that hope rather than fear would have been the prevailing temper of the popular mind.”
“You have not yet told me what was the answer to the riddle which you found,” I said. “I am impatient to know by what contradiction of natural sequence the peace and prosperity which you now seem to enjoy could have been the outcome of an era like my own.”
“Excuse me,” replied my host, “but do you smoke?” It was not till our cigars were lighted and drawing well that he resumed. “Since you are in the humor to talk rather than to sleep, as I certainly am, perhaps I cannot do better than to try to give you enough idea of our modern industrial system to dissipate at least the impression that there is any mystery about the process of its evolution. The Bostonians of your day had the reputation of being great askers of questions, and I am going to show my descent by asking you one to begin with. What should you name as the most prominent feature of the labor troubles of your day?”
“Why, the strikes, of course,” I replied.
“Exactly; but what made the strikes so formidable?”
“The great labor organizations.”
“And what was the motive of these great organizations?”
“The workmen claimed they had to organize to get their rights from the big corporations,” I replied.
“That is just it,” said Dr. Leete; “the organization of labor and the strikes were an effect, merely, of the concentration of capital in greater masses than had ever been known before. Before this concentration began, while as yet commerce and industry were conducted by innumerable petty concerns with small capital, instead of a small number of great concerns with vast capital, the individual workman was relatively important and independent in his relations to the employer. Moreover, when a little capital or a new idea was enough to start a man in business for himself, workingmen were constantly becoming employers and there was no hard and fast line between the two classes. Labor unions were needless then, and general strikes out of the question. But when the era of small concerns with small capital was succeeded by that of the great aggregations of capital, all this was changed. The individual laborer, who had been relatively important to the small employer, was reduced to insignificance and powerlessness over against the great corporation, while at the same time the way upward to the grade of employer was closed to him. Self-defense drove him to union with his fellows.
“The records of the period show that the outcry against the concentration of capital was furious. Men believed that it threatened society with a form of tyranny more abhorrent than it had ever endured. They believed that the great corporations were preparing for them the yoke of a baser servitude than had ever been imposed on the race, servitude not to men but to soulless machines incapable of any motive but insatiable greed. Looking back, we cannot wonder at their desperation, for certainly humanity was never confronted with a fate more sordid and hideous than would have been the era of corporate tyranny which they anticipated.
“Meanwhile, without being in the smallest degree checked by the clamor against it, the absorption of business by ever larger monopolies continued. In the United States there was not, after the beginning of the last quarter of the century, any opportunity whatever for individual enterprise in any important field of industry, unless backed by a great capital. During the last decade of the century, such small businesses as still remained were fast-failing survivals of a past epoch, or mere parasites on the great corporations, or else existed in fields too small to attract the great capitalists. Small businesses, as far as they still remained, were reduced to the condition of rats and mice, living in holes and corners, and counting on evading notice for the enjoyment of existence. The railroads had gone on combining till a few great syndicates controlled every rail in the land. In manufactories, every important staple was controlled by a syndicate. These syndicates, pools, trusts, or whatever their name, fixed prices and crushed all competition except when combinations as vast as themselves arose. Then a struggle, resulting in a still greater consolidation, ensued. The great city bazar crushed it country rivals with branch stores, and in the city itself absorbed its smaller rivals till the business of a whole quarter was concentrated under one roof, with a hundred former proprietors of shops serving as clerks. Having no business of his own to put his money in, the small capitalist, at the same time that he took service under the corporation, found no other investment for his money but its stocks and bonds, thus becoming doubly dependent upon it.
“The fact that the desperate popular opposition to the consolidation of business in a few powerful hands had no effect to check it proves that there must have been a strong economical reason for it. The small capitalists, with their innumerable petty concerns, had in fact yielded the field to the great aggregations of capital, because they belonged to a day of small things