Showing posts with label medieval guilds. Show all posts
Showing posts with label medieval guilds. Show all posts

Saturday, August 04, 2007

Distributism, State Power and Papal Teachings

by Thomas Storck


Last spring an interesting dialog took place in the pages of The University Concourse on the subject of distributism, which is the economic system elaborated in the first half of the twentieth century by such Catholic writers as G. K. Chesterton, Hilaire Belloc and Fr. Vincent McNabb. Its most complete exposition was in Belloc's book, The Restoration of Property (1936). In the latest round of this controversy there seem to be several points which are especially at issue. The first is the question of the role of the government in promoting a just economy, in particular, a distributist economy. For example, Dr. Kevin Schmiesing, in his article in the May 4 Concourse, advocates what he calls a "free economy," in which a just society would be brought about by "moral suasion in a call for simpler living, more generous aid and care for the impoverished and marginalized, and more voluntary efforts to ensure that all people participate in the productive process through ownership of property," and in which the government would have little role. And Mr. Philip Harold similarly warns against the "temptation" to rely overmuch on governmental power to implement a program of economic justice. Therefore we should first look at this question of the role of the state and of state power in creating and maintaining a just economic order.

THE ENTIRE ENCYCLICAL TRADITION

It would be easy for me and for the others who have taken part in this discussion to state our opinions about the degree and kind of governmental intervention in the economy which is justified. But in doing so we would too often be simply asserting our opinions. I suggest that the correct method of procedure for us as Catholics is to look to the entire encyclical tradition, that is, the tradition of modern papal social teaching beginning with Rerum Novarum in 1891 and embodied in encyclicals and other documents down to the present day. There we will find an interrelated body of doctrine addressing this very question, as well as other questions about the relationship between the moral law and the economy. In my previous articles I quoted several passages from these encyclicals, but I cannot recommend too highly to the readers of this journal that they return to the sources and read these seminal documents in their entirety, especially Rerum Novarum of Leo XIII, Quadragesimo Anno of Pius XI, and the present Holy Father's three social encyclicals, Laborem Exercens, Sollicitudo Rei Socialis and Centesimus Annus. Nor is it the case, as some have asserted, that somehow Centesimus represents the overturning of all the previous documents--as if the Church had suddenly disavowed all that she formerly taught. Centesimus is firmly in the same tradition as its predecessors.

NEITHER MINIMIZING NOR MAXIMIZING STATE POWER

Suffice it to say that the general attitude taken by these documents toward the role of the state in the economy is one of neither minimizing nor maximizing state power. Certainly the principle of subsidiarity, which Dr. Schmiesing cites and which Pius XI formulated in Quadragesimo Anno--that the state should not assume tasks best left to lower groups--is of fundamental importance, but that same Pontiff in the same encyclical notes that the economic proposals of the moderate socialists of his day (1931) "often strikingly approach the just demands of Christian social reformers" (QA, no. 113) and that "certain forms of property must be reserved to the State, since they carry with them an opportunity of domination too great to be left to private individuals without injury to the community at large" (QA, no. 114).

I cite these remarks simply to show that the papal, and perforce the Catholic, approach to state power in the economy cannot be reduced to Dr. Schmiesing's principle of "less rather than more state intervention." But I do not want to start a war of papal quotations. I would prefer that all our readers look at the encyclicals themselves, and I trust to their good sense and open minds in doing so.

NO NEUTRALITY

Moreover, there is another aspect of the question of the government and the economy that we should keep in mind. This is that, no matter what a government does or does not do with regard to the economy, it is taking a stand. Just as a state that passed no laws condemning abortion could not take refuge in the sophistry that it was neutral on the subject, so a state that takes a hands off attitude toward the economy is taking a position on the economy just as much as the most statist regulatory regime that one can imagine. It is impossible for a government not to affect the economy, either by its laws or its lack of laws. There is no such thing as simply "allowing the economy to be itself," for the economy, like all the other creations of mankind, must have some framework in which to function. The question is, shall this framework be one that we try to make (as much as we can) a Christian framework, or one that follows the deistic philosophy of the eighteenth century?

Another point that was raised in our discussions concerns what are often called "occupational groups" or "guilds." These entities are not only an integral part of the distributist program, but have figured very largely in papal teaching. In Quadragesimo Anno Pius XI devoted a good deal of space to describing how these groups would function, and his successor, Pius XII, continued to champion them. Nor does John Paul II neglect them, as when, in Laborem Exercens, he refers to "intermediate bodies with economic, social and cultural purposes; they would be bodies enjoying real autonomy with regard to the public powers, pursuing their specific aims in honest collaboration with each other and in subordination to the demands of the common good...." (no. 14)

Anyone acquainted with the papal social tradition would immediately see here a reference to occupational groups.

However, I still must answer Dr. Schmiesing's question: Would the decisions of these groups be backed by the power of the government or would they be merely voluntary organizations such as the American Bar Association?

Pius XI contrasts the occupational groups with free associations such as the ABA, and pointedly notes that he hopes that a flourishing of free associations will "prepare the way and...do their part toward the realization of those more ideal vocational fellowships or 'groups' which We have mentioned" (QA, no. 87). Generally Catholic commentators on this question see the occupational groups as analogous to the medieval guild on this point, in that in order to practice a certain trade or profession one was required to be a member of the appropriate guild and abide by the decisions of the guild. And the power of the state stood ready to enforce guild decisions, if necessary. However, the government did not set guild policy nor appoint guild officials, who were elected by the members. This sort of arrangement often puzzles those accustomed to capitalism. They understand purely private entities and they understand the government. But the notion of some sort of intermediate body, with a real role to play in bringing order to the economy, yet not a department of the government is strange to them. But before concluding that such bodies are unnecessary or harmful to the economy, I would simply urge my readers to remember that the tradition of economic thought with which we Americans are most familiar stems ultimately from the deistic tradition of Adam Smith, a bitter enemy of the Catholic Church incidentally.(1)

Space unfortunately prevents me from going into detail about the role of occupational groups in the economy, but we must remember that they are not an example of state power, but of the natural grouping of those working to further the same endeavor.

ABUSES OF CORPORATE POWER

Dr. Schmiesing cites various examples of the abuse of state power. I deplore them as much as he does. But it would be as easy to bring up examples of the abuses of private corporate power, beginning with Rerum Novarum, which speaks of "a small number of very rich men [who] have been able to lay upon the masses of the poor a yoke little better than slavery itself" (RN, no. 2). Moreover, as I set out at more length in my first article (January 28), distributism is not a statist system. Just because it rejects the unrestrained competition of capitalism (something also rejected again and again by the Popes), does not mean that it makes use of the government to regulate the economy. Distributism calls for the wide ownership of private property, with the laws (for example, the tax code) designed to discourage the concentration of property in the hands of a few. It is hard to find anything in the Catholic tradition which is against such arrangements.

THE ROLE OF LAW

A third and very important point that is at issue in our controversy concerns the role of the law as coercive agent. Both Dr. Schmiesing and Mr. Harold warn that using the laws to promote economic justice must tend to become a violation of human freedom. And in the first place, I repeat that any attempt to establish a Christian economic order must be preceeded and accompanied by a renewed preaching of the Gospel. Men's hearts must turn to God if the society is to turn to God. But this does not mean that the law can never have a punitive effect. One last quotation from Pius XI in which he refers to the laissez-faire philosophy of the nineteenth century will illustrate what I mean.

A stern insistence on the moral law, enforced with vigor by civil authority, could have dispelled or perhaps averted these enormous evils. This, however, was too often lamentably wanting. For at the time when the new social order was beginning, the doctrines of rationalism had already taken firm hold of large numbers, and an economic teaching alien to the true moral law had soon arisen, whence it followed that free rein was given to human avarice.(2)

In most matters we recognize that the law is both teacher and restrainer of evil doers. Thus we want to prevent abortion even if we cannot convert the abortionist. Our Catholic ancestors applied the same philosophy to the economic order, and however much they strove to convert those who injured the common good by their greed, they also sought to restrain them precisely to protect the most economically vulnerable members of the society.

EFFECTS ON FAMILIES

Probably the biggest reason that Americans today have difficulty thinking about making fundamental changes in the economy is that we are convinced that our economy is doing so well. Every day we are bombarded with positive economic statistics from rising Dow Jones averages to increased GDP or worker productivity. But one way to put this in perspective is to ask, How many families can afford to live on the income of the father alone? If we accept that a normal family life allows a mother to devote herself full-time to the care and education of her children, what can we say about an economy that makes a normal family life so difficult for so many? Despite the statistics, I do not think such an economy can be regarded as healthy.

My plea and hope is that Catholics will allow themselves to ask some fundamental questions about the economy which go beyond the usual assumptions which we receive from the culture around us. Then we can look at what our Catholic tradition has said and perhaps find some surprising truths, but truths which are nonetheless part of the salvific message of Jesus Christ, as held and taught by his teaching Church until the end of time.


(c) Thomas Storck. All Rights Reserved.

Thomas Storck's latest book is Christendom and the West : Essays on Culture, Society and History. He is a contributing editor of The New Oxford Review and a member of the editorial board of The Chesterton Review. This article first appeared in the University Concourse, Franciscan University.


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Footnotes:

1 Adam Smith described the Catholic Church during the Middle Ages as "the most formidable combination that ever was formed against the...liberty, reason, and happiness of mankind...." The Wealth of Nations, bk. 5, chap. 1, pt. 3, art. 3.
2 Quadragesimo Anno, no. 133

© The University Concourse, October 3, 2000



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Saturday, February 24, 2007

Industrialism and Guilds

by Arthur Penty



In a recent article in the Labour Monthly, Mr. W. Mellor criticizes National Guildsmen, saying that "they began as compromisers and they have been compromising ever since." The criticism is valid; National Guild theory was a compromise. It was a compromise between Medievalism and Industrialism, and the movement has been compromising ever since, because it was committed to a theory that attempted to reconcile irreconcilables.

The truth of this can best be demonstrated by following the fortunes of the National Guilds League, into whose hands the development of National Guild theory passed, once its organization was formed. The National Guilds League, though it borrowed Medieval principles, was modern in that it did not question the permanence and stability of our Industrial system. But having been born of a compromise it was unstable and found itself at the mercy of circumstances. The choice before the movement was whether it would become more modern or more Medieval. But upon this vital issue it could never make up its mind, and so it happened that it came to travel in opposite directions. Its theory became more Medieval and its policy more modernist and revolutionary. Let me explain.

As originally formulated, the National Guild theory was that of a number of highly-centralized Guilds working in conjunction with the State. Nowadays National Guilds are not interpreted by the League as highly-centralized Guilds, but as a federation of local Guilds, while the idea of the sovereignty of the State has so far disappeared that it no longer finds a place in the basis of the League. Thus when the League was founded its objects were stated to be:

"The abolition of the Wage System and the establishment of self-government in industry through a system of National Guilds working in conjunction with the State."

Nowadays its objects are declared to be:

"The abolition of the Wage System and the establishment by the workers of self-government in industry through a democratic system of National Guilds, working in conjunction with other functional organizations in the Community."

As explained by Mr. Cole at the Conference when the change was made, this new basis was recommended as a formula which would allow members who held different opinions as to the position of the State in a future society to remain in the League and work together for immediate practical ends. Those who believed that the State should be abolished entirely, and those who believed that the State, instead of being the all- powerful Leviathan it is to-day, would in the future be stripped of its illegitimate functions and be reduced to the position of one power among a plurality of powers, were both allowed to interpret the basis in their own way. No one apparently believed any longer in the State's absolute sovereignty.

These changes are significant. But the greatest change of all is in the attitude of the League towards Industrialism, which, from being regarded as a thing of permanence and stability, is nowadays looked upon as being on the verge of collapse. When we remember that the reason which led the movement to reject the idea of restoring the Medieval type of Guilds in favour of the idea of establishing National Guilds turned on this very issue; the advocates of Medieval Guilds, affirming that Industrialism was doomed to dissolution and decay, while the advocates of National Guilds denied it, we begin to feel that there is not much left of the National Guild position, and the fact that every departure from the original position has been in the direction of a return to the principles of Medieval social organization is a striking testimony to their truth and universality.

Though, as I have shown, the transformation of thought that took place within the National Guild Movement was in a Medievalist direction, it was, unfortunately, not consciously Medieval, but came about as a consequence of the pressure of events. But a time came when another group of forces of a very different character began to exercise an influence over it, and it was then that the central weakness of the movement came into the light of day, for it was then seen that the movement stood for nothing sufficiently fundamental to enable it to steer its course successfully between the Scylla and Charybdis of modern politics. By the end of 1919 dissatisfaction was being freely expressed with the policy of encroaching control, which hitherto had been the policy of the movement. This dissatisfaction coincided with the spread of Communist propaganda in this country, which turned the thought of the more ardent spirits in the movement from a belief in reform by constitutional means to a belief in force. Thus it came about that the trend of the movement towards Medievalism was brought abruptly to an end, and the movement became a house divided against itself, in which state of mind it has remained ever since, for neither the Revolutionaries nor the Medievalists within the League are in a sufficiently strong position to force a decision, while the centre was too hesitant to throw its weight in either one direction or the other, failing to understand that no compromise was possible between opposed beliefs. Since then the League has been waning in power, though owing to the successful organization of the Building Guilds the Guild idea has been booming in the country, and Guild literature and speakers have been in greater demand than ever.

Now the underlying cause of this failure of the National Guild Movement is that it has never been honest with itself over the question of Industrialism. When at the beginning of its career it believed Industrialism to be a thing of permanence and stability, it was in a more or less defensible position. But when it came to the conclusion that our Industrial System was breaking up, the justification of its general policy disappeared, for what could be the use of seeking to superimpose Guilds over present-day Industrial activities if those activities did not possess within themselves the elements of stability? Clearly this crisis could have been met in only one way, by broadening the basis on which the movement rested, by frankly recognizing that the problem of restoring Guilds is only one among many problems that will have to be faced before the social problem can be solved. Yet on this more general fundamental problem of society the National Guild Movement has absolutely nothing to say. On the contrary, it continues the Socialist tradition of thought of assuming that the only social problems are finally those of organization and ownership. For Guildsmen, when they speak of changing the system, mean little more than changing the ownership of the system. Hence, the real issue with them is finally the problem of how power may be attained. But it is obvious that the attainment of power and a capacity to use it for the public advantage are two entirely different things, and what reason is there to suppose that if the Labour or the Communist Party succeeded to power, they would not be just as much at the mercy of economic forces of society as capitalists are to-day? Frankly I can see none, for neither Socialists, Communists or Labourites recognize the existence of the problem of men and machines that lies at the centre of the economic problem. And because they do not recognize this problem, it is a certainty that they would be at its mercy. They would be as impotent in the face of the present economic morass as the present Government, differing with them only to the extent that they would at least attempt to be more generous and equitable in their attitude towards the workers.

If we compare Socialist thought to-day with the Socialist thought that penetrated the Chartist Movement, we may say that while current thought is of a far more practical order, with more precision in detail, there is not the same grasp of the main essentials of the problem that confronts society as in Chartist times. To explain my meaning, let us consider the different meanings attached to the proposal to abolish the Wage System in Chartist times and in our own, for it is our link with the past. As expounded by the National Guild Movement, the Wage System is defined as being a state of things in which labour is bought and sold as a commodity in the same way as other commodities are bought and sold, and its abolition is the demand that labour no longer be bought and sold in this way. As such it is really a demand for the regularization, stabilization and moralization of the wage relationship and for industrial maintenance during times of unemployment. But when Socialists of Chartist times demanded the abolition of the Wage System they meant what they said. They meant that the system of distributing purchasing power by means of payment for work done was incompatible with the unrestricted use of machinery. They saw that if machinery is to reduce labour to a minimum then it follows that some other system of distributing purchasing power must be substituted for the present one of payment for work done. For the Wage System breaks down entirely when machinery becomes automatic. Hence it was they demanded that purchasing power should no longer be dependent on the receipt of wages, and it was as a means of creating a new social order, in which it would be possible to distribute purchasing power independent of payment for work done, that they came to demand the abolition of the private ownership of land and capital, and the means of production and exchange. The one was the necessary corollary of the other.

But Socialists and Guildsmen to-day have not that same intellectual grip of the general situation as had their predecessors of Chartist times. Their ideas are not organically related to any central idea. On the contrary, they believe in a number of separate ideas, more or less loosely related, but which are not part of an organic whole. In the Report on Fabian Policy, the abolition of the Wage System is rejected as an impracticable proposal, which in the sense in which it was understood by the Chartists is perfectly true. It is impracticable. But apparently Fabians had no suspicion whatsoever that the idea was logically related to the problem of machinery, which was the reason for the Chartist advocacy of the doctrine (equally impracticable) of the abolition of private property in land, capital, and the means of production and exchange, which doctrine the Fabians retained, in sublime unconsciousness of its origin, basing their propaganda on an accessory idea, and rejecting the proposal which gave it at least a logical validity. Guildsmen, like the Fabians, were so completely unaware that there was any connection between the Chartist demand for the abolition of the Wage System and the problem of machinery, that when they revived the phrase they came to interpret it as meaning the regularization, stabilization and moralization of the wage relationship, entirely unaware of the fact that such a policy is impossible so long as the unrestricted use of machinery is permitted. But when truth is turned out of the front door, it has a way of coming in at the back, and the incompatibility of the wage relationship with the prevailing system of industry, which the early Socialists rightly connected with the unrestricted use of machinery, has in these latter days come to be connected with the problem of credit, and in connection with the Douglas-New Age Scheme, the demand is made for "dividends for all" on the assumption that the dividend is to be considered the successor of the wage.

Now this idea is sufficiently plausible to gain converts among people who do not see clearly what such a suggestion involves. Such people object to the idea of wages for several reasons. In the first place, because the receiving of wages seems to imply a servile status; in the next because on the wage basis, artists and poets, scholars and others who do not do work that is of immediate economic value get left out in the cold; and lastly, because the distribution of purchasing power on the basis of payment for work done does not suggest to many minds a sense of the corporate responsibility of society for the welfare of its individual members.

Now when we come to examine these objections we find they are based upon a confusion of thought. Wages, it is true, are apt nowadays to connote a servile condition, but this is not because a system of payment for work done necessarily involves any degradation, but because under modern conditions it so happens that most people who do any useful work are in a servile condition. Under the Medieval Guild system, the journeymen and apprentices received what were, technically speaking, wages; but we do not associate such payments as they received with the evils of the Wage System because, though wages existed under the Guilds, they did not imply the brutal and inhuman relationship which wages do to-day, for labour was not then a commodity, the price of which was determined by the competition of the markets, but was paid for at a fixed rate determined by the Guilds, of which both masters and men were alike members. Moreover, the journeyman only remained a wage- earner during the earlier part of his life. He could look forward to a day when, as a matter of course, he would set up in business on his own account, for as there was a limit placed to the number of assistants any master could employ, opportunities for advancement were open to all who desired to use them. The Wage System therefore did not in those days present itself as an evil in the way it does to-day. On the contrary, it is the growth of large organizations, on a basis of the subdivision of labour and the unrestricted use of machinery, that has created the evils which we associate with the Wage System to-day; for under such conditions, those personal relationships which humanize life tend to disappear, and their place is taken by a cash-nexus divorced from all sentiment and personal regard. It is such conditions that make the Wage System to-day so brutal, but if the use of machinery were restricted and the subdivision of labour abolished as we demand, that disturbing element which makes wages at once so uncertain, brutal and servile would be removed.

The Medieval Guilds accepted payment for work done as being the normal thing in society, but that did not preclude them from giving aid to the sick and unfortunate or of treating exceptional circumstances in exceptional ways. But owing to the fact that under industrialism all the normal human relationships have become degraded, people are always seeking to make the exception into the rule. Thus because under our existing economic system work that is of no immediate economic value cannot command proper remuneration, they repudiate the normal thing that payment should be for work done, in order that some provision shall be made for the exceptional. But surely this is irrational, for there is no reason why a system of payment should be uniform. It was in the past frankly recognized that certain kinds of activities depended upon patronage, and this should be recognized to-day. But again there is the same prejudice against patronage as against wages, because like all right and human things, it lends itself to abuse. The Church and Guilds in the Middle Ages were the patrons of learning and the arts, and if restored they would become such again in the future. It is because of the decline of the one and the disappearance of the other that learning and the arts are in such difficulties, but it is vain to suppose that people can ever be led to make the exception into the rule. For if they have not sufficient interest in these things as to be willing to act as their patrons, there is no prospect whatsoever that they could be induced to turn the economic system upside down in order that such exceptional activities may be provided for.

And the instinct of the people would be right, for if payment in the future is not to be on a basis of work done, then we must have industrial conscription, for how otherwise is the necessary work of the community to get done? And I don't see how the artist or poet is going to fare advantageously under such conditions. The Church and Guilds might be persuaded to discriminate in their favour, but I cannot see it happening under a national system of industrial conscription.

Further, it is necessary to consider how such a proposition as "dividends for all" would in practice be applied. Reformers may have visions of a wonderful system of industry under which all existing evils would be abolished and each individual have complete and absolute liberty, but in practice the popularization of such an idea could have no other effect than to create a popular vested interest in the maintenance of the existing system of industry with all its abuses. For you cannot abolish the Black Country and draw dividends on it, since the two ideas are mutually exclusive.

But is there anything practical at all in this proposal of "dividends for all?" It is obvious that it can only be theoretically justified on the assumption that the present system has within itself the elements of permanence and stability. If the wage system were the only thing that was breaking down, then the plea that purchasing power must in the future be distributed by means of dividends rather than wages would at any rate be plausible. But the fact is that simultaneously with the breakdown of the wage system, there is going on the breakdown of every other institution in modern society. Politics, religion, art, industry, technical skill, the institution of the family, and all other social traditions are in a state of disintegration. As it is apparent that all these problems are organically related to each other, it is evidently impossible to effect change or reform in any one of them apart from dealing with the problem of machinery that lies behind them all. Thus, to go no further, "dividends for all" is only possible on the assumption that our financial and industrial system can be preserved.

This brings me to the central idea of the Douglas-New Age Scheme which we must now proceed to consider. Mr. Douglas sees, as most people who think do, that the deadlock that has overtaken industry is no ordinary trade depression that will gradually disappear before the normal operations of demand and supply as previous depressions have done. On the contrary, he maintains that the present situation is the logical outcome of the pursuit of the policy of Maximum Production on a basis of bank credit. Our system of credit, he says, upsets the balance between supply and demand by reason of the fact that whereas credits are given for increasing production, they are not given for increasing consumption. That Mr. Douglas has put his finger on the immediate cause of the present deadlock, apart from the economic confusion resulting from the war and the stupidities of the Peace Treaty, is not, I think, to be denied. There can be no doubt that the wholesale issue of credit by the banks to individuals, on the basis of "to him that hath shall be given" is the immediate cause of the present financial deadlock, for it is impossible in the long run to offer facilities for the increase of production without giving corresponding opportunities for the increase of consumption, without upsetting the balance between demand and supply. But while we may agree that the wholesale issue of credit is the immediate cause of the deadlock, it is clearly not the ultimate cause, as we shall find out later. But meanwhile Mr. Douglas proposes to correct this discrepancy between demand and supply by selling goods below cost, the selling price of any commodity bearing the same ratio to its actual cost as the total National Consumption of all descriptions of commodities does to the National Production of Credit, while the Government is called upon to reimburse to the producers of any commodity the difference between their total cost incurred and their total price received by means of treasury notes, such notes being debited, as now, to the National Credit Account.

Now the first and most obvious objection to this Scheme is that such a wholesale issue of paper money would depreciate the currency. But Douglasites are unwilling to admit this. They urge that the fixation of prices which finds a place in the Scheme would be a sufficient safeguard against this. And when we object that to make such a measure effective it would be necessary to fix prices simultaneously in all industries, since if the Scheme were applied gradually and prices fixed below cost in one industry and not in the others, the prices of commodities that were unfixed would rise to restore the balance, they reply that the rise of prices in non-regulated industries would rapidly force on the application of the scheme to other industries. But it won't do. All economic theories based upon the theory of enlightened selfishness promise such results. The adoption of Free Trade by this country, it used to be argued, would force its adoption on other countries, while the theory of unfettered individualism was justified on the grounds that while as producer the individual might suffer, he would nevertheless benefit by the cheapening of all he had to buy. But somehow or other all prophecies based upon theories of enlightened selfishness produce results the very contrary of what was intended. And this theory would certainly be no exception to the rule, for in these days of international markets the unit to be considered is not this country but the world. Under such circumstances the proposition is unthinkable. Those who believe in it only find it thinkable because they love to live in a world of abstractions divorced from reality. The only remedy for such mental states is to translate economic abstractions into concrete terms and to think always in the terms of actual wealth--of bread, clothes, buildings, ships, fuel, furniture, etc. Tested in this way, such abstractions as production and consumption will appear as the most ambiguous of categories that conceal essential differences. Thus they will include everything from food to armaments, things that support life and things that destroy it, and yet we are asked to believe that the economic balance of production can at any time be restored by selling goods below cost. But what if there are things which people do not want at any price--armaments for instance? How would selling below cost help the situation? The whole thing is absurd; it is an illusion that owes its origin to a fatal habit of divorcing the problem of money from the problem of things. It is the reductio ad absurdum of our financial system.

I said that the problem of credit might, apart from the economic consequences of the War and the Peace, be regarded as the immediate cause of the present deadlock, but that it was not the ultimate cause. In support of this contention I would draw attention to the fact that the present deadlock was foreseen by Marx. It finds a place in the Communist Manifesto (1847). And yet, though Marx foresaw this deadlock, there is not in the whole of his writings anything about the problems of credit and high finance (which is not surprising, for the problem is largely the creation of the Limited Liability Companies Act of 1862). On the contrary, he foresaw it as the logical outcome of the investment and reinvestment of surplus wealth for further increase (theory of surplus value). If, therefore, Marx foresaw this deadlock seventy-five years ago, long before this problem of credit had made its appearance, does it not prove that the problem is much more fundamental than the problem of credit? Nay, does not the problem of credit begin to appear as an effect, as a symptom of the disease rather than its cause, and will it not therefore be necessary to dig deeper than Mr. Douglas has done if a solution is to be found?

But while Marx saw that the investment and reinvestment of surplus wealth for further increase would in the long run produce an economic deadlock, he did not regard this practice as the ultimate cause, for he saw that behind the problem of finance was the problem of machinery. He saw that the capitalists were not masters of their own house, inasmuch as they were at the mercy of their machines. The progress of invention was driving capitalism along the road it was travelling, and would in the end spell its destruction. So far I can go with him. But beyond this point we part company, for there was something he did not see. He did not see that the process of industrial development that he traced was not only destructive of capitalism, but of the very fabric of society, while in the long run the unrestricted use of machinery and capitalist development would bring into existence a civilization so complex that the human mind would be unable to comprehend all its multitudinous interconnections. And because of this, because modern civilization makes demands on our alertness and many-sidedness with which our wits and sympathies cannot cope, it tends to degenerate into anarchy. This consideration, apart from any other, should be sufficient to convince us that there is no solution of our problems apart from a return to simpler conditions of life, such as would reduce the complexity of our relationships to terms commensurate with the human understanding.

Looking at the problem from this point of view, our industrial system no longer appears as the foundation upon which a more highly developed civilization can be superimposed, but as a blind alley, from which we must retrace our steps or perish. But how may this be done? This is the sphinx riddle that confronts us, and it is by no means easy to answer. Perhaps it cannot be answered completely by any individual. But of this much we can be certain; that any change in the direction of our activities must be preceded by a change in the heart and mind of the people. That such a change is actually taking place I think is undoubted. But it has not yet proceeded sufficiently far to become practical. The popular mind is thoroughly disillusionized over the idea of progress, but it is still largely under the spell of machinery, and not until that spell is broken will our minds be sufficiently liberated to think and act clearly. The first step, therefore, is to break this spell by means of propaganda. If we could do this, we should be able to see clearer, for the popularization and acceptance of an idea will, if there is any truth in it, tend to create the circumstances necessary to its transformation into the terms of practical politics.

It is a philosophical truth that no synthesis is ever complete, since in every synthesis there is always something left over that becomes the starting-point of the next synthesis. To translate this idea into the terms of the social problem, we may say that the army of unemployed is the something left over from the industrial synthesis, and therefore in our efforts to reconstruct society we must begin with it. Marx recognized this, and he proposed to use them for the purpose of overthrowing the capitalist system by a proletarian revolution. But recognizing, as we do, that our industrial system is in a state of disintegration, the problem that presents itself to us is not how the industrial and capitalist system can be captured or overthrown, but how a new civilization can be built out of its ruins, and therefore we shall attempt to deal with the unemployed as individual men rather than in the mass. Accepting the position that our industrial system is doomed, we should set to work to turn them into agriculturists and handicraftsmen. There should be no more difficulty about this, if it were undertaken in a public way, than there was about turning civilians into soldiers during the war. It is entirely a question of will and determination. Hitherto our efforts to do anything with the unemployed have been the last word in futility, but that is because the only idea behind the various schemes for dealing with them has been to make work, to mark time, as it were, until trade revived. Such an aim inspires nobody. The unemployed themselves are conscious of the futility of the work on which they are employed, and this sense of futility is demoralizing in the last degree. But if the fact that our industrial system is doomed was frankly faced, and men were given a craft or agricultural training to enable them to take their place in the new social order, their work would come to have meaning for them, and this would make all the difference in the world, for men can only do their best when they are dominated by a real motive.

By such means a new society could be built within the existing one, and as our industrial civilization falls to pieces, this new society would gradually take its place. There should be no difficulty about this, if the principle were frankly recognized that at every stage in its development the new society should be protected. The foundations of such a new society would rest, as all stable societies rest, upon agriculture, and to effect such a revival as we anticipate, agriculture would need to be protected from any foreign competition, and prices and wages would have to be fixed. There would, moreover, have to be a complete overhauling of our land system, the reform of which, it is to be presumed, will become practical politics as the situation tends to become desperate. Upon this base of agriculture the new industries in which the subdivision of labour was abolished and machinery controlled would rest. Such industries would need, in the first instance, to be protected against the competition of industries in which the existing abuses were retained, which could be done by putting a tax upon machinery and the subdivision of labour. After a time, as this new society began to develop an organized life of its own, it would no longer stand in need of protection from outside industries, for the saving of cost that would be effected by the elimination of cross-distribution and of overhead charges would more than compensate for the increased cost of its production. Still, prices and wages should remain fixed, and every industry be under the regulation of Guilds to prevent capitalism growing up again within the new society, which it certainly would if freedom of bargaining were permitted. There would be no practical difficulty about reconstruction upon such lines, once the idea was popularly understood. It is impossible to graft the principles we stand for on to modern society if taken separately. But handled together, as part of a large and comprehensive scheme, and nursed in the early stages, there is no reason why they should not be acted upon. We may not be able to return to simpler conditions of society individually, but there is no reason why we should not do so collectively.

Meanwhile external conditions are co-operating to force upon us an agricultural policy. The conclusion becomes irresistible that the days of our industrial supremacy are over. It was an accidental and temporary and not a permanent circumstance that gave colour to the theory, so popular in the first half of the last century, that we were destined to become the workshop of the world. This economic myth owed its origin to the fact that this country was the first to embark upon an industrial career in the modern sense. We had certain natural advantages, an abundance of mineral wealth, and an unrivalled geographical position, which naturally constituted us a centre for trade and commerce, while securing us from the fear of invasion. But the great fact, compared with which all others pale into insignificance, was that we were the first to use steam-power and machinery. It was this fact that enabled our goods to penetrate into every part of our world, which built up huge credits in every country abroad, and led to the enormous expansion of our mercantile marine, while constituting us the merchants and bankers of the world.

But it is apparent that this virtual monopoly could not last indefinitely. It could last no longer than we retained our monopoly of machinery, since, other things being equal, it would always be cheaper to produce goods near the markets and where raw material is found than at a distance from them, and therefore it has happened that one by one other nations adopted machine production and our monopoly came to be challenged. Before the war we were holding our own with difficulty. Lancashire was losing her cotton markets, because of the competition of America, India, Japan and Brazil. Australia had begun to produce her own woollen goods, while in many markets, for all kinds of goods, we suffered from the competition of Germany, Japan and America. But it was the war that completed the change for us by transforming the world conditions. It shattered the fabric of our commerce, industry and finance. Deprived of their accustomed supplies from us, many of our former customers were driven to begin producing all kinds of things for themselves, and as these new manufactures are carried on near to where the raw materials are found or produced, it is manifest that these markets must gradually slip from our hands. We cannot hope in the future to export such large quantities of manufactured goods to Australia, Canada, South America and elsewhere as hitherto, while the tendency is for other nations to carry their own goods in their own ships. Meanwhile, in order to finance the war, we were compelled to dispose of most of our foreign investments. Thus, in one way or other, there is not the money coming into this country that there was before the war, and our industries will not be able to provide work for such numbers as hitherto. Not being able to sell goods to the food-producing nations, we shall soon be without the money to pay for the food we must import to keep our population alive--a fact that is brought home to us by the constant falling of the rate of exchange with food-producing nations.

That is the immediate practical problem that confronts us to-day. If anything could demonstrate the folly of a nation allowing itself to become dependent upon other nations for its supply of food, and building up national industries which were dependent upon foreign supplies of raw material, the situation in which we find ourselves to-day should do so. We have allowed ourselves to drift into an impossible situation, and things must steadily go from bad to worse until agriculture is revived, for as the countries upon which we have been accustomed to rely for a supply of food are beginning to produce their own industrial wares, it follows that our exports to them will tend to become a steadily diminishing quantity, and therefore the only way to meet the situation is for us to take measures to produce as much food as possible for ourselves by the revival of agriculture.

Whether or not sufficient food can be produced in these islands to satisfy our requirements is a debatable question. But supposing it cannot, then it follows that if our foreign trade shrinks to the point at which we cannot sell sufficient goods to food-producing nations to buy the food required to support our surplus population, there can be no remedy apart from emigration, for no tinkering with the machinery of distribution can distribute more food than we can grow and import.

Thus it comes about that the trend of events is forcing upon us the Medieval policy which sought to make each country as self-contained as possible. Though at the moment the loss of our markets is an inconvenience which it is impossible to exaggerate and adds to our perplexity, yet I am persuaded that in the long run it will prove to be a blessing, for so long as our industries were dependent upon foreign markets it was impossible to initiate really drastic reform, for under such circumstances the factors that really governed the problem were outside of our control. The modification of a tariff, or a war, the discovery of some new raw material or some other such event in some remote corner of the world, would dislocate the labour of millions at home, while all the time our fortunes remained in the hands of capitalist adventurers, for they alone could find markets for our surplus produce. To break with this tradition has hitherto been the great obstacle in the path of reform, for it was hopeless to attempt to bring order into an economic system that ramified out into every quarter of the globe. But the obstacle that refused to yield to reason is being removed by the force of circumstances, and a situation is being created in which the social problem may be solved if we have the will and the energy. For with a revived agriculture, with the people back again on the land, a foundation will be laid which will enable a social fabric to be rebuilt that will be permanent and stable.

If it be laid down as a maxim that the first principle of a normal civilization is that it be as self-contained as possible, the second undoubtedly is that it should in no sense be living on capital, but arrange its production in such a way as largely to reproduce itself. Before the age of machines, the inroads made by man on irreplaceable material were moderate and offered no menace to posterity, the store of mineral wealth in the world remained almost intact. But our industrial methods of production use up material at an alarming pace. The machine has an insatiable appetite for fuel and minerals of all kinds, the supply of which is limited. The easily accessible sources of supply of raw materials are becoming exhausted, and the necessity of getting hold of new sources of supply was one of the causes of the war. These considerations, together with the steady and progressive decline in the quality of production, the decay of technical skill, the atrophy of the individual and the social and economic chaos that has followed everywhere in the wake of the machine, lead us inevitably to the conclusion that reaction must come, for it is simply impossible for civilization to continue on the road it is travelling. Such a reaction, by leading to the revival of pre-mechanical standards of thought and industry, will remove the greatest obstacle of all to the solution of our problems.

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Friday, February 09, 2007

The Guilds



Guilds were voluntary associations for religious, social, and commercial purposes. These associations, which attained their highest development among the Teutonic nations, especially the English, during the Middle Ages, were of four kinds:

Religious guilds
Frith guilds
Merchant guilds
Craft guilds


The word itself, less commonly, but more correctly, written gild, was derived from the Anglo-Saxon gildan meaning "to pay", whence came the noun gegilda, "the subscribing member of a guild". In its origin the word guild is found in the sense of "idol" and also of "sacrifice", which has led some writers to connect the origin of the guilds with the sacrificial assemblies and banquets of the heathen Germanic tribes. Brentano, the first to investigate the question thoroughly, associating these facts with the importance of family relationship among Teutonic nations, considers that the guild in its earliest form was developed from the family, and that the spirit of association, being congenial to Christianity, was so fostered by the Church that the institution and development of the guilds progressed rapidly. This theory finds more favour with recent scholars than the attempts to trace the guilds back to the Roman collegia. The connexion or identity of the guilds with the Carlovingian geldoniœ or confratriœ cannot be ascertained, for lack of definite information about these latter institutions, which were discouraged by the legislation of Charlemagne.

IN ENGLAND

The earliest traces of guilds in England are found in the laws of Ina in the seventh century. These guilds were formed for religious and social purposes and were voluntary in character. Subsequent enactments down to the time of Athelstan (925-940) show that they soon developed into frith guilds or peace guilds, associations with a corporate responsibility for the good conduct of their members and their mutual liability. Very frequently, as in the case of London in early times, the guild law came to be the law of the town. The main objects of these guilds was the preservation of peace, right, and liberty. Religious observances also formed an important part of guild-life, and the members assisted one another both in spiritual and temporal necessities. The oldest extant charter of a guild dates from the reign of Canute, and from this we learn that a certain Orcy presented a guild-hall (gegyld-halle) to the gyldschipe of Abbotsbury in Dorset, and that the members were associated in almsgiving, care of the sick, burial of the dead, and in providing Masses for the souls of deceased members. The social side of the guild is shown in the annual feast for which provision is made. In the "Dooms of London" we find the same religious and social practices described, with the addition of certain advantageous commercial arrangements, such as the establishment of a kind of insurance-fund against losses, and the furnishing of assistance in the capture of thieves. These provisions, however, are characteristic rather of the merchant guilds which grew up during the latter half of the eleventh century.

MERCHANT GUILDS

These differed from their predecessors, the religious or frith guilds, by being established primarily for the purpose of obtaining and maintaining the privilege of carrying on trade. Having secured this privilege the guilds guarded their monopoly jealously. Everywhere the right to buy and sell articles of food seems to have been left free, but every other branch of trade was regulated by the merchant guild or hanse, as it was often called. The first positive mention of a merchant guild, the "enighten on Cantwareberig of ceapmannegilde", occurs during the primacy of St. Anselm (1093-1109). From the time of Henry I the charters of successive sovereigns bear witness to the existence of merchant guilds in the principal towns. These charters, such as those granted to Bristol, Carlisle, Durham, Lincoln, Oxford, Salisbury, and Southampton, were of the utmost importance to the guilds as they secured to them the right and power of enforcing the guild regulations with the sanction of law. For this reason Glanvill, the lawyer, writing in the twelfth century, regards the guild merchant as identical with the commune, that is, the body of citizens with rights of municipal self-government (Ashley, op. cit., inf., 72). From the fact that out of one hundred and sixty towns which were represented in the parliaments of Edward I, ninety-two are certainly known to have possessed a merchant guild, the conclusion is drawn that a guild was to be found in every town of any size, including some that were not much more than villages.

The organization of the merchant guilds is known from the constitutions or guild rolls which have survived. These documents are only four in number, but fortunately refer to towns in four different parts of England. They are the guild statutes of Berwick and of Southampton, and the guild rolls for Leicester and Totnes (Ashley, p. 67). From these we learn that each guild was presided over by one or two aldermen assisted by two or four wardens or échevins. These officials presided over the meetings of the society and administered its funds and estates. They were assisted by a council of twelve or twenty-four members. The guildsmen were originally the actual burgesses, those inhabitants who held land within the town boundaries, whether they were merchants or holders of agricultural land; but in course of time rights of membership passed by inheritance and even by purchase. Thus the eldest sons of guildsmen were admitted free as of right, while the younger sons paid a smaller fee than others. The guildsmen could sell their rights, and heiresses might exercise their membership either in person or through their husbands or sons.

The merchant guilds possessed extensive powers, including the control and monopoly of all the trades in the town, which involved the power of fining all traders who were not members of the guild for illicit trading, and of inflicting punishment for all breaches of honesty or offences against the regulations of the guild. They also had liberty of trading in other towns and of protecting their guildsmen wherever they were trading. They exercised supervision over the quality of goods sold, and prevented strangers from directly or indirectly buying or selling to the injury of the guild. Besides these commercial advantages the guild entered largely into the life of all its members. The guildsmen took their part as a corporate body in all religious celebrations in the town, organized festivities, provided for sick or impoverished brethren, undertook the care of their orphan children, and provided for Masses and dirges for deceased members. As time went on the merchant guilds became more exclusive, and when the rise of manufactures in the twelfth century caused an increase in the number of craftsmen, it was natural that these should organize on their own account and form their own guilds.

CRAFT GUILDS

Seeing that the merchant guilds had become identical with the municipality, the craftsmen, ever increasing in numbers, struggled to break down the trading monopoly of the merchant guilds and to win for themselves the right of supervision over their own body. The weavers and fullers were the first crafts to obtain royal recognition of their guilds, and by 1130 they had guilds established in London, Lincoln, and Oxford. Little by little through the next two centuries they broke down the power of the merchant guilds, which received their death-blow by the statute of Edward III which in 1335 allowed foreign merchants to trade freely in England. In the system of craft guilds the administration lay in the hands of wardens, bailiffs, or masters, while for admission a long apprenticeship was necessary. Like the merchant guilds, the craft guilds cared for the interests both spiritual and temporal of their members, providing old age and sick pensions, pensions for widows, and burial funds. The master craftsman was an independent producer, needing little or no capital, and employing journeymen and apprentices who hoped in time to become master craftsmen themselves. Thus there was no "working class" as such, and no conflict between capital and labour. At the end of the reign of Edward III there were in London forty-eight companies, a number which later on rose to sixty. Besides the merchant and craft guilds, the religious and social guilds continued to exist through the Middle Ages, being largely in the nature of confraternities. At the Reformation these were all suppressed as superstitious foundations. The trade guilds survived as corporations or companies, such as the twelve great companies of London which still maintain a corporate existence for charitable and social purposes, though they have ceased to have close connexions with the crafts, the names of which they bear. The merchant guild of Preston also survives in a similar state, but such bodies have no real significance. The Reformation shook their constitution, while the altered industrial and social conditions finally deprived them of the power and influence they had possessed in the Middle Ages.

IN FLANDERS AND FRANCE

The word gilde, or ghilde, is but one of many terms used formerly in France and in the Low Countries to denote what the more modern word corporation stands for, viz., an association among men of the same community or profession. Gilde, métier, métier juré, confrérie, nation, maîtrises et jurandes, and other like appellations, all essentially express this idea of association, at the same time laying stress on some particular feature of it. The word gilde, however, is the first to appear and we meet it very early in the history of western continental Europe. A capitulary of 779 says: "Let no one dare to take the oath by which people are wont to form guilds. Whatever may be the conditions which have been agreed upon, let no one bind himself by oaths concerning the payment of contributions in case of fire or shipwreck." This prohibition appears several times in the laws enacted under the Carlovingian emperors; nevertheless the guilds continued to exist, at least in the northern part of the empire. The records of the provincial councils held in those districts also show that the guilds were a matter of no small concern for the ecclesiastical authorities; for a long time the Church was bent on extirpating from their organization a number of objectionable features which made them a menace to morals.

In France and the Low Countries a guild was originally a sort of fraternity for common support, protection, and amusement. The members paid each a certain contribution to the common fund; they pledged their word to give one another assistance; they took care of the children of the deceased members and had Masses offered up for the repose of their souls; they celebrated the patron saint's day with great festivities in which the poor had their share. These and other features of the guilds did not, of course, appear all at the same time. Like most human institutions they had a modest beginning, and they developed according to circumstances. Again, it should be noted that they do not everywhere present one and the same type. Some are mainly social, others emphasize the religious side of the organization, while, later on, in the merchant and craft guilds, it is the economic aspect which becomes predominant. Before speaking of the latter a word should be said of the origin of the guilds in the two countries with which we are concerned here. This has been a much debated question. Some scholars consider the guilds as the product in Christian soil, of the German instinct of association, and they would assign for their remotest origin the banquets (convivia) so common among the Teutons and Scandinavians. Others claim that they were nothing else than the Roman corporations (collegia) established in Western Europe under Roman sway and reconstructed on Christian principles after the great invasions. That the Roman colleges of artisans flourished in southern and central Gaul has been established beyond doubt by the discovery of numerous inscriptions at Nice, Nîmes, Narbonne, Lyons, and other cities. It is not likely that the Barbarian invasion broke entirely the Roman traditions in countries where the influence of Rome had been felt so deeply, and one is warranted in saying that in southern and central France the origin of the guilds was to a certain extent Roman. Such an assertion, however, could hardly be made for northern France and still less for the Low Countries. There is no evidence to show that the Roman collegia ever attained great importance in these regions. At any rate, the dominion of Rome was established there much later than in the South and was never so deep-rooted. Roman institutions and customs had scarcely had time to take root before the German invasion, and they must have given way very easily under the pressure of the conquerors, whose numbers, rapidly increasing, soon insured to them a preponderating influence.

But whether a legacy of Roman civilization or a native institution of the young Teutonic race, the guild would never have attained its wonderful development had not the Church taken it under its tutelage and infused into it the vivifying spirit of Christian charity. Furthermore, it is certain that a large number of guilds owed their existence solely to the aspirations which gave rise to chivalry and induced thousands of men to join the monastic communities. Towards the end of the tenth century, with the greater security following the Norman invasions, there was an increase of trade on the Continent. In each of the large towns, such as Rouen, Paris, Bruges, Arras, Saint-Omer, there soon arose a corporation which was known as the Merchant Guild and which was, in some instances at least, a development of an older association. None but the brethren of the corporation were allowed to trade in any article except food. Whether the communes (chartered towns) of France and the Low Countries had their origin in the Merchant Guild is a moot question, although it seems certain that the merchants were at least instrumental in the granting of charters by princes, for the right of managing its own affairs, conferred on the town, practically meant that its government fell into the hands of the trading class. At the origin of the Merchant Guild, any townsman might become a member of the corporation on payment of a stated fee, but with the increase of their wealth, the traders showed more and more a tendency to shut out the poorer classes from their association. The latter classes, however, were not without organization; they had their own corporations (the craft guilds), most of which seem to have been constituted in the twelfth and thirteenth centuries. Each one of these craft guilds, like the merchant guilds, had its charter and statutes, its patron saint, its banner and altar, its hall, its feast day, and its place in the religious processions and public festivities. There were in the craft guilds three classes of persons: the apprentices, or learners (apprendre, "to learn"), the journeymen (journée, "day"), or men hired to work by the day, and the masters or employers.

The apprentice had to remain from three to ten years in a condition of entire dependence under a master, in order to be qualified to exercise his trade as a journeyman. Before a master could engage an apprentice, he had to satisfy the officers of the guild of the soundness of his moral character. He was to treat the boy as he would his own child, and was held responsible not only for his professional, but also for his moral, education. On completing his apprenticeship, the young artisan became a journeyman (compagnon); at least, such was the rule from the fourteenth century onward. To become a master, he must have some means and pass an examination before the elders. At the head of the corporation was a board of trustees composed of two or more deans (doyens, syndics) assisted by a secretary, a treasurer, and six or more jurymen (jurés, assesseurs, trouveurs, prud'hommes). These officers were elected from among the masters and entrusted with the management of the guild's interests, the care of its orphans, the defence of its privileges, and the protection of its members. It was more especially the duty of the jurymen to enforce the statutes of the guild bearing on the relations between employer and employee, engagement of apprentices and journeymen, salaries, hours of work, holidays, etc. They could punish or even expel from the corporation any member whose conduct incurred their disapprobation.

From this strong organization, all pervaded with the spirit of Christianity, there resulted great benefits for the artisan. His work, which was well regulated and broken by many holidays, did not tax his strength too severely; the good life he was induced to live saved him from need, while his rights and interests were protected against the vexations of the local or central government. Still more noteworthy was the brotherly character of the relations between employee and employer, to which the great cities of the Middle Ages were indebted for the social peace which they enjoyed for many centuries. This alone would outweigh what disadvantages may have been attached to this organization of labour. The guilds of the Low Countries, otherwise similar to the French guilds, differed from them in one respect: political importance. The latter never gained enough influence to free themselves from the condition of utter dependence in which they had been placed by the kings, but in the Low Countries several circumstances combined which gave the labouring classes a power they could not have in France. Of these circumstances, the most important were the wealth of the cities, the large number of artisans, and their organization into military brotherhoods (confréries militaires) which formed a regular militia, capable of holding its own against the feudal armies, as was illustrated many times in the history of Flanders and Liège.

As this article has to deal mainly with the guilds in the Middle Ages, but little can be said of the corporations of artists, which, in France and the Low Countries, were few and had not much importance before the sixteenth century. The explanation of this tardy growth is found, at least partly, in the fact that, during the greater part of the Middle Ages, the fine arts remained within the Church or under its supervision; even in the thirteenth century the number of laymen engaged in these professions was still very small, as is shown in "Le Livre des métiers de Paris", or book of the statutes of the Paris craft guilds, drawn up by Etienne Boileau under the direction of St. Louis. Two other classes of guilds which deserve a special mention are the basoches (see Vol. VI, p. 193) and the temporary or permanent corporations for the exhibition of religious and other plays. The best known of the latter class of guilds is "La Confrérie de la Passion", established in 1402. Its Mystères form the link which unites the French tragedy of the seventeenth century with the dramatic literature of the Middle Ages.

After the end of the fifteenth century, under the despotic rule of the French kings, the guilds ceased to be a means of protection for a majority of their members — the journeymen — who formed associations of their own, regardless of all professional and even religious distinctions. Their privileges became a means of filling the royal coffers at the expense of the employers; the latter retaliated on the public, all the more readily that they had no competition to fear. By the middle of the eighteenth century the outcry against the guilds was general in France. In 1776 Turgot, then prime minister, planned their suppression, but his fall gave them some respite. In 1791 they were abolished by the Constituent Assembly. But remnants of these corporations are still found in many French and Belgian customs, as, for instance, the fees to be paid by notaries, solicitors, sheriff's officers, when they enter office. In the first half of the nineteenth century, several attempts were made in France to partially restore the craft guilds, but without success. During the last thirty years, however, there has been a Catholic movement in France and Belgium to counteract the evil effects of socialism by forming associations of employers and employed.

IN GERMANY

The first well-known German guild is that of the watermen of Worms, its charter (Zunftbrief) dating from 1106; the shoemakers of Würzburg received theirs in 1112; the weavers of Cologne, in 1149, the shoemakers of Magdeburg, in 1158. But it was not until the thirteenth century that the German guilds became numerous and important. Zunft, Innung, Genossenschaft, Brüderschaft, Gesellschaft, are the terms used in Germany to designate these associations. Here, as in Italy and the Low Countries, the most conspicuous guilds were those connected with the manufacture of linen and wool. In Ulm, for instance, towards the end of the fifteenth century, there were so many linen-weavers that the number of pieces of linen prepared in one year amounted at one time to 200,000. In the year 1466 there were 743 master weavers in Augsburg (Herberger, "Augsburg, und seine frühere Industrie", p. 46). In the large cities, the linen- and the wool-weavers formed two distinct corporations, and the wool-weavers again were divided into two classes: the makers of fine Flemish or Italian goods, and the makers of the coarser homespun materials.

Other important guilds were those of the tanners and the furriers; the latter included the shoemakers, the tailors, the glove-makers, and the stocking-knitters. In the shoemaker's trade there was a sharp distinction between the Neumeister, who made new shoes, the cobbler, and the slipper maker. The most striking example of an elaborate classification according to craft is found in the metal-workers: the farriers, knife-makers, locksmiths, chain-forgers, nail-makers, often formed separate and distinct corporations; the armourers were divided into helmet-makers, escutcheon-makers, harness-makers, harness-polishers, etc. Sometimes they went so far as to have special guilds for each separate article of a suit of armour. This accounts for the remarkable skill and finish seen in the simplest details.

A class of brotherhoods which deserves special mention is that of the guilds of the mining trades, which from an early date were very important in Saxony and Bohemia. "No politician or socialist of modern times", says H. Achenbach (Gemeines Deutsches Bergrecht, I, 69, 109), "can suggest a labour organization which will better accomplish the object of helping the labourer, elevating his position, and maintaining fair relations between the employer and the employed than that of the mining works centuries ago." The statutes of these mining guilds show, indeed, a remarkable care for the well-being of the labourer and the protection of his interests. Hygienic conditions in the mines, ventilation of the pits, precautions against accident, bathing houses, time of labour (eight hours daily — sometimes less), supply of the necessaries of life at fair prices, scale of wages, care of the sick and disabled, etc. — no detail seems to have been lost sight of.

As to their organization, government, and relations with the public or the civil authorities, the German guilds did not substantially differ from those in other European countries. The members were divided into apprentices, journeymen, and masters. At the head of the corporation was a director assisted by several officers. He was the sworn and responsible power of the guild, called the meetings, presided at them, had the right of final decision, managed the property of the guild, led it in case of war. Each guild had its fully equipped court of justice and enjoyed complete independence in all private concerns, but all the guilds were subject to the town council and town authorities, and were obliged to submit their statutes and ordinances to them. In the event of quarrels, either within or between the guilds, the civil authorities exercised the rights of a commercial judge; in conjunction with the guild, they also made regulations for the markets and police arrangements, fixed the prices of wares, organized the supervision of traffic and the protection from fraud or dishonest dealing.

The purchase of raw material was managed by the guild as a body so as to prevent monopoly. Strict regulations protected the rights of every one. There was equality between all the members with regard to the sale of their productions. The protection of purchasers and customers was assured by the city authorities; the guild was held responsible for the quality and quantity of the goods which it brought for sale to the market. In Germany, as elsewhere, however, the most striking feature of the guilds was the close connexion they established between religion and daily life. Labour was conceived by them as the complement of prayer, as the foundation of a well-regulated life. We read in the book "A Christian Admonition": "Let the societies and brotherhoods so regulate their lives according to Christian love in all things that their work may be blessed. Let us work according to God's law, and not for reward, else shall our labour be without blessing and bring evil on our souls." Each guild had its patron saint, who, according to tradition, had practised its particular branch of industry, and whose feast day was celebrated by attending church and by processions; each had its banner, its altar, or chapel in the church, and had Masses offered up for the living and the dead members. The religious observance of Sunday and holy days was commanded by most of the guilds. Whoever worked or made others work on those days, or on Saturday after the vesper bell, or neglected to fast on the days appointed by the Church, incurred a penalty. This union of religion and labour was a strong tie between the members of the guilds, and it was of great assistance in settling peacefully the differences arising between masters and companions.

The guilds were also mutual and benevolent societies; they helped the impoverished and sick members; they took care of the widows and orphans; they remembered the poor outside the society. Many benevolent institutions owed their foundation to some guild, as, for instance, St. Job's Hospital for smallpox patients at Hamburg, which was founded in 1505 by a guild of fishmongers, shopkeepers, and hucksters. There were a large number of these benevolent associations of tradesmen in the Middle Ages; at the close of the fifteenth century there were seventy at Lubeck, eighty at Cologne, and over one hundred at Hamburg.

In connexion with the guilds should be mentioned the workmen's clubs, which were very common at the end of the fifteenth century. So long as the German journeyman remained at work in a city, he belonged to one of these clubs, which supplied for him the place of his family and country. If he fell sick he was not left to public charity, but taken into the family of some master or cared for by his brother members wherever he went he could make himself known by the society's badge or password, and receive help and protection from the local branch of the association to which he belonged. Thus the journeyman was, in the first place, associated with the family of his employer, in whose house he generally lodged and boarded; in the second place, he stood in close relation with his associates of the same age and trade, co-members with him of the society which protected and helped him; finally, he enjoyed special connexion with the Church, because he generally belonged to one of the sodalities which were ordinarily, but not necessarily, a part of the society's organization.

Side by side with the artisans' guilds, there were also merchants' guilds, organized on the same plan as the former, and having similar objects in view with respect to the communal life of their members and their moral and religious well-being. But they differed in their attitude towards trade; for, while the chief object of the artisans' guilds was the protection and improvement of the different trades, the merchants' guilds aimed at securing commercial advantages for their members and obtaining the monopoly of the trade of some country or some particular class of goods. Not alone in the German cities, but also in all foreign countries where German commerce prevailed, corporations of this sort, guilds, or Hansa (the word Hansa has the same signification as guild), had existed from an early date and had obtained recognition, privileges, and rights from the foreign rulers and communities. By degrees these Hansa in foreign countries became banded together in one large association forming an important and rival commercial body in the midst of the native merchants and traders. Such was the case in London, where the merchants who had come from Cologne, Lübeck, Hamburg, and other cities formed an association of German merchants.

To further strengthen their position, the guilds belonging to different foreign cities decided to join in one common association. In England, those of Bristol, York, Ipswich, Norwich, Hull, and other cities were affiliated with the London Hansa, and were each represented there. On the same plan were organized the associations of Novgorod in Russia, of Wisby in the island of Gothland, and the so-called Komtoor of Bruges. The last-named was divided into three branches: one comprising with Lübeck the cities of the Slavonic country and of Saxony; the second, those of Prussia and Westphalia; and the third, those of Gothland, Livonia, and Sweden. This vast corporation, calling itself the Society of German Merchants of the Holy Roman Empire, was the foundation of the general German Hansa, or Hanseatic League, which by degrees embraced all the cities (at one time more than ninety) of Lower Germany, from Riga to the Flemish boundaries, and those in the South as far as the Thuringian forests. This league attained the summit of its power in the fifteenth century, and Dantzic was then universally acknowledged as its most important city; in the year 1481, more than 1100 ships had gone from its harbour to Holland. The ships were divided into flotillas of from thirty to forty craft, each flotilla having armed ships, called Orlogschiffe or Friedenskoggen, attached to it for its protection.

After a time, the Hanseatic League was broken up into separate sections whose centres were Lübeck for the Slavonic country, Cologne for the Rhenish, Brunswick for Saxony, and Dantzic for Prussia and Livonia. The Hansa lasted from the thirteenth to the seventeenth century; its last meeting took place in 1669, and the cities of Lübeck, Bremen, Brunswick, Cologne, Hamburg, and Dantzic were the only ones that had sent representatives. The causes of the ruin of this once so powerful association were the growth of the commerce of Holland and England, the Wars of the League, against Denmark and Sweden in the fifteenth and sixteenth centuries, and the Thirty Years' War, which was so detrimental to German commerce and manufactures. Lübeck, Bremen, and Hamburg are still called the Hanseatic cities.

The history of the German guilds of artists is closely connected with that of the guilds of artisans. For a long time the artists were incorporated in the trade associations, and their organization into independent corporations took place only at the close of the Middle Ages. The architects were probably the first to have their own organization.

In Germany, as in the other countries of Europe, the guilds were compulsory bodies, having the right to regulate trade, under the supervision of the civil authorities; but the system was not injurious in the Middle Ages. It was so only at the close of the sixteenth century, when the guilds became narrowly exclusive with regard to the admission of new members, and were nothing but a mere benefit society for a small number of masters and their associates. The abuses of the German corporations were brought to the attention of the Imperial Government in the diets of 1548, 1577, and 1654, but it was only in the course of the nineteenth century that the guilds were successively abolished in the different States of Germany. In the last twenty-five years, there were enacted in that country a number of laws whose aim was not the re-establishment of the old corporations, which had each its special domain and privileges, but the protection of the labourers, who had been left without organization and defence by the abolition of the guilds.

IN ITALY

"Of all the establishments of Numa", says Plutarch, "no one is more highly prized than his distribution of the people into colleges according to trade and craft. "From these words we should infer that the first well-known Italian corporations date from the seventh century B. C., but some authors, whose contention is founded on a text of Florus, have claimed that Servius Tullius, and not Numa, was the founder of the Roman colleges of artisans (e. g., Heineccius, "De collegiis et corporibus opificum", 138). Whatever may be the truth on this point, it is certain that the collegia opificum existed in the sixth century B. C., because they were incorporated in the constitution of Servius Tullius which remained in force until 241 B. C. There were but few of these corporations in the Republic, but their numbers increased under the emperors; in Rome alone there were in the third century more than thirty colleges, private and public (Theodosian Code, XIII and XIV). The latter were four in number: the navicularii, who supplied Rome with provisions, the bakers, the pork butchers, and the calcis coctores et vectores, who supplied Rome with lime for building. The members of these corporations received a fixed salary from the State.

Among the private colleges were numbered the argentarii, or bankers, the negotiatores vini, or wine merchants, the medici, or physicians, and the professores, or teachers. On the whole it might be said that the collegia were prosperous until the end of the third century B. C., but in the course of the next century they began to show signs of decline. The few privileges they enjoyed had ceased to be a compensation for their responsibilities to the State, and it was only by the most drastic measures that the last emperors succeeded in keeping the artisans in their collegia.

And now arise the questions: What remained of these corporations after the invasions? Is there any connexion between them and the Italian guilds of the thirteenth century? We can only answer this query by conjecture. The period extending from the fifth to the eleventh century is extremely poor in documents; the few annalists of those days have limited their work to a bare enumeration of events and a dry list of dates. Mention is made here and there of the existence of a guild, but we are not told whether these guilds are new associations or the development of an older organization. Since we know, however, that the Roman law was to a large extent incorporated in the codes of the Goths and Lombards, we have good ground to believe that many of the municipal institutions survived the fall of Rome. In support of this view, we have the well-known fact that the Barbarians usually dwelt in the country and left the government of the cities in the hands of the clergy, most of whom, being Italians, were naturally inclined to retain the Roman institutions, all the more readily as a better education enabled them to appreciate their value. All this leads to the conclusion that, in most cities, enough of the old Roman corporation must have been preserved to form the nucleus of a new organization which slowly but steadily developed into the guild of the Middle Ages.

The mercanzia, the earliest well-known type of these guilds, existed in Venice, Genoa, Milan, Verona, Pisa, and elsewhere in the tenth century; it somewhat resembled the merchant guild of Northern Europe, being an association of all the mercantile interests of the community without any professional distinction, but, as the increase of trade which followed the First Crusade brought about an increase of industrial activity, the arts found it more convenient to have an association of their own, and the mercanzia was split into craft guilds. As an example of this evolution, we may take the Roman mercanzia. Although it had been in existence at least since the beginning of the eleventh century, it received its final constitution only in 1285. At that time it was composed of thirteen arts, all united into one common association, but in the course of the following century we see these arts withdrawing successively from the mother guild and forming independent corporations until finally the mercanzia was merely a merchant guild.

The Italian arts were not all placed on the same footing. Some, being more important, had a right of precedence over the others and a larger share of the political rights. This hierarchy varied, of course, from one city to another; in Rome the farmers and drapers came first; in Venice and Genoa, the merchants. In Florence we find the most striking illustration of this type of organization. The arts were divided into major and minor. The former were, in the order of importance, the judges and notaries, the drapers, the bankers, the wool-manufacturers, the physicians and apothecaries, the silk-manufacturers, and the skin-dressers. They formed the popolo grosso, or burgesses, and governed the city with the old feudal families; but in 1282 the latter were deprived of their political rights, and the burgesses were compelled to share the government of Florence with the popolo minuto, or minor arts — the blacksmiths, the bakers, the shoemakers, the carpenters, and the retailers of wine.

In its main lines, the organization of the Italian guilds resembled that of the French guilds. Their members were divided into apprentices, journeymen, and employers. Their life was regulated by an elaborate system of statutes bearing on the professional and religious duties of the brethren, the relations of the corporations as a body with the local government, competition, monopoly, care of the sick, of the orphans, etc. The officers were all elected usually for a term not exceeding six months. At first they were few, but their number increased rapidly with the importance of the guild. One of the most remarkable illustrations of guild government is given us by the Roman corporations. At the head of each one was a cardinal protector, but the real managers were the consuls (sometimes called priori, capitudini). Until the beginning of the fifteenth century they were invested with great judicial power, but after the return of the popes to Rome their functions became merely administrative and their authority was limited by a number of other officers-assessors, procurators, delegates, defensors, secretaries, archivists. The second great officer of the corporation was the camerlingo, or treasurer; at one time his office was even more important than that of the consul, but little by little a large part of his powers went to computors, exactors, taxators, depositors. The proveditor had the custody of the guild's furniture and was to preserve good order in the assemblies; the syndics examined the administration of the officers at the end of their term; the physician and nurses attended the sick members free of charge, and the visitor had to call on those who were in prison. Besides, there were many officers attached to the chapel: vestrymen, churchwardens, chaplains.

Guilds of artists appeared very early in Italy. Sienna, Pisa, Venice seem to have been in the lead. The first of these cities had a corporation of architects and sculptors in 1212; the statutes of the sculptors and stone-cutters of Venice date from 1307; those of the carpenters and cabinet-makers in the same city from 1385. In Rome the guilds of artists were formed relatively late; the sculptors in 1406, the painters in 1478, the goldsmiths in 1509, the masons in 1527. On the whole it is seen that the arts connected with construction were the first to have their own association, then came the goldsmiths, and finally the painters. It often happened that artists were incorporated into trade guilds, as, for instance, the painters of Florence, who still belonged to the grocers' guild in the sixteenth century. The famous "Accademia del Desegno" of that city, one of the first academies of fine arts in Europe, grew out of the "Compagnia di San Luca", a semi-religious, semi-artistic guild. The decline of the Italian guilds began in the sixteenth century and was brought about by the decay of the commerce of the country. They were abolished in Rome by Pius VII in 1807, and by the end of the first half of the nineteenth century they had become a thing of the past in all Italian cities.

IN SPAIN

What has been said of the origin of the guilds in Italy applies to Spain. In no other province (except, perhaps, Southern Gaul) had the inhabitants been influenced more deeply by Roman civilization, and the Visigoths, who settled there in the fifth century, were, of all the Barbarians, those who showed the strongest tendency to retain Roman institutions and customs. Unfortunately, the growth of this neo-Roman civilization was stopped by the Arabian invasion in the eighth century, and in the following 700 years the Christians of Spain, who were bent on the task of wresting their country from the infidels, turned their energies to warfare. Domestic trade fell into the hands of the Jews, foreign trade into those of the Italians, and manufactures existed mostly in cities under Moorish dominion. Religious and military associations were many and powerful, but merchant and craft guilds could not grow on this battlefield.

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Wednesday, February 07, 2007

Medieval and National Guilds

by Arthur Penty



Once it is realized that the Medieval Guilds were organizations that existed primarily for the maintenance of economic justice and equity, and that they broke down, not from any defect inherent in their constitution, but because they were never co- extensive with society, we begin to understand that one of the conditions of getting capitalism into subjection is to make Guild organization co-extensive with society. Yet when we suggest this approach, we are told that any such return to an old method of organization is impossible, inasmuch as the old form of Guild organization is not adapted to the circumstances of modern industry with its vast machinery and large organizations, and we are admonished by sundry critics to abandon our project of restoring the Medieval Guilds, and to work for the establishment of National Guilds, which they tell us are more adapted to the modern conditions.

Now, such advice sounds very plausible, so plausible, in fact, that to most people it must appear as if nothing but sheer personal perversity prevents us from accepting it. Yet this is not the case, since Medieval and National Guilds are not opposed ideas, as is popularly supposed, but complementary ones; while the success of the National Guild Movement in no way excludes or militates against a revival of Guilds of the Medieval type, as will become evident when the position is clearly understood. They are concerned with different things. National Guilds are concerned with the problem of the large modern industry, and it would tend towards the elucidation of the subject if they were called Industrial Guilds rather than National Guilds, which is a misnomer. The advocates of Medieval Guilds, on the contrary, are primarily interested in the crafts, small industries and agriculture, and they are as much concerned to discover how such activities may be restored to their former integrity as they are in bringing them under Guild control. Such being the case, the relative importance which we attach to these two branches of Guild activity depends entirely upon our opinion as to what will be the future of Industrialism. If it is believed, as National Guildsmen did believe, when their theory was first launched, that the future is entirely with the large industry, before whose advance the crafts must eventually disappear, then Medieval Guildsmen will appear as anachronisms. But if, on the contrary, we recognize, as Medieval Guildsmen all along have recognized, and as National Guildsmen have recently come to believe, that our industrial system is a thing altogether abnormal, carrying within itself the seeds of its own destruction, and is even now on the verge of collapse, then the subject begins to wear a different complexion. The Medieval Guildsman will no longer appear as an anachronism, but as a Futurist in the best sense of the word, inasmuch as he is not content to build his house on the sands of the seashore. Such a view of the fate of industrialism in general is not incompatible with the frank recognition of the fact that certain aspects of the system may survive, while, if we do not come to the conclusion that National Guilds have no validity in the future, we at any rate may recognize that in any normal society the area of their activities will be very much circumscribed.

But there is another path of approach. We may approach Medieval Guilds from the point of view of craft organization, or from the point of view of the moral and economic principles that they existed to uphold. If we look at them from the former point of view, their picturesqueness may interest us, though their possible application will appear circumscribed. But if we look at them from the point of view of the moral and economic principles they existed to uphold, we shall come to recognize them as the type and exemplar of all true institutions, inasmuch as they stood for something that has universal validity, and is in no way limited by the details of their organization. From this point of view, the issue between Medieval and National Guilds is not one of drawing a line of demarcation, of defining their respective spheres of influence, nor finally, between the rival claims of centralized and federated or local organization, but between two different conceptions of the purpose of a Guild. Thus the essence of the National Guild idea is the conception of the organization of industry on an entirely self-governing basis, without any admixture of private interests; while the essence of the Medieval Guild idea is that of a court of appeal, whose primary function is that of maintaining a discipline among the members of a particular industry. For remember, the Medieval Guilds did not seek to organize industry, but to control it. They did not seek to supplant the private individual producer by any system of co-operative production. On the contrary, they frankly accepted the principle of the private management of industry, and sought only to superimpose over each industry an organization to regulate it in the same way that professional societies enforce a discipline among their members to-day, with the difference that in addition to upholding a standard of professional conduct the Medieval Guilds were, at their best period, concerned to promote a certain measure of economic equality between their members, in the same way that Trade Unions are to-day. They insisted that all who engaged in any industry should conform to the regulations of the Guild, which fixed prices and rates of wages, regulated apprenticeship and enforced a standard of quality in production, preventing adulteration and bad workmanship, and ordered all other matters appertaining to the conduct of an industry and the personal welfare of its individual members.

Now, what is there to stand in the way of the application of such principles to-day? Though the circumstances of modern industry differ from the circumstances of Medieval industry, yet there is no technical difficulty that stands in the way of the establishment of such control over industry, for the principles to be applied are finally nothing more than the enforcement of moral standards. The only difference between their application under the Medieval Guilds and under our supposed modern Guilds, which aim at the same purpose, would be that, whereas the former exercised control over employers and workers engaged in small workshops owned by small masters, the latter would exercise control over employers and workers engaged in large and small factories and workshops owned by private individuals, limited liability companies and self-governing groups of workers. To make such control effective, it would be necessary to depart from the rules of the Medieval Guilds to the extent that authority would be vested in the whole body of members-- employers and workers--instead of being exclusively in the hands of the masters, as was the case in the Middle Ages. For the typical employer to-day is not a master of his craft, who is jealous of its honour, as was the Medieval employer, but a financier, who is only interested in the profit and loss account, and therefore could not be trusted with final authority. This consideration enforces the conclusion that if any standards of honesty and fair dealing are to be upheld, prices fixed, machinery and other matters necessary to the proper conduct of industry to be regulated, the final authority would have to be vested in the trade as a whole, for only those who suffer from the growth of abuses can be relied on to take measures to suppress them.

In support of this contention, that the obstacle in the path of a restoration of Guilds of the Medieval type is moral rather than technical, attention should be directed to the activities of the Industrial Council of the Building Industry, better known as the Building Trades Parliament, since there are invaluable lessons to be learnt from its experience. This body, which consists of representatives of all Building Trade Employers Federations, and the Trade Unions of England and Scotland, and whose deliberations are watched with close attention by economic students all over the world, had its origin in an attempt to bring disputes in the building trades to an end by removing the causes of suspicion and distrust existing between the employers and the workers. The employers objected to any increase of wages apart from an increase of output, to which the workers in their turn objected. Subsequent negotiations revealed the fact that there were four main factors tending towards a restriction of output. They were (a) Fear of unemployment; (b) Expressed disinclination of many of the operatives to make unrestricted profit for private employers; (c) Lack of interest in the industry evidenced by operatives owing to their non-participation in control; (d) Inefficiency, both managerial and operative.

These obstacles revealed themselves as the crux of the whole difficulty, and frankly facing the situation, the joint committee of employers and operatives set themselves the task of finding ways and means of overcoming them by the promotion of what they rather aptly termed "the team spirit in industry." It resulted in a proposal to organize the Building Industry on a basis of public service. After working for four years on the problem, Majority and Minority Reports were submitted by members of the Management and Costs Committee to the Council at a Conference held in London on November 11 and 12, 1921. The former, which is our immediate concern, divided its proposals into three parts. The first was a scheme with proposals for the regularization of demand, the decasualization of labour, unemployment and holiday pay, superannuation and a minimum system of accountancy and costing. It was recommended for immediate inclusion in the working agreements between the affiliated association of Employers and Trade Unions, without prejudice to the further consideration and discussion of the great question of industrial control, which lies at the centre of the problem of efficient service, and with which the second and third part of the Report deals.

In respect of industrial control, the second part of the Report advanced the proposal that employers and operatives should submit themselves to the control of an organization that would, on the one hand, retain the principle of private management of industry, and on the other hand eliminate entirely the element of profit-making from industry. The means by which this end was to be attained was by guaranteeing salaries to owners, managers, and managing staffs, commensurate with their ability, while allowing a regular rate of interest for the hire of capital, which should be not less favourable than the prevailing rate yielded by debentures in other industries, and by guaranteeing to the operatives standard rates of pay that would ensure a real and satisfactory standard of comfort. The last part of the Majority Report advanced a proposal which was frankly admitted to be an ideal. It was for the organization of a National Guild of Builders, a complete scheme of democratic control, based upon the whole of the personnel of the National Federation of Building Trade Operatives, and other approved organizations of building trade workers, whether administrative, technical, clerical or operative, much on the lines of the Building Guilds.

The Minority Report, which represented the views of a majority of the employers, objected to these proposals for two reasons. Firstly because, as they said, the proposed scheme was a system of which the world has no recorded experience of its having been successfully applied, and therefore they preferred to stand by the present system, because it had persisted in all ages and all countries, and was therefore to be considered as normal; and secondly, because the scheme involved a change in the motive of industry, which they contended was impossible, inasmuch as only the love of gain was capable of supplying a sufficient incentive to industrial undertakings, and therefore industry would suffer demoralization if this motive were removed.

It can occasion no surprise that opposition was forthcoming. Ideas so revolutionary can only become really practical after the lapse of time, after a long propaganda has been undertaken on their behalf, when they have become common property and familiarity brings consent. Hence it was that at the Conference already referred to, a resolution was carried which threw the responsibility for the main decision on the national adherent bodies, while the Management and Costs Committee was asked further to consider and report on the less controversial details. To make a long story short, the matter has been shelved, and it is likely to remain so for an indefinite period, for there can be no doubt as to the fundamental character of the opposition. It first found expression in the debate on the Interim Report (August, 1919), at which I was present, and it was certainly a most instructive debate. It was not a debate between employers and operatives as such, but between two rival conceptions of industry--production for service versus production for gain. The operatives, with a minority of employers on the one side, fighting a majority of employers on the other. The latter group maintained that the only incentive to industrial efficiency is love of gain, and that all classes of the community will be best served by maintaining unhampered our present competitive system of enterprise and industry. The other group as obstinately maintained that the real incentive is the joy of service, and not the love of gain--the creative impulse, not the possessive one. The debate, having taken this turn, was no longer concerned with the details of the scheme. It became a debate on morals, in which appeals were made to the authority of Christianity and Ruskin. I never realized before how far the influence of Ruskin had penetrated. Everybody, employers and operatives alike, appeared to be familiar with his teachings, and he was accepted apparently by both sides as a final court of appeal, though how it came about that employers, who maintained that only the motive of gain could be a sufficient stimulus to industrial efficiency, reconciled their ideas with Ruskin and Christianity is a mystery I will not attempt to explain.

Now, what bearing has all this on the issue of Medieval and National Guilds? Just this: that when representatives of employers and operatives began to consider practical ways and means of organizing a great industry for public service, unhampered by a priori theories of class antagonism, they instinctively proceed along Medieval lines as the line of least resistance, since, apart from the proposal to form a National Guild of Builders on the lines of the Building Guild, which was included in the report as an ideal rather than as a practical measure, the Report is Medieval through and through, inasmuch as the practical proposals advanced frankly accept the principle of the private management of industry, while seeking to superimpose over such private businesses an organization that would regulate it so as to eliminate entirely the motive of profit-making. This is all the more remarkable because the original source of inspiration was more a product of the National Guild than the Medieval Guild propaganda, as is evidenced by the fact in the Majority Report the National Guild, rather than the Medieval Guild, was postulated as an ideal.

This, I feel, was a pity; not only because the great monuments of Gothic architecture were produced by the Medieval Guilds, but because a frank acceptation of the Medieval Guilds as an ideal would have given the reformers a perfectly consistent position, inasmuch as Parts I and II of the Report, which were recommended for immediate adoption, were defensible as steps towards the restoration of Medieval Guilds, but not as steps towards a National Guild, which appears in the Report as an anti-climax. By maintaining a consistent position, they could have put up a much stronger defence against the opposition. For the majority of employers could not then have opposed the scheme on the grounds that it proposed to establish over the building trades a system of organization of which the world has no recorded experience of its having been successfully applied. The great monuments of Medieval architecture could have been cited as proving the contrary, and these, it could have been urged, were just as much the counterpart of the economic order, that obtained under the Medieval Guilds, as the chaotic architecture of to-day is the counterpart of the economic chaos that follows economic individualism.

And there is another lesson that we may learn from the experience of the Building Trades Parliament. It is that behind the problem of organization there is to be found the problem of morals, for men take sides ultimately on moral issues. Economic theories may be the occasion that divides them. But it is the moral issue that finally divides men, for, as we saw, the difference of opinion over the practicability of the proposals of the Building Trades Parliament resolved itself finally into a question of morals: the question as to whether any other motive but that of gain could ever promote industrial efficiency. And here again it is to be observed that a frank acceptance of the Medieval Guilds as an ideal would have strengthened the hands of the reformers, for the issue would no longer have been one of opinion, but of fact.

The moral issue, then, is fundamental. It not only separates those who uphold the present competitive order of society from those who demand the reorganization of society on some corporate or communal basis, but it also underlies the division of opinion among reformers themselves. The scheme of the Building Trades Parliament developed along the lines it did because it was based upon the assumption that the goodwill necessary to put it into operation would be forthcoming. But when such hopes were disappointed, and it became evident that the scheme would not be acceptable to a majority of the employers, a new development took place. The Manchester section of the Operatives Federation seized the opportunity that the housing shortage provided, by setting up a Building Guild Committee, and made an offer to the City Council (Feb., 1920), to build two thousand houses. This action led to the organization of Building Guilds in various parts of the country, of which upwards of a hundred are nowadays (Dec., 1921) in existence, and which we must now proceed to consider.

Now, this new development did not proceed along the lines of the Medieval Guild, but of the National Guild, and this followed naturally from the fact that, as a result of the refusal of the employers to co-operate, their organization had to be based upon the personnel of the local Federations of Building Trade Operatives rather than upon the building industry as a whole. In providing an answer to the contention of the majority employers of the Building Trades Parliament, that only the motive of gain can supply a motive power to industry, the Building Guilds have more than justified their existence, for they have demonstrated beyond a shadow of doubt that an organization in which the workers participate in control promotes efficiency by securing their loyalty and goodwill. But there is no reason to suppose that they will be any more successful than the Building Trades Parliament in effecting the guildization of the building trades as a whole, for their position is precarious in the extreme. They came into existence to execute the Housing schemes of various municipalities, and it is possible that with their completion they may disappear, for there is no denying they are very much at the mercy of circumstances. They are at the mercy of the Government's housing policy, and they may be strangled by the Anti-Waste campaign, while, as it so happens that financial and industrial activities have in every direction reached a deadlock--and a deadlock that will remain until the facts underlying it are frankly faced--the prospects of getting hold of a sufficient quantity of private work to enable them to carry on is doubtful.

If, then, there is no prospect of the Building Guilds being able to effect the guildization of the building trades, there is still less of this principle being able to effect the guildization of our industrial activities as a whole, for no other large industry is as fortunately placed as the building industry for embarking on such an experiment. The Building Guilds were possible because of circumstances peculiar to the building trades. There was, in the first place, the housing shortage, which provided the immediate opportunity. There were labour-controlled municipal councils that were in a position to give them work, while there was the further consideration that the element of fixed capital, so important in other large industries, is, in the building trades, unimportant compared with the charges connected with each particular job, material and labour entailing almost the whole costs in the building. These circumstances made the principle of industrial self- government a fairly simple proposition for the building trade operatives, but it obviously supplies no more precedent for the guildization of other large industries where immense fixed capital is required, and where the market cannot be localized, than the municipal gas and water of Collectivists provided a basis for the nationalization of all industry.

Nevertheless, the influence of the Building Guilds is not going to be ephemeral. If they provide no precedent for the guildization of other large industries, they do apparently for small industries, for a whole crop of small Guilds are coming into existence. There is a Furnishing Guild, a Clothiers Guild, and an Agricultural Guild already in existence; while news reaches us of a Dairy Guild, a Blacksmith's and Farrier's Guild, a Fruit Grower's Guild, a Packing Case Guild and a Commercial Vehicle Maker's Guild that are in process of formation.

Whether any of these Guilds will be able to establish themselves permanently is extremely doubtful, for they are being launched amid adverse economic conditions. Should they fail, as they may, it can be safely predicted that their failure will be followed by some disillusionment of many who are nowadays so hopeful, while it is a certainty that the failure will be used by opponents to discredit the Guild Movement. But Medievalists must attempt to assess these experiments at their true valuation. Their failure will not discourage them, for they have always been somewhat sceptical about National Guild policy. They have always maintained that our industrial system was not a thing of permanence and stability, and doubted the possibility of successfully superimposing Guilds over its activities. So while I should welcome the success of these experiments as removing an obstacle from our path, yet such success is not guaranteed, for behind the economic problem is the problem of men and machines, and the unwillingness of reformers to face this fact places us at the mercy of forces we cannot control.

Whatever may eventually prove to be the fate of these Guilds their organization has been more than justified, for they have cleared up for us many issues, while providing us with invaluable data that will pave the way towards a more intelligent discussion of the subject. But even if they should survive the present economic crisis, it would be a mistake to expect that any national system of Guilds could follow a mere extension of their activities. For one insuperable obstacle stands in the way of any such development--the tendency for all such activities to become choked by a multiplicity of committees. To guard against this evil, such self-governing bodies must be local and small. The units of their organization must be as small as is consonant with the function they are required to perform. And if for such purposes as those of finance and the buying of material a larger unit is found desirable, then the larger unit must consist of federated groups, while the functions of such federated groups should be limited to those that can be performed properly in no other way. Hence any national organization must be.independent of such bodies. The National Guild will be of the Medieval type on the lines foreshadowed by the Report of the Building Trades Parliament; because seeking to regulate industry rather than to organize it, the issues with which it would have to deal would be few. Such an organization would not suffer from too great a multiplicity of committees. Under the control of such national organizations of the Medieval Guild type, Guilds of the Building Guild type would find a place side by side with privately conducted businesses.

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