In truth, the free trade fanaticism, which today distinguishes the sect of economists, is not understandable, aside from the extraordinary efforts by which it tries to propagate the commerce of money and to multiply credit institutions.
What then, once more, is credit? It is, answers the theory, a release of engaged value, which permits the making of this same value, which before was sluggish, circulable; or, to speak a language more simple: credit is the advance made by a capitalist, against a deposit of values of difficult exchange, of the merchandise the most susceptible of being exchanged, in consequence the most precious of all money, money which holds in suspense all exchangeable values, and without which they would themselves be struck down by the interdiction; money which measures, dominates and subordinates all other products; money with which alone one discharges one’s debts and frees oneself from one’s obligations; money which assures nations, as well as individuals, well being and independence; money, finally, that not only is power, but liberty, equality, property, everything.
This is what the human species, by an unanimous consent, has understood; that which the economists know better than anyone, but what they never have ceased combating with a comical stubbornness, to sustain I know not what fantasy of liberalism in contradiction to their most loudly confessed principles. Credit was invented to assist labour, to bring into the hands of the worker the instrument that destroys him, money: and they proceed from there to maintain that, among manufacturing nations, the advantage of money in exchange is nothing; but that it is insignificant in balancing their accounts in merchandise or specie: that it is low prices alone that they have to consider!
But if it is true that, in international commerce, the precious metals have lost their preponderance, this means that, in international commerce, all values have reached the same degree of determination, and like money, are equally acceptable; in other words, that the law of exchange is found, and labour is organised, among the various nations. Then, let them formulate this law; let them explain that organisation, and, instead of talking of credit and forging new chains for the labouring class, let them teach, by an application of the principle of international equilibrium, all the manufacturers who ruin themselves because they are not exchanging, teach those workers, who die of hunger because they have no work, how their products, how the work of their hands are values which they can use for their consumption, as well as if they were bank-bills or money. What! this principle which, following the economists, rules the trade of nations, is inapplicable to private industry! How is this? Why? Some reasons, some proofs, in the name of God.
[…]
CHAPTER XI
EIGHTH EPOCH—PROPERTY
§II CAUSES OF THE ESTABLISHMENT OF PROPERTY
PROPERTY OCCUPIES THE eighth place in the chain of economic contradictions; this point is the first one that we have to establish.
It is proven that the origin of property cannot be related to first-occupancy nor to labour. The first of these opinions is nothing more than a vicious cycle, in which the phenomenon is given as an explanation of the very phenomenon; the second is eminently subversive concerning property, because considering labour as supreme condition, it is impossible for property to establish itself. As for the theory that makes property go back to an act of collective will, it has the defect of remaining silent about the motivations of this will: well, these are the very motivations that we needed to know.
However, although all these theories, considered separately, always end in contradiction, it is certain that each of them possess a parcel of truth and it can be supposed that if, instead of isolating them, all three were studied in connection and synthetically, the real theory would be discovered in them, that is, the reason for the existence of property.
Yes, then, property begins, or to put it better it manifests itself by a sovereign, effective occupation, which excludes every idea of participation and community [communauté]; yes, again, that occupation, in its legitimate and authentic form, is nothing other than work: otherwise, how could society have consented to concede and to respect property? Yes, finally, society has desired property, and all the legislations in the world have only been made for it.
Property has been established by occupation, which is to say by labour: it is necessary to recall it often, not for the preservation of property, but for the instruction of the workers. Labour seated in power, it must produce, by the evolution of its laws, property; just as it has given rise to the separation of industries, then the hierarchy of workers, then competition, monopoly, police, etc. All these antinomies are also successive positions of labour, mileposts planted by it on the eternal route, and destined to formulate, by their synthetic joining, the true right of men. But fact is not right: property, the natural product of occupation and labour, was a principle of anticipation and invasion; thus it needed to be recognised and legitimated by society: these two elements, occupation by labour and legislative sanction, that the jurists have mistakenly separated in their commentaries, are joined together to constitute property. Now, it is a question for us of knowing the providential motives of that concession, what role it enjoys in the economic system: such will be the object of this section.
Let us prove first that in order to establish property, social consent was necessary.
As long as property is not recognised and legitimated by the State, it remains an extra-social fact; it is in the same position as the child, who is only supposed to become a member of the family, the city and the Church, by the recognition of the father, the inscription in the register of the civil state, and the ceremony of baptism. In the absence of these formalities, the child is as we believe the animals to be: it is a useless member, a base and servile soul, unworthy of consideration; it is a bastard. Thus the social recognition was necessary to property, and all property implies a primitive community. Without that recognition, property remains simple occupation, and can be contested by the first comer.
“The right to a thing,” said Kant, “is the right of private use of a thing with regard to which I am in common possession (primitive or subsequent) with all other men: for that common possession is the unique condition under which I could forbid to any other possessor the private use of the thing; because without the supposition of that possession, it would be impossible to conceive how I, though not presently possessor of the thing, can be wronged by those who possess it and who use it.—My individual or unilateral will cannot oblige anyone else to forbid themselves the use of a thing, if they were not so obliged before. Thus, the use can only be forbidden by wills joined in a common possession. If it was not thus, one would need to conceive a right in a thing, as if it was an obligation towards me, and from which would be derived in the last analysis the right against every possessor of that thing: a truly absurd idea.”420
Thus, according to Kant, the right of property, that is the legitimacy of occupation, proceeds from the consent of the State, which originally implies common possession. It cannot, said Kant, be otherwise. Thus, every time that the proprietor dares to oppose his right to the State, the State, reminding the proprietor of the convention, can always end the dispute with this ultimatum: Either recognise my sovereignty, and submit that which the public interest demands, or I will declare that your property has ceased to be placed under the safeguard of the laws, and withdraw from you my protection.
It follows from this that in the mind of the legislator the institution of property, like those of credit, commerce and monopoly, has been made with an aim of equilibrium, which first places property among the elements of organisation, and the first among the general means of constituting values. “The right to a thing...” said Kant, “is the right to private use of a thing with regard to which I am in common possession (primitive or subsequent) with all other men”: by virtue of that principle, every man deprived of property can and must appeal for it to the community, guardian of the rights of all; from which it results, as one has said, that in the sight of Providence, conditions must
be equal.
This is what Kant, as well as Reid, clearly understood and expressed in the following passage: “One asks now how far does the faculty to take possession of a resource [fonds] extend?—As far as the faculty to have it in its power, which is as far the one who appropriates it can defend it. As if the resource said: If you cannot defend me, no more can you command me.”421
I am not however sure whether or not this passage must be understood as applying to possession prior to property. For, Kant adds, the acquisition is only peremptory in society; in the state of nature, it is only provisory. One could then conclude from this that, in the thought of Kant, acquisition, once become peremptory by social consent, can increase indefinitely under social protection: something which could not take place in the state of nature, where the individual alone defends his property.
Whichever it is, it at least follows from the principle of Kant, that in the state of nature, acquisition extends for each family to all that which it can defend, which is to say all that it can cultivate; or better, it is equal to a fraction of the cultivatable surface divided by the number of families: since, if acquisition surpasses this quotient, it immediately encounters more enemies than defenders. Now, as in the state of nature that acquisition, thus limited, is only provisory, the State, by putting an end to the provision, has wanted to put an end to the reciprocal hostility of the acquirers, by rendering their acquisitions peremptory. Equality has thus been the secret thought, the key object of the legislator, in the constitution of property. In this system, the only reasonable thing, the only one admissible, is the property of my neighbour which is the guarantee of my property. I no longer say with the moneylender, possideo quia possideo; I say with the philosopher, possideo quia possides.422
We will see by what follows that equality by property is every bit as chimerical as equality by credit, monopoly, competition, or any other economic category; and that in this regard the providential genius, while gathering from property the most precious fruits and the most unexpected, has not been less deceived in his hope, and is bound to the impossible. Property contains neither more nor less truth than all the moments which preceded it in the economic evolution; like them, it contributes, in equal proportion, to the development of well-being and to the increase of misery; it is not the form of order, it must change and disappear with order. Thus the systems of the philosophers on certainty, after having enriched logic with their glimpses, resolve themselves and disappear in the conclusions of common sense.
But in the end the thought which has presided at the establishment of property has been good: thus we have to seek what justifies that establishment, how property serves wealth, and what are the positive and determinant reasons that have caused it.
First, let us recall the general character of the economic movement.
The first period aimed to inaugurate labour on the earth by the separation of industries, to bring an end to the inhospitable character of nature, to pull man out of his original poverty, and to convert his inert faculties into positive and active faculties, which will be for him so many instruments of happiness. As in the creation of the universe the infinite force was divided, so, in order to create society, the providential genius divided labour. By that division, equality beginning to manifest itself, no longer as identity in plurality, but as equivalence in variety, the social organism is constituted in principle, the germ has received the vivifying principle, and the collective man comes into existence.
But the division of labour supposes some generalised functions and some divided functions: from the inequality of conditions among the workers, raising some up and bringing others low; and from the first period, industrial antagonism replaces primitive community.
All the subsequent evolutions tend at once, on the one hand to bring about the equilibrium of the faculties, and on the other always to develop industry and goodwill. We have seen how, on the contrary, the providential effort led always to an equal and divergent progress of poverty and wealth, of incapacity and science. In the second period, appears the selfish and injurious division, capital and wage-labour; in the third, the evil is increased by commercial war; in the fourth, it is concentrated and generalised by monopoly; in the fifth, it receives the consecration of the State. International commerce and credit come in their turn to give a new development to the antagonism. Later, the fiction of the productivity of capital becoming, by the power of opinion, nearly a reality, a new peril threatens society, the negation of labour itself by the overflow of capital. It is in this moment, and from this extreme situation, that property rises theoretically: and such is the transition that we must understand well.
Up to the present, if one set aside the ulterior aim of economic evolution, and were to consider it only in itself, all that society does, it does alternately for and against monopoly. Monopoly has been the pivot around which the various economic elements move and circulate. However, despite the necessity of its existence, despite the efforts without number that it has made for its development, despite the authority of the universal consent that admits it, monopoly is still only provisional; it is supposed, as Kant said, to endure only as long as the occupant is able to use and defend it. This is why sometimes it ends by right at death, as in the permanent, but non-venal duties [fonctions]; sometimes it is reduced to a limited time, as in patents; sometimes it is lost by non-exercise, which has given rise to the theories of prescription, such as annual possession, still in use among the Arabs. At other times, monopoly is revocable at the will of the sovereign, as in the permission to build on a military field, etc. Thus monopoly is only a form without reality; the monopoly pertains to the man, but it does not include the materials: it is properly the exclusive privilege to produce and sell; it is still not the alienation of the instruments of labour, the alienation of the land. Monopoly is a type of tenant farming which only interests the man through the consideration of profit. The monopolist holds to no industry, to no instrument of labour, to no residence: he is cosmopolitan and omni-functional; it matters little to him, provided that he gains; his soul is not chained to a point on the horizon, to a particle of matter. His existence remains vague, as long as society, which has conferred on him the monopoly as a means of fortune, does not make that monopoly a necessity for his life.
Now, monopoly, so precarious by itself, exposed to all the incursions, all the trials of competition, tormented by the State, pressured by credit, not sticking at all in the heart of the monopolist; monopoly tends incessantly, under the action of agiotage, to objectify itself; so that humanity, delivered constantly to the financial storm by the general disengagement of capital, is at risk of detaching itself from even labour and to retrogress in its march.
Indeed, what was monopoly before the establishment of credit, before the reign of the bank? A privilege of gain, not a right of sovereignty; a privilege on the product, much more than a privilege on the instrument. The monopolist remained a foreigner on the land that he inhabited, but that he did not really possess; he could very well multiply his exploitations, enlarge his manufactures, join lands together: he was always a steward, rather than a master; he did not imprint his character on these things; they were not made in his image; he did not love them for themselves, but only for the values that it should render to him; in a word, he did not want monopoly as an end, but as a means.
After the development of institutions of credit, the condition of monopoly is still worse.
The producers, that it is a question of associating, have become totally incapable of association; they have lost the taste and the spirit of labour: they are gamblers. To the fanaticism for competition, they have joined the frenzies of roulette. The bankocracy has changed their character and their ideas. Once they lived together as masters and waged workers, vassals and suzerains: now they are no longer known as anything but borrowers and usurers, winners and losers. Labour has given way before credit; real value vanishes before fictitious value, production before speculation [agiotage]. Earth, capital, t
alent, labour even, if we somewhere still encounter labour, serves as a stake. One no longer concerns oneself with privileges, monopolies, public functions, industry; one no longer asks labour for wealth, one awaits a roll of the dice. Credit, the theory said, needs a fixed basis; and this is exactly what credit has put in motion. It rests, it added, only on some mortgages, and it makes those mortgages run. It seeks guarantees; and despite the theory that wants to see guarantees only in realities, the pledge of credit is always the man, since it is the man who puts the pledge to work, and without the man the pledge would be absolutely ineffective and null, it happens that the man no longer holds to the realities, with the guarantee of the man the pledge disappears, and credit remains that which it had vainly boasted not to be, a fiction.
Credit, in a word, by dint of releasing capital, has finishing by releasing man himself from society and from nature. In that universal idealism, man no longer keeps to the soil; he is suspended in the air by an invisible power. The land is covered with people, some basking in opulence, the others hideous from poverty, and it is possessed by no one. It no longer has anything but masters who despise it, and some serfs who hate it: for they do not cultivate it for themselves, but for a holder of coupons423 that no one knows, that they never see, who will perhaps pass on that land without having laid eyes on it, without doubting that it is his. The holder of the land, that is the owner of the registered annuity, resembles the merchant of bric-a-brac: he has in his portfolio some smallholdings, some pastures, some rich harvests, some excellent vineyards; what does it matter to him! He is ready to give it all up for ten centimes of increase: in the evening he will part with his goods, as in the morning he had received them, without love and without regret.
Property Is Theft! Page 32