Behind the Mirrors: The Psychology of Disintegration at Washington

We paid five cent fares on the street cars and were hopeful that they would become three cent fares; three cents was established by law in many cities as the maximum charge. The railroads collected a little over two cents a mile for carrying passengers and in many states statutes were enacted establishing two cents a mile as the legal rate. We were impressed by striking examples of lowering prices, in the automobile industry for example, and were confident that this was the rule of modern life.

Prices, except of food products, were steadily decreasing; there might be an end to this movement but we were nowhere near the end. The wonders of modern inventions, and if not these, the economics of concentrated organization, and if not these, the use of by-products, were steadily lowering costs. The standard of living was rising. What was the rich man's luxury in one generation was the poor man's necessity in the next. It would always be so. That was Progress.

We now pay seven or eight cents to ride on street cars and more than three cents a mile to travel on trains. All prices have advanced. The standard of living has declined and we ask ourselves if it will not have to decline still further. No one now talks of a six-hour day. We recognize a check in the process toward increasing well-being at less effort. Life has become more difficult. Progress is no longer a simple and steady movement onward in a single direction. Like evolution sometimes it seems to stand still or perhaps go back. Like evolution it requires a vital élan; it is a thing of leaps and rests. We are less enthusiastic about it when it rests.

We blame our discomfiture, the higher prices and the lower standard of living on the war, but much of it was inevitable, war or no war. The idea that the struggle for existence would grow steadily easier was largely a conclusion from appearances. We were raising our standard of living by skimming the cream of our natural resources. When our original forests were cut, when the most easily mined veins of iron and coal were exhausted, when oil wells ceased to gush and had to be pumped, unless substitutes were found, all the basic costs of production would advance. Ultimately they would advance to the point where economies of organization, of quantity production, of by-product development, so far as they have been realized, would no longer serve to keep down final prices. We were rapidly reaching that point when the war came.

We lived under an illusion. What we called the results of progress was the rapid exhaustion of easily available resources. We used our capital and thought ourselves rich. And we lie under a burden of debt made much heavier by the weapons which progress put into our hands. Progress had not made war too expensive to fight but it had made peace too expensive to be borne. We forgot the law of diminishing returns. We ignored the lessons of history that all ages come to an end, when the struggle for existence once more grows severe until new instruments are found equal to the further conquest over nature. Useful inventions have not kept pace with increasing consumption and rapidly disappearing virgin resources. The process of steadily lowering costs of production has stopped and reverse process has set in. Spectacular inventions like the airplane have deluded us into the belief that Progress, always blessing us, we had the world by the tail. But coal and iron became harder and costlier to mine. Oil neared exhaustion. Timber grew scarcer. Agricultural lands smaller in proportion to population.

Immense possibilities lie before us. So they did before the man with the stone hatchet in his hand, but he waited long for the steam, saw and drill and crusher. An invention which would mean as much in the conquest of nature as did the steam engine would make the war debt as easily borne as the week's account at the grocery store. But when will progress vouchsafe it? Converting coal into power we waste 85 per cent of its energy in coal and call that efficient. But does Progress always respond instantly to our needs with new methods and devices, like a nurse responding to a hungry child? A few years ago we were sure it did, but now we look anxiously at the skies for a sign.

We had another characteristic pleasant illusion during the war. Progress, like the Lord, in all previous conflicts was on our side. Here was a great need of humanity. Surely, according to rule, it should be met by some great invention that would blast the Germans out of their places in the earth and give the sons of light an easy and certain victory. All the familiars of the deity sat about in boards watching for the indication that the engine to meet the needs of civilization had been granted. But it never was.

I do not write this to suggest that men, especially American men, have ceased to believe in Progress. They would be fools if they had. I write to suggest that they have ceased to believe in Progress. They would be fools if they had not. A great illusion is gone, one of the chief dislocations wrought by the war.

What the war has done to our way of thinking has been to lay a new stress upon man as a free and responsible agent. After all the battles were won not by guns, or tanks or gas or airplanes, but as always by the common man offering his breast to the shots of the enemy. The hope of the future is all in human organizations, in societies of nations, in councils and conferences. Men's minds turn once more to governments with renewed expectation. Not only do we think for the first time seriously of a government of the world but we focus more attention on the government at Washington. Groups with special interests to serve reach out openly to control it.

The war laid a new emphasis on government. Not only did the government have our persons and our lives at its command but it assumed authority over our food, it directed our factories and our railroads, it told us what we could manufacture and ship, it decided who could borrow of the general credit and for what purposes, it fixed the prices at which we could buy and sell. It came to occupy a new place in the national consciousness and one which it will never wholly lose. One rival to it, – the belief, having its roots in early religious ideas, and strengthened by scientific theory and the outward results of the great inventions, that moved by some irresistible impulse, life went steadily forward to higher and higher planes, and that man had but little to do but pluck the fruits of progress – has been badly shattered by events.

But men do not change beliefs suddenly. Perhaps after all the war was only the way of progress – to usher in a new and brilliant day. Perhaps the unfolding future has something near in store far greater and better than went before. We shall not trust men too far, men with their obstinate blindness, men with their originally sinful habit of thinking they know better than the forces which rule the world. We want not leaders but weather cocks, who will veer to the kindlier wind that may blow when it is yet only a zephyr.

We turn to men yet, we cling a little to the hope that fate will yet save us. This division in us accounts for Lloyd George and Harding, our own commonplace "best we have on hand" substitute for the infinitely variable Englishman, adjusted to every breath that blows, who having no set purpose of his own offers no serious obstacle to any generous design of fate.

Senator Borah once said to me, "The Administration has no definite policies." And it is not Mr. Harding's fault. If he wanted to form any the people wouldn't let him. They elected him not to have any. They desired in the White House some one who would not look further ahead than the next day until the future became clearer. If he had purposes events might prove them to be wrong.

The same fundamental idea underlay the remark of a member of the Cabinet, at the outset of the recent disarmament and Far Eastern Conference, that "Lloyd George was the hope of the gathering because he had no principles."

The war destroyed many men but it half restored Man. You see how inevitable optimism is. The ways of Progress are indeed past finding out. Governments during it performed the impossible. They even took in hand the vast industrial mechanism which we ordinarily leave to the control of the "forces." We half suspect they might do the impossible in peace but we half hope that some kindlier fate is in store for us than to trust ourselves to human intelligence. We don't know whether to put our money on Man or on Progress; so we put it on Mr. Harding.

CHAPTER III

GOLDEN WORDS TURN TO BRASS

Unlike government by Progress, government by business, by the semi-sacred intermediaries between the will to increase and the rest of us, began to disintegrate before the war; which merely completed the process.

Let us consider what has happened in the last few years to government by business, that government which the smoking compartment philosopher has in mind when he says so hopefully of Mr. Harding: "They will see to it that he gets along all right."

The first manifestation of nationality in this country was the nationality of business. Before industry became national nothing was national. The United States was a pleasant congeries of localities. It was held together by reading everywhere the story of the Battle of Bunker Hill in the same school history, which sometimes bore a different author's name but which was always the same history. "Don't fire till you can see the whites of their eyes" and "If we don't hang together we shall all hang separately" were the unifying bond, and they were enough. We had the same sense of identity as an infant has when it becomes aware that the delightful toe and the delightful mouth where it is inserted appertain vaguely to the one ego. The local factory and the local bank subtended the entire arc of economic consciousness. There was one single-track railroad which ran from Podunk to Peopack and another from Peopack to Peoria, unrelated, discontinuous.

In those simple times when business was local the local factory owner, banker, or railroad builder was the hero of his neighborhood. It was he who "put the town on the map." He gave it prosperity. He built it by attracting labor into his employment. He gave it contact with the outside world. If you owned town lots it was he who gave them value and it was he who might take away their value if he was offended. If you had a general store it was he who added to its patronage by adding to the population. If you raised farm products nearby it was he who improved your market. He built the fine house which it was your pride to show visitors. Your success and happiness was bound up in his. He conferred his blessings for a consideration, for you were careful to make no laws which restricted the freedom of his operations. You permitted him a vast unofficial "say" in your local government; you gave him a little the best of it in the assessment for taxes. You felt a little lifted up by his condescension in calling you by your first name and stopping to ask about your family on the street corner. You were jealous of his rights because after all the value of your own depended upon his use of his.

When business figures arose upon the national horizon they were merely these local figures vastly multiplied. As a people we called them "Jim" and "Jay," and "Dan'l," just as we had called the local manufacturer and banker by their first names. All the good will that went to the local business leaders went to them. They put money into our pockets, when they didn't happen to take it out of our pockets; on the whole they were doing the great work of making this country a richer and better land. Some who did not conceive the resources of the printing press in the issuance of new securities had to suffer, but that was their lookout; suffering for some was the way of the world.

Business began to be national in the tying together into systems the little dislocated railroads that local enterprise had laid down and in the creation of a national securities market for the distribution of ownership in the new combinations.

A new era opened when Gould and Fisk and Drew started at full speed their rival printing presses in Wall Street. Look over our whole drab political story from the death of Lincoln to the arrival of Roosevelt, more than a generation, and, if we did not preserve the names of our Presidents in our histories, how many names are there worth remembering? Garfield was shot, which was dramatic. Cleveland was a fat man who used long Latin words. He was also the first Democratic chief executive in more than thirty years. What else? Who else?

Meanwhile an amazing array of business personages diverted attention from the inconspicuous Hayeses, Arthurs, and McKinleys, who were the flower of our public life. Gould, Fisk, Drew, Hill, Carnegie, the Rockefellers, Harriman, Morgan, Ryan – business was fertile of men, politics sterile; you have to go back to the foundation of the government for a period so prolific in men, of the other sort, or to the age of Elizabeth or of Pericles for another as prolific in men, of still another kind. How could the dull sideshow in Washington compete with the big spectacle in New York?

These demigods of business were not only shining personalities; they were doing the work of making America great and rich; we all shared in the prosperity they were creating. To go back to the small town again, who was it increased the opportunities of the storekeeper, the neighboring farmer, or real estate holder? Was it the mayor and the common council by passing ordinances about street signs and sidewalk encumbrances? Or the manufacturer or railroad builder who put the town on the map, giving employment to labor or an outlet for its products?

The government at Washington occupied a place in our consciousness similar to that of the government of the small town. It was charged with our national defense, a function of such little importance that we had hardly an army or a navy. It conducted our economic defense, against the foreigner, with laws written, however, by business itself, which naturally knew best how it wanted to be defended; you could not, in your proper senses, suppose that the Hayeses, Arthurs, and McKinleys were wiser than the Carnegies, Hills, Morgans, or Harrimans. For the rest it was told severely to let well enough alone. To make assurance doubly sure that it would do so it was rather openly given over to the great men who were creating the national wealth.

Starting with the combination of the little speculatively built railroads into systems and the development of a security market to float the shares of stock in the new companies, business took on rapidly a more and more national character. Great bankers arose to finance the consolidations. An investing public with a wider horizon than that which used to put its money in local enterprises entrusted its funds in the hands of the great bankers or took its chances in the market for stocks. Industry went through a similar concentration. Stronger companies absorbed their weaker and less successful rivals. The same bankers who sat in the boards of directors of the railroads representing their investing public took their places in the directorate of manufacturing combinations.

The railroads seeking the business of the big industrial companies and the big industrial companies desiring favors from the railroads placed representatives in each others' boards. This interlocking created a national organization of business dominated by a few striking and spectacular figures.

The popular imagination was as much heated over the discovery of the United States as a single field of enterprise as the imagination of Europe had been centuries earlier over the discovery of the new world.

The psychology of the local industry period carried over into this new period of national industry. The whole country became one vast small town. The masters of industry, banking, and the railroads were the leading citizens. They were "putting the United States on the map," as the local creator of wealth had put the small town on the map. They were doing something vast, from which we all undoubtedly benefited. Perhaps we could not trace our advantage so immediately as we could to the enterprise of the man who brought population to our town, swelling the price of our real estate or increasing the sales at our stores. But what had been a matter of experience on a small scale was a matter of belief on a large scale. The same consequences must follow, with manifold abundance. And the nation was demonstrably growing rapidly, immensely richer; surely cause and effect.

Business had from the first taken on among us, as Mr. Lowes Dickinson remarks, a religious character; and when by a great thrust it overreached the bounds of locality and became national, its major prophets emerged. Mr. Van Wyck Brooks quotes Mark Twain as writing: "The words of a proprietor of a rich coal mine have a golden sound, and his common sayings are as if they were solid wisdom." How much more of this sacred character inhered in the heroes who created nationwide railroad systems, vast steelmaking consolidations, monopolies of oil and coal!

When a New York lawyer said of E. H. Harriman that he moved in spheres which no one else dare tread, he was putting, a little late, into words the national awe of the men who had overleapt the bounds of locality and bestrode the continent industrially, the heads of the vast business hierarchy. When Mr. Baer said that he operated the Reading Railroad by divine right he said only what a worshipping people had taught him to think. Those men did not use this half-religious language by accident; they crystallized into phrases the feeling of the country toward those who had done God's work of making it rich, making it successful.

Each like an unconscious Cervantes helped to laugh our industrial chivalry away.

How easy it is to believe about yourself what everyone believes about you! How hard not to! How easy to believe that you rule railroads by "divine right," or walk in "higher spheres," when the whole unexpressed consciousness of a hundred million people assigns you just such hieratic appurtenances and privileges. How doubt in the face of all this evidence? They identified themselves with Progress, and Progress was what ruled the world. If you have faith and if you are fortified with the faith of others, self-identification with one of the larger forces is not difficult. Was not what they were doing Progress, was it not the realization of that benignant will to the utter blossoming of chaos into utility which was planned in the beginning? Were they not instruments rather than mere men, instruments of the greater purpose of which America was the perfect work? If you believe in theocratic forces you believe also in chosen human agencies for carrying them out.

They were more than instruments of Progress. I have spoken of government by economic law as having challenged political government in the consciousness of the people. As a country we perhaps believe in economic law more firmly than any nation in the world. Wasn't America being produced in accordance with economic law and wasn't America one of the marvels of the earth? I asked a salesman recently, a man with no personal interests which would give him the prejudices of the business world, why he hated Henry Ford. "Because," he replied instantly and without hesitation, "he defies economic law." He spoke like a true American. To defy economic law and make money at it is like selling the Savior for twenty pieces of silver.

"The physical laws," says De Gourmont, "promulgated or established by the scientists, are confessions of ignorance. When they cannot explain a mechanism they declare its movements are due to a law. Bodies fall by virtue of the law of gravitation. This has precisely the same value in the serious order as the comic virtus dormitiva." In the promulgation of economic law our interest perverts the simple and just operation of our ignorance. In the field of physical phenomena we perceive a series of uniform events and call that uniformity a law. In the field of economic phenomena we perceive a series of events uniformly serving our interests and call that uniformity a law.

These greater business men of the past fruitful generation operated on the whole over a long period of falling prices. Wealth accumulated. You read about it in the government reports, dividing the total by the total population. The division thus effected was mighty assuring. Labor was better paid. Higher institutions of learning multiplied. Libraries housed in marble grew upon every crossroads. Intellectual as well as material needs were in process of being better satisfied. We were approaching an age when ink upon white paper, now so cheap, cheaper than ever in the pitiful past, should lift humanity to a new and higher level.

The evidence was conclusive. These greater business men were in supreme, in conspicuous direction of the country's development. The happiest results followed. They worked in harmony with economic law, for they prospered gloriously and one could no more break economic law and prosper than one could break criminal law and keep out of jail. Until Ford came no one could defy economic law with impunity.

And law and justice being two ideas that associate themselves together in the human mind, in a binder of optimism perhaps, like the disparate elements that form clinkers in a furnace, they were accomplishing that perfect work of the justice which inhered in things at the beginning, when tiny atoms with the urge to produce an earth fit for man to live on, to produce America in short, began to discover affinities for each other. No wonder they penetrated "higher spheres" ruled by "divine right," and that "golden words" dropped from their mouths. Progress, destiny, an instinct for economic law, it was much to unite one man.

Again, they were more than this. Men cannot be so universally looked to for the welfare of the nation as they were, without becoming in effect the government of that nation. Business and the government were one. Public opinion at that time would have regarded an administration which defied the great commercial interests as dangerous to the country's advancement. Lawyers like Mr. Knox or Mr. Root, who had proved their value to them, went to the Senate as their spokesmen. Able and ambitious men in both Houses of Congress, wishing power and influence, became their agents. The chairmen of the important committees of both houses were in their confidence and spoke with authority because of what they represented. Some of the virtue of the great, some shadow of divine right, descended upon them. Among valets the valet of the king is king.

We forget, in the great outcry that was raised a few years ago over the "invisible government," that the invisible government was once sufficiently visible, almost consciously recognized, and fully accepted. It seemed the most natural thing in the world that the men who were making the country rich, making it a nation economically, should work their will freely at Washington. We jealously guarded their liberties. Woe unto the legislator who would interfere with their freedom to contract, for example, for the labor of children, which we described as the freedom of children to sell their labor advantageously. Adult labor banding together to arrange terms of its own sale was felt to be a public enemy. Every age has its fetish; the medicine man who could exorcise the evil spirit in stone and bush was not a more privileged character than his successor at whose touch prosperity sprang out of the earth, at whose word the mysterious economic forces which might in their wrath prove so destructive, bowed and became kind.

Make a few individuals the embodiment of a national purpose that has long existed, unconscious and unquestioned, give them as you inevitably do in such a case the utmost freedom that is possible on this earth, let them be limited enough mentally so that they are blind to any other possible purpose; do all these things and you produce great men. It was an age of great men, Rockefellers, Carnegies, Morgans, Hills, Ryans, Harrimans, and a host of others, richer in personalities than any other period of American life except that which produced Washington, Hamilton, Franklin, Jefferson, and Marshall. They were the flowering of the whole pioneer civilization.

One hundred and fifty years of freedom has produced few free men. Perhaps these were all. They may not have been free intellectually. Charles Francis Adams writes of their kind: "I have known, and known tolerably well, a good many successful men, – 'big' financially, men famous during the last half century; and a less interesting crowd I do not care to encounter. Not one that I have ever known would I care to meet again, nor is one of them associated in my mind with the idea of humor, thought, or refinement."

Never mind. They were free in all the essential ways. The men of whom Adams wrote had no such sense of their limitations as he expressed. Only an Adams would then have had it, and the Adamses were not what M. Galtier of Le Temps suggested when, hastily absorbing the American spirit at Washington, he said to me: "I am reading The Education of Henry Adams: He was what you would call a typical American, was he not?"

An Adams, even Charles Francis Adams, writing of that time, was untypical enough, to have missed the point, which was not whether these men "'big' financially" were interesting, witty, thoughtful, or refined, but whether they were free. And they were; they were so sure of themselves, and public opinion was so sure of them, that they concentrated on the one great aim of that simple day, and did not waste themselves upon non-essentials like "humor, thought, or refinement."

I have a theory that we are wrong in ascribing the poverty of American literature and statesmanship to the richness of our business life. "All our best and ablest minds went into commerce," we say. We flatter ourselves. Mr. Carnegie, born in the days of Elizabeth, might not have been Shakespeare. Mr. Harriman was perhaps, after all, no mute Milton, Mr. Morgan no Michaelangelo.

These brave spirits developed in business not so much perhaps because of the national urge to "conquer a continent" as because in business, enjoying the immunity it then did, they found the utmost opportunity for self-expression, the one great measure of freedom which this free country afforded. A jealous public guarded their divine right from impious hands. They believed in themselves. The people believed in them. So the flowering of the pioneer age came, in such a race of men as are not on the earth today, and the rule of business reached its climax.

It was an autumn flowering, rich and golden like the Indian summer of New England culture, a sign that a cycle was run. Adams sniffing from the transcendental heights of Boston wrote: "a race of mere money-getters and traders." Remember the sneers in our cocksure press of those days at the "culture" of Boston? Boston has had its revenge. The words "mere money-getters" bit in. There were other objects in life beside pioneering the industrial opportunities of a whole continent just brought together into commercial unity. Mr. Morgan began to buy art. Mr. Carnegie began to buy libraries and started authorship himself. The men "'big' financially" began to look over their shoulders and see the shadows – as we all do now – where they a little before kept their eyes straight forward and saw the one clear vision, the truth, such as it was, that made them free.

I have traced that element in the American political consciousness, government by business, to its highest moment.