Showing posts with label social doctrine. Show all posts
Showing posts with label social doctrine. Show all posts

Monday, January 21, 2008

Social Credit and the Teachings of the Popes

by Alain Pilote

Applied Christianity


Clifford Hugh Douglas, the Scottish engineer who founded Social Credit, once said that Social Credit could be defined in two words: applied Christianity. A comparative study of Social Credit and the social doctrine of the Roman Catholic Church shows indeed how wonderfully the Social Credit financial proposals would apply the Church's teachings on social justice.

Primacy of the human person

The social doctrine of the Church can be summarized in this basic principle: the primacy of the human person:

“The Church's teaching on social matters has truth as its guide, justice as its end, and love as its driving force... The cardinal point of this teaching is that individual men are necessarily the foundation, cause, and end of all social institutions.”(John XXIII, Encyclical Letter Mater et Magistra, May 15, 1961, nn. 219 and 226.)


Systems at the service of man

Social Credit shares the same philosophy. Clifford Hugh Douglas wrote in the first chapter of his first book, Economic Democracy:

“Systems are made for men, and not men for systems, and the interest of man, which is self-development, is above all systems.”


And Pope John Paul II wrote in his first Encyclical Letter Redemptor Hominis (The Redeemer of Man, March 4, 1979, n. 16):

“Man cannot relinquish himself or the place in the visible world that belongs to him; he cannot become the slave of things, the slave of economic systems, the slave of production, the slave of his own products.”


All systems must be at the service of man, including the financial and economic systems:

“As a democratic society, see carefully to all that is happening in this powerful world of money! The world of finance is also a human world, our world, submitted to the conscience of all of us; for it too exist ethical principles. So see especially to it that you may bring a contribution to world peace with your economy and your banks and not a contribution — perhaps in an indirect way — to war and injustice!” (John Paul II, homily at Flueli, Switzerland, June 14, 1984.)


The bankers control money

Money should be an instrument of service, but the bankers, in appropriating the control over its creation, have made it an instrument of domination:

“This power becomes particularly irresistible when exercised by those who, because they hold and control money, are able also to govern credit and determine its allotment, for that reason supplying, so to speak, the lifeblood to the entire economic body, and grasping, as it were, in their hands the very soul of production, so that no one dare breathe against their will.”(Pius XI, Encyclical Quadragesimo Anno, May 15, 1931.)


The creation of money as a debt by the bankers is the means of imposing their will upon individuals and of controlling the world:

“Among the actions and attitudes opposed to the will of God, the good of neighbour and the «structures» created by them, two are very typical: on the one hand, the all-consuming desire for profit, and on the other, the thirst for power, with the intention of imposing one's will upon others.”John Paul II, Encyclical Sollicitudo Rei Socialis, Dec. 30, 1987, n. 37.)


Since money is an instrument that is basically social, the Social Credit doctrine proposes that money be issued by society, and not by private bankers for their own profit:

"There are certain categories of goods for which one can maintain with reason that they must be reserved to the collectivity when they come to confer such an economic power that it cannot, without danger to the common good, be left to the care of private individuals.”(Pius XI, Encyclical Quadragesimo Anno.)


Unrepayable debts

The obligation of paying back to the banker money which he did not create, brings about unrepayable debts:

“Debtor countries, in fact, find themselves caught in a vicious circle. In order to pay back their debts, they are obliged to transfer ever greater amounts of money outside the country. These are resources which should have been available for internal purposes and investment and therefore for their own development.

“Debt servicing cannot be met at the price of the asphyxiation of a country's economy, and no government can morally demand of its people privations incompatible with human dignity... With the Gospel as the source of inspiration, other types of action could also be contemplated such as granting extensions, partial or even total remission of debts... In certain cases, the creditor States could convert the loans into grants.

“The Church restates the priority to be granted to people and their needs, above and beyond the constraints and financial mechanisms often advanced as the only imperatives.”(An Ethical Approach to the International Debt Question, Pontifical Justice and Peace Commission, Dec. 27, 1986.)


“It is not right to demand or expect payment when the effect would be the imposition of political choices leading to hunger and despair for entire peoples. It cannot be expected that the debts which have been contracted should be paid at the price of unbearable sacrifices. In such cases it is necessary to find — as in fact is partly happening — ways to lighten, defer or even cancel the debt, compatible with the fundamental right of peoples to subsistence and progress.”(John Paul II, Encyclical Centesimus Annus, May 1, 1991, n. 35.)


The imperialism of money

The Church condemns both liberal capitalism and Marxist communism. Note that it is not capitalism in itself that the Church condemns, but “liberal capitalism”, “a type of capitalism”. For the Church makes a distinction, in capitalism, between the producing system and “the calamitous system that accompanies it,” the financial system:

“This unchecked liberalism led to dictatorship rightly denounced by Pope Pius XI as producing `the international imperialism of money'. One cannot condemn such abuses too strongly, because — let us again recall solemnly — the economy should be at the service of man. But if it is true that a type of capitalism has been the source of excessive suffering, injustices and fratricidal conflicts whose effects still persist, it would be wrong to attribute to industrialization itself evils that belong to the calamitous system that accompanied it. On the contrary, one must recognize in all justice the irreplaceable contribution made by the organization and the growth of industry to the task of development.”(Paul VI, Encyclical Populorum Progressio on the development of peoples, March 26, 1967, n. 26.)


Private property

The faults the Popes find in present capitalism do not derive from its nature (private property, free enterprise), but from the financial system it uses, a financial system that dominates instead of serving, a financial system that vitiates capitalism. Far from wishing the disappearance of private property, the Popes rather wish its widespread diffusion to all:

“The dignity of the human person necessarily requires the right of using external goods in order to live according to the right norm of nature. And to this corresponds a most serious obligation, which requires that, so far as possible, there be given to all an opportunity of possessing private property... Therefore it is necessary to modify economic and social life so that the way is made easier for widespread private possession of such things as durable goods, homes, gardens, tools requisite for artisan enterprises and family-type farms, investments in enterprises of medium or large size.”(John XXIII, Encyclical Mater et Magistra, nn.114-115.)


Everyone a capitalist

It would be possible for everyone to be a real “capitalist” and to have access to earthly goods with the Social Credit dividend, which would apply in concrete terms this other basic principle of the Church's social doctrine: the goods of this world are intended for all men:

“God intended the earth and all that it contains for the use of every human being and people. Thus, as all men follow justice and unite in charity, created goods should abound for them on a reasonable basis.”(Second Vatican Council, Constitution on the Church Gaudium et Spes, n. 69.)


The Social Credit dividend is based on two things: the inheritance of natural resources, and the inventions from past generations:

“Through his work man enters into two inheritances: the inheritance of what is given to the whole of humanity in the resources of nature, and the inheritance of what others have already developed on the basis of those resources, primarily by developing technology, that is to say, by producing a whole collection of increasingly perfect instruments for work. In working, man also “enters into the labor of others”.(John Paul II, Encyclical Laborem Exercens on human work, Sept. 15, 1981, n. 13.)


The machine: an ally or enemy of man?

In the present system, only those who are employed in production can get an income, which is distributed in the form of wages and salaries. The income is tied to employment. But this is contrary to the facts, since, thanks to new inventions, technology, progress, there is less and less need for human labour, workers, to produce goods: it is computers, robots, that do the job in our place.

Is technology an evil? Should we rise up and destroy the machines because they take our jobs? No, if the work can be done by the machine, that is just great; it will allow man to give his free time over to other activities, free activities, activities of his own choosing. But all of this, provided he is given an income to replace the salary he lost with the installation of the machine, of the robot; otherwise, the machine, which should be the ally of man, will become his enemy, since it deprives him of his income, and prevents him from living:

“Technology has contributed so much to the well-being of humanity; it has done so much to uplift the human condition, to serve humanity, and to facilitate and perfect its work. And yet at times technology cannot decide the full measure of its own allegiance: whether it is for humanity or against it... For this reason my appeal goes to all concerned... to everyone who can make a contribution toward ensuring that the technology which has done so much to build Toronto and all Canada will truly serve every man, woman and child throughout this land and the whole world.” (John Paul II, homily in Toronto, Canada, September 15, 1984.)


Full employment is materialistic

But if one wants to persist in keeping everyone, men and women alike, employed in production, even though the production to meet basic needs is already made with less and less human labour on top of that, then new jobs, which are completely useless, must be created. And in order to justify these useless jobs, new artificial needs must be created, through an avalanche of advertisements, so that people will buy products they do not really need. This is what is called “consumerism”.

Likewise, products will be manufactured to last as short a time as possible, in the aim of selling more of them and making more money, which brings about an unnecessary waste of natural resources, and also the destruction of the environment. Also, one will persist in maintaining jobs that require no creative efforts whatever, jobs that require only mechanical efforts, jobs that could well be done by machines, jobs where the employee has no chance of developing his personality. But, however mind-destroying this job is, it is the condition for the worker to obtain money, the licence to live.

Thus, for him and a multitude of wage-earners, the meaning of their jobs comes down to this: they go to work to get the cash to buy the food to get the strength to go to work to get the cash to buy the food to get the strength to go to work... and so on, until retiring age, if they do not die before. Here is a meaningless life, where nothing differentiates man from an animal.

Free activities

What differentiates man from an animal is precisely that man has not only material needs, but also cultural and spiritual needs. As Jesus said in the Gospel: “Not on bread alone does man live, but in every word that proceeds from the mouth of God.” (Deuteronomy 8:3.) So to force man to spend all his time in providing for his material needs is a materialistic philosophy, since it denies that man has also a spiritual dimension and spiritual needs.

But, then, if man is not employed in a paid job, what will he do with his spare time? He will spend it on free activities, activities of his own choosing. It is precisely in his leisure time that man can really develop his personality, develop the talents that God gave him, and use them advisedly.

Moreover, it is during their leisure time that a man and a woman can take care of their religious, social, and family duties: raising their family, practising their Faith (to know, love, and serve God), and help their brethren. Raising children is the most important job in the world. Yet because the mother, who stays at home to raise her children, receives no salary, many will say that she does nothing, that she does not work!

To be freed from the necessity of working to produce the necessities of life does not presume growing idleness. It simply means that the individual would be placed in the position where he could participate in the type of activity which appeals to him. Under a Social Credit system, there would be a flowering of creative activity. For example, the greatest inventions, the best works of art, have been made during leisure time. As C. H. Douglas said:

“Most people prefer to be employed, but on things they like rather than on the things they don't like to be employed upon. The proposals of Social Credit are in no sense intended to produce a nation of idlers... Social Credit would allow people to allocate themselves to those jobs to which they are suited. A job you do well is a job you like, and a job you like is a job you do well.”


Poverty amidst plenty

God put on earth all that is needed to feed everyone. But because of the lack of money, goods cannot meet the hungry; mountains of goods pile up in front of millions of starving people. It is the paradox of poverty amidst plenty:

“It is a cruel paradox that many of you who could be engaged in the production of food are in financial distress here, while at the same time hunger, chronic malnutrition and the threat of starvation afflict millions of people elsewhere in the world.”(John Paul II to the fishermen of St. John's, Newfoundland, Sept. 12, 1984.)


“No more hunger, hunger never again! Ladies and gentlemen, this objective can be achieved. The threat of starvation and the weight of malnutrition are not an inescapable fate. Nature is not, in this crisis, unfaithful to man. According to a generally accepted opinion, while 50% of cultivable land is not yet developed, a great scandal catches the eye from the huge amount of surplus food that certain countries periodically destroy for lack of a sound economy which could have ensured a useful consumption of this food.

“Here we are broaching the paradox of the present situation: Mankind has an incomparable control over the universe; it possesses instruments capable of exploiting its natural resources at full capacity. Will the owners of these instruments stay paralyzed in front of the absurdity of a situation where the wealth of a few would tolerate the persistent extreme poverty of many?... One cannot reach such a situation without having committed serious errors of orientation, be it sometimes through negligence or omission; it is high time one discovered how the mechanisms are defective, so as to correct, put the whole situation right.”(Paul VI at the World Conference of Food, Rome, Nov. 9, 1974.)


“It is obvious that a fundamental defect, or rather a series of defects, indeed a defective machinery is at the root of contemporary economics and materialistic civilization, which does not allow the human family to break free from such radically unjust situations.”(John Paul II, Encyclical Dives in Misericordia on Divine Mercy, November 30, 1980, n. 11.)


“So widespread is this phenomenon (poverty amidst plenty) that it brings into question the financial, monetary, production and commercial mechanisms that, resting on various political pressures, support the world economy. These are proving incapable either of remedying the unjust social conditions inherited from the past or of dealing with the urgent challenges and ethical demands of the present... We have before us here a great drama that can leave nobody indifferent.”(John Paul II, Encyclical Redemptor Hominis, n. 16.)


Reforming the financial system

The Pope denounces the tight-money dictatorship, and calls for a reform of the financial and economic systems, the establishment of an economic system at the service of man:

“Again, I want to tackle a very delicate and painful issue. I mean the anguish of the authorities of several countries, who do not know how to cope with the fearful problem of indebtedness... A structural reform of the world financial system is, without doubt, one of the most urgent and necessary initiatives.”(John Paul II, Message to the 6th United Nations Conference on Trade and Development, Geneva, September 26, 1985.)


“One must denounce the existence of economic, financial and social mechanisms which, although they are manipulated by people, often function almost automatically, thus accentuating the situation of wealth for some and poverty for the rest.”(John Paul II, Encyclical Sollicitudo Rei Socialis, n. 16.)


“I appeal to those in positions of responsibility, and to all involved, to work together to find appropriate solutions to the problems at hand, including a restructuring of the economy, so that human needs be put before mere financial gain.”(John Paul II to the fishermen of St. John's, Newfoundland, Sept. 12, 1984.)


“An essential condition is to provide the economy with a human meaning and logic. It is necessary to free the various fields of existence from the dominion of subjugating economism. Economic requirements must be put in their right place and a multiform social fabric must be created, which will prevent standardization. No one is dispensed from collaborating in this task... Christians, wherever you are, assume your share of responsibility in this immense effort for the human restructuring of the city. Faith makes it a duty for you.”(John Paul II to the workers of Sao Paulo, Brazil, June 3, 1980.)


The duty of every Christian

It is indeed a duty and an obligation for every Christian to work for the establishment of justice and of a better economic system:

“Anyone wishing to renounce the difficult yet noble task of improving the lot of man in his totality, and of all people, with the excuse that the struggle is difficult and that constant effort is required, or simply because of the experience of defeat and the need to begin again, that person would be betraying the will of God the Creator.”(John Paul II, Encyclical Sollicitudo Rei Socialis, n. 30.)


“Such a task is not an impossible one. The principle of solidarity, in a wide sense, must inspire the effective search for appropriate institutions and mechanisms... This difficult road of the indispensable transformations of the structures of economic life is one on which it will not be easy to go forward without the intervention of a true conversion of mind, will and heart. The task requires resolute commitments by individuals and peoples that are free and linked in solidarity.”(John Paul II, Encyclical Redemptor Hominis, n. 16.)


“These attitudes and «structures of sin» are only conquered — presupposing the help of divine grace — by a diametrically opposed attitude: a commitment to the good of one's neighbour...”(John Paul II, Encyclical Sollicitudo Rei Socialis, n. 38.)


Apostles

“All of you who have heard the appeal of suffering peoples, all of you who are working to answer their cries, you are the apostles of a development which is good and genuine, which is not wealth that is self-centered and sought for its own sake, but rather an economy which is put at the service of man, the bread which is daily distributed to all, as a source of brotherhood and a sign of providence.”(Paul VI, Encyclical Populorum Progressio, n. 86.)


Principles and implementation

Some will say that the Popes never publicly approved Social Credit. In fact, the Popes will never approve officially any economic system, since it is not part of their mission: they do not give technical solutions, but only set up the principles upon which any economic system that is truly at the service of the human person must be based. The Popes leave the faithful free to apply the system that would implement these principles in the best way.

To our knowledge, no other solution than Social Credit would apply the social doctrine of the Church so perfectly. That is why Louis Even, a great Catholic gifted with an extraordinary logical mind, did not hesitate to bring out the links between Social Credit and the Church's social doctrine.

Another one who was convinced that Social Credit is applied Christianity, that it would apply wonderfully the Church's teachings on social justice, is Father Peter Coffey, a Doctor in Philosophy and a professor at Maynooth College, Ireland. He wrote the following to a Canadian Jesuit, Father Richard, in March, 1932:

“The difficulties raised by your questions can be met only by the reform of the financial system of capitalism along the lines suggested by Major Douglas and the Social Credit school of credit reform. It is the accepted financing system that is at the root of the evils of capitalism. The accuracy of the analysis carried out by Douglas has never been refuted. I believe that, with their famous price-regulation formula, the Douglas reform proposals are the only reform that will go to the root of the evil...”


In 1939, the Bishops of the Province of Quebec, in Canada, had entrusted a commission of nine theologians to examine the Social Credit doctrine in the eyes of the Church's social doctrine, to determine if Social Credit was tainted with socialism or communism. The theologians concluded that there was nothing in the Social Credit doctrine contrary to the teachings of the Church, and that any Catholic was free to support it without danger. (See Appendix A for the full text of this study of the nine theologians.)

The Financiers were not pleased with this report of the theologians, and in 1950, a group of businessmen asked a Bishop of Quebec (out of respect for his memory, we won't mention his name) to go to Rome and get from Pope Pius XII a condemnation of Social Credit. Back to Quebec, this Bishop said to the businessmen: “If you want to get a condemnation of Social Credit, it is not to Rome that you must go. Pius XII said to me:`Social Credit would create, in the world, a climate that would allow the blossoming of family and Christianity'.”

All those who thirst for justice should therefore start to study and spread Social Credit, by soliciting subscriptions to the Michael Journal!

Read more...

Monday, January 29, 2007

The Social Order Before and After the Protestant Reformation

by William Stang




In my last article, I charged the Protestant Reformation with the main responsibility for the social evils of modern times. I propose to substantiate the indictment in the present paper, by contrasting the social order before the great upheaval in the sixteenth century with the subsequent changes in the different classes of society as the result of the Reformation. My thesis is this: A higher degree of civilization existed among Christian nations before the Reformation than at any time since; the social deterioration of which men complain is the direct result of the Reformation.

It will be well at the outset to define our terms. What is civilization? Not many years ago an American ambassador to a foreign court defined civilization as perfectly symbolized by the two words "a railroad station and a telegraph pole." There is truth in the definition, but it is not one that might be put in a dictionary.

By civilization we mean a condition of social well-being. That society or nation is civilized in which the universal welfare is recognized and respected, and where trades and arts and sciences find an orderly and natural development for the moral and physical benefit of the people at large. Civilization is based on morality. When men of the twentieth century speak and write about civilization, we suppose them to mean the Christian civilization, the highest in the history of mankind—a civilization founded on Christian morality as proclaimed by the divinely appointed teacher, the Church of Christ.

Christian morality demands such distribution of wealth that all may live comfortably; it moderates the desire for riches, because it looks upon wealth not as an end to be aimed at for its own sake, but as the means to a higher end; it teaches the right and proper use of wealth, and enjoins the giving of assistance to the poor by teaching that the superfluities of wealth are the patrimony of the needy. The maxims of Christian morality, underlying all Christian civilization, are: men are brothers; labor is the duty of every one, and has a purifying and elevating effect upon all; idleness is a vice; talents must not be buried, they should be employed for the good of all; we must have the oil of good works in our lamps, if we wish to be admitted into the kingdom of heaven. The diffusion of such moral principles among men is the greatest benefit that can be bestowed on society. The Catholic Church had inculcated these principles among the nations which she formed and truly civilized in the Middle Ages; her doctrine was the very foundation on which the whole structure of mediaeval society was reared. He who ignores the constitution and history of the Catholic Church can not comprehend how the Christian religion is both the keynote of mediaeval intellectual life, and the basis of the entire mediaeval system. All social unions, whether for agricultural pursuits or for trade and commerce, all guilds and convivial fraternities were of a religious character and part of the Church system. "A higher, spiritual side was thus given to the most everyday transactions of both business and pleasure. It was the Church which formed a link between man and man, between class and class, between nation and nation. The Church in the Middle Ages produced a unity of feeling among all men, by fostering a certain cosmopolitanism which is hard for us to conceive in these days of individualism and strongly marked nationalism. So long as the Church was powerful, so long as it could make its laws respected, it stood between workman and master, between peasant and lord, dealing out equity and binding oppression."1

A healthy and happy condition of society is utterly impossible where two things are lacking, namely (1) stability of work, and provision for the temporal wants of the future; (2) a moral conviction that we shall enjoy a blissful eternity after life's troubles are ended. Nothing will satisfy the individual or society but the assurance of temporal and everlasting peace, and this boon was extended by the Church, and accepted by society of the Middle Ages. Men could surely perform their daily task, and confidently look into the future, fully convinced that ample provision was made by Holy Church for all possible wants of soul and body. Their transgressions were blotted out by priestly absolution, and their last hours Were brightened with the consolation of religion, and a safe landing in the haven of eternity was promised to the faithful servants of Christ.

Those blessed with an abundance of earthly things were not regarded with jealousy as the fortunate rich, but as trusted stewards of the good things which God had given them for distribution among the needy. The care of the helpless poor was considered to be the sacred duty of all. The benefices and goods of Holy Church belonged, as a birthright, to the poorer classes. The members of the Church were imbued with the principle that all are the children of the same Father in heaven, all are descended from a common stock, all are members of the mystical body of Christ, who came to unite us all in one grand brotherhood. The Angel of the Schools, St. Thomas of Aquin, was not merely theorizing, but stating a living, actuating principle, when he taught: "Man should not consider his outward possessions as his own, but as common to all, so as to share them without difficulty, when others are in need."

Another living principle which influenced the daily life of the rich in the ages of faith, was the bounden exercise of Christian charity in the service of the sick, and poor, and helpless, according to the new commandment of the Lord: "Love one another." Through the observance of this precept, the Church became the greatest charitable organization in the world; her history is the history of Christian charity. She abolished slavery, ransomed captives, sheltered widows and orphans, built hospitals and asylums for the sick and abandoned, erected homes for the aged poor, —in short, she provided means for the relief of every human misery. In the third century there existed in Alexandria a brotherhood for nursing the sick.2 Fabiola erected the first large hospital in Rome. St. Basil opened the first hospital in the East, near Caesarea. St. John Chrysostom was also the founder of a hospital for the sick poor. St. Zoticus, a wealthy Roman, first a senator, then a priest, founded an orphanage at the beginning of the fourth century. St. Pachomius founded a hospice for pilgrims in the episcopal palace at the mouth of the Tiber; his example was followed by St. Augustine, who also ransomed the slaves. And as the Church progressed, she established innumerous orders of men and women to serve the sick in hospitals and at their homes. Monasteries and episcopal residences, colleges for chapters, were always built with provision for the pilgrims and the sick. The hospital of Santo Spiritu in Rome has done more for the sick poor than any other institution of its kind in the whole world. Such an institution is worthy of the great white father of Christendom, in whose heart is ever alive the fire which the Master came on earth to kindle.

It will not be out of place to mention here the Military Orders of the Church, such as the Knights of St. John, the Knights of the Cross, and the Knights Templar, who rendered an immense service to humanity by deeds of the most touching and sublime charity. They were not instituted to propagate the Gospel with the sword, but they became soldiers of Christ and marched under the protection of our Lady to safeguard the holy places and shrines, to clear the highways of brigands, to guard the pilgrim on his journey, to help the sick, the poor, the orphan, and the widowed. "It is beyond all doubt that chivalry has never appeared more worthy of admiration than in the military religious orders, in which it was necessary to make a sacrifice of all the affections, to renounce the glory of the warrior and the solitude of the cloister, to assume the responsibility of two states of life, to serve in the camp, and to discharge the duties of a monk, to be the terror of the enemy and the consolation of the afflicted. The Knights in Europe went in search of adventure; the religious Knights, in the name of poverty and misfortune. The Grand Master of the Hospitalers styled himself the guardian of the poor of Jesus Christ. The poor were called by the Knights 'our masters.' Wonderful power of religion, which, at a time when the sword was everywhere victorious, taught the valiant to be humble, and showed that pride was not, as commonly believed, an essential element of bravery." So far the Italian historian, Cesare Cantu, whose words carry the weight of profound learning. The celebrated German historian, Frederic Hurter, maintains that all the institutions of beneficence which mankind today possesses for the solace of the unfortunate, all that has been done for the protection of the indigent and the afflicted in all the vicissitudes of their lives, under all kinds of suffering, has come, directly or indirectly, from the Catholic Church.

This beautiful charity of the Church is not to be confounded with our modern philanthropy, that noisy counterfeit of Christian charity." Philanthropy," as Ozanam said, "is like a woman admiring herself; Charity is a mother with a child in her arms."

One factor which essentially contributed to the social well-being in pre-Reformation times, and which has been lost sight of in our days, is the moral value and high esteem in which labor was held by all classes. It was firmly and universally accepted that all men are born to labor,—some with their hands, in fields and workshops; others, in learning and art; others, in war for the protection of home and country; again others, as servants of Christ and His people. All men were supposed to be laborers. Werner Rolewink, a learned Carthusian friar, wrote on the eve of the Reformation: "God and the laborer are the lords of all that serve for the use of man."

A prayer-book, used by the people in the fifteenth century and called The Christian Monitor, says: "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 alone, else shall our labor be without blessing, and bring evil on our souls. Men should work for the honor of God, who has ordained labor as our lot. Man should labor to earn for himself and his family the necessaries of life, and for what will contribute to Christian joy and also assist the poor sick by the fruits of his labor." That this admonition was generally heeded, may be inferred from the prosperous condition of industry and the total absence of pauperism. Guilds and trades unions were flourishing, while peasants were continually acquiring land and rising to the state of freeholders. There were none of the extremes of wealth and poverty that presently cause so much strife and discontent and engender dangerous class hatred. Let me now describe more in detail, though briefly, the condition of the three branches of industry: agriculture, handicraft, and commerce.

AGRICULTURAL LIFE

Janssen draws from authentic sources a charming picture of peasant life in Germany toward the close of the Middle Ages.3 He tells us that in the farmer's house the hearth was built in the middle; and the farmer's wife, from her elevated seat behind it, could keep her eye on the whole establishment at once, and could survey at a glance, children, servants, horses, cows, garret, cellar, and dwelling rooms. The seat by the hearth was the best in the house. The fire was kept burning on the hearth all day long, and smouldered on through the night, being put out only, according to an old custom, at the death of the head of the house.

A book on agriculture, written shortly before the Reformation, says: "The true farmer has no greater blessing than his house and wife and children. He loves his work and holds his calling in high esteem, for God Himself instituted it in Paradise." A popular song runs thus: "Said the Knight to the farmer, 'I am born of a noble race.' The farmer replied proudly, 'I cultivate the corn; that is the better part. If I did not work, you could not live on your heraldry.'"

Closely united and acting on their motto—" All for one, one for all," the farmers of those days were conscious of their dignity and importance as tillers of God's earth who furnished daily bread for all. Two principles prevailed everywhere among them on which their liberties, claims and responsibilities were based: one taken from the Church (Canon) law: No man belongs to another; the other, borrowed from the imperial law: The people are God's and the tribute is the Emperor's.

At the close of the Middle Ages the soil belonged chiefly to nobles, monasteries, and institutions of education and charity. There was, however, a respectable number of landed peasant proprietors. And as the land was constantly increasing in value, so the number of free farmers was steadily rising. The law of heredity protected land properties from being broken up: the eldest son inherited the farm, with the obligation to support the rest of the family. Tenant farmers of those times should not be confounded with serfs, for serfdom no longer existed. Besides the farmer there was the so-called house tenant, who was provided with a small cottage and garden and worked on the farm.

Tenant farmers, or those who paid rent on the land, could not leave the farm without the permission or knowledge of the landlords. But the leases of land were perpetual, and thereby secured one of the greatest boons to the agricultural classes—stability of existence. The rents were small, often nominal, especially on land owned by monasteries, which let their property simply to provide the people with shelter and work. Thus, in Austria, the payment of rent consisted in performing twelve days' service annually in the employ of the proprietor. During this kind of feudal service the landlord had to support the tenant farmers "with good cheer," so that the time of service frequently became a season of merriment and feasting, at which the tenants acknowledged the vested rights of the landowners and enjoyed their paternal bounty.

Peasants, as a rule, were well housed, finely clad, and abundantly fed, so much so that certain popular preachers of the time called them proud and luxurious, and denounced their dressing in silks and velvets, pearls and gold, their eating of dainty viands, and their drinking of strong and costly wines. Farm hands were well paid and fed. From labor contracts between farmer and helper we learn that the servants had two courses of meat for dinner, and were entitled to meat at supper.

The same condition of things among farming people prevailed in England before the Reformation, whence the country received the well-deserved title of "Merrie England." Domestic relations were still of a patriarchal character and sustained by religious fervor. Woman was the helpmate of her husband, his constant companion at home, the queen of the household. She looked after the maids, instructed them in housekeeping, and taught them embroidery and spinning. She had to see to all the servants, keep her own keys, attend to the sick, and—spare her tongue, but not spare the rod.

The dissolution of convents, monasteries, and other ecclesiastical institutions, and the subsequent wholesale confiscation of Church and lands, to which we shall shortly advert, threw the peasant class into a state of unprecedented pauperism. The monks, who had been easy and indulgent landlords, were succeeded by selfish despots who introduced rack-rent for the tenants and brought them to that pitiable state of serfdom in which the nineteenth century—to the eternal shame of Protestant England!— found the tenant farmers of Ireland.

THE TRADE GUILDS

Guilds, as societies of artisans and tradesmen for mutual aid and protection, were organized even in pagan times, as we learn from the Roman historians. A sense of insecurity as to the means of obtaining a livelihood and the fear of being pressed down to a slave-like condition have driven men, at all times, to the formation of associations for mutual assistance. The guilds of the Middle Ages, however, were not merely beneficial or mutual aid societies; they were essentially of a religious character, the product of the Church; they originated in the spirit of Christian charity and brotherly love which then flourished among the nations of Christendom.

L. Brentano, a most erudite and well-equipped scholar on this subject, in his masterly essay on History and Development of Guilds, is of opinion that the guilds of the Middle Ages, and as they still exist in Catholic countries, have their origin in a connection with monasticism, and in an imitation of it on the part of men who, though wishing to accumulate merits for the next world, yet would not renounce the present; and that this origin is to be sought in Southern lands, in which Christianity and monasticism were first propagated.

There were guilds for every trade and profession: guilds of jewelers and workers in metal, bakers and butchers, tailor and cobblers, carpenters and masons, tanners, drapers, hatters, linen-spinners and wool-weavers, and many others. They were bound together by the strictest rules and customs, and had their special uniforms, corporate seal, and place of meeting. In many cities they lived together on the same street, or in the same quarter, around their guildhall, where they frequently assembled to discuss their common interests, to inquire into the observance of the statutes, or share in the joys of large and fraternal banquets. The type and image of the guild was the Christian family. They selected their own officers, who disposed of masterships, delivered patents, collected fees, visited the workshops, and imposed necessary fines. Those chosen by the guilds had to accept the office or pay a heavy fine. All disputes among the members were settled by the guilds, and not in court. The expenses of the guilds were provided for by entrance fees, regular contributions, and legacies. Each craft was independent and regulated its own affairs. The king's license was not necessary for the foundation of a guild. Indeed, guilds often fought kings and held them responsible for wrongs inflicted on their fellows. The by-laws of all the guilds breathe the spirit of reverence for law and of love of liberty. No ordinance could be made against the common law; the liberties of city and town were to be upheld; rebels against the law were expelled from the guild. Nearly every single guild was incorporated and subject to a uniform principle of government. The charter, with' constitution and by-laws, had to be submitted to city and town authorities for approval.

It was the religion of Jesus Christ, as taught by the Catholic Church, that held the members of these various associations together in the spirit of brotherly love and in the sure hope of an eternal reward. Their essential nature is pointed out by the great Archbishop Hincmar as the obsequium religionis, which means prayer coupled with every exercise of charity. The purpose of divine service and prayer stands out prominently as the chief object of brotherhood. The guilds were under the special protection of popes and bishops, and enjoyed many spiritual privileges which were highly prized in the ages of faith.

The number of guilds was very large. At the beginning of the sixteenth century there were thirty thousand such organizations spread over England, most of them well endowed with lands and houses. There were eighty in the city of Cologne in Germany, seventy at Lubeck, and over a hundred at Hamburg.

"The guild," as Brentano remarks, "stood like a loving mother, providing and assisting, at the side of her sons in every circumstance of life, cared for her children even after death; and the ordinances as to this last act breathe the same spirit of equality among her sons on which all her regulations were founded, and which constituted her strength. In cases of insolvency at death, the friends of poor members were to be equally respected with those of the rich." This reads like a romance in these days of greed and selfishness, but we must remember that religion had so permeated every feature of social and domestic life that all the guilds of craftsmen and merchants appear as so many religious confraternities. One of the first requisites, in fact the essential condition for the formation of a guild, was that they find a priest, "holy and learned," to act as their chaplain, in conducting special services for them and saying Mass for the living and dead members. His salary was determined at the outset and faithfully paid by the members. "In this respect," remarks Brentano, "the craft guilds of all countries were alike; and in reading their statutes one might fancy sometimes that the old craftsmen cared only for the well-being of their souls. All had particular saints for their patrons, after whom the society was frequently called; and, when it was possible, they chose one who had some relation to their trade. They founded Masses, altars and painted windows in cathedrals; and even at the present day their coats of arms and their gifts range proudly by the side of those of kings and barons. We find also innumerable ordinances as to the support of the sick and poor; and to afford a settled asylum for distress, the London guilds early built dwellings near their halls." Such a condition of things ought to meet the unqualified approbation of Carroll D. Wright, who maintains that "an ideal state of society is to be found only when religious elements predominate."4

The Corpus Christi procession gave ample opportunity for the display of liveries, banners, insignia and emblems of the various guilds. It was, however, chiefly a religious act, a solemn and public profession of Catholic faith in the Real Presence of Christ in the Holy Eucharist, as it may still be witnessed every year in Catholic cities, such as Vienna and others of the Old World.

The patronal feasts of the guilds were days of great rejoicing and display. Gorgeous processions in picturesque and costly robes, with lights and flowers and music, moved in perfect order, gaily, through the streets and delighted the hearts of young and old. All was religious. "Each guild's first steps were bent toward their church, where Solemn High Mass was chanted; thence went all the brotherhood to their hall for the festive dinner. The procession on the occasion and other amusements so dear to Englishmen, when their country was "Merrie England," were meant to be edifying and instructive; and helped religion to make her children both good and happy, through even their recreations. .... Through such means, not only were the working-classes furnished with needful relaxation, but their very merry-making instructed while it diverted them."5

Public dinners, with music and song, at which all the guild-men assisted with wives or sweethearts, would follow the religious ceremonies. After dinner, theatrical representations of a semireligious nature would amuse and instruct young and old. Thus both soul and body were regaled at the patronal feasts. It is true that feasting and drinking sometimes gave occasion to ecclesiastical interference, but a natural readiness to submit to and obey would prevent a universal abuse of the good things.

Nor were educational facilities lacking for the children of the guildmen, and out of the common treasury many colleges and schools were founded and supported. The constitutions and bylaws of the guilds of all countries were fundamentally the same. They were inspired and carried into effect by that Holy Church which all the nations of Europe venerated and loved as their common mother. "If a brother falls into poverty, if he incurs loss by fire or shipwreck, if illness or mutilation renders him unable to work, the brothers contribute to his assistance. If a brother finds another in danger of life on sea or in captivity, he is bound to rescue him, even at the sacrifice of a part of his own goods; for which, however, he receives compensation from the brother assisted, or from the community. English guilds' statutes frequently mention loans to be given to brothers carrying on trade, often with no other condition than the repayment of it when it should be no longer needed. The sick brother found in his guild aid and attendance; the dead was buried; for his soul prayers were offered, and services performed; and not infrequently the guild gave a dowry to his poor orphan daughters. The numerous provisions as to the poor, as to pilgrims, and other helpless people, in the statutes of English guilds, prove that non-members in want found help from them as well."6 The duties of the guild-brothers consisted chiefly in the exercise of the corporal works of mercy. The principles and motives of the association were Christian charity, and not, like the beneficial organizations of our own day, personal gain and profit. It was something higher than material gain and personal advancement that led men into these associations. It was a lively faith and an ardent desire for the practice of Christian virtue, or, as an ancient guild of Exeter in England put it to its members, that they thus collected in assembly "for the love of God, and for our souls' need, both to our health of life here, and to the after days which we desire for ourselves by God's doom."

One of the principal objects of the craft-guilds relating to the temporal welfare of its members, was to render them secure in the independent earning of their living by means of their trade. Freedom of trade was stoutly opposed by legal enactments. All artificers and craftsmen had to choose their trade or craft, and after having chosen it, they could not use another. Legal provision was made to enable every one with a small capital to earn his daily bread in his trade, without fear or danger of being "run out of business" by a wily neighbor. This became a live principle in all the craft guilds of the Middle Ages. We find it put into form and shape in the so-called "Secular Reformation" of Emperor Sigismund, issued in the year 1434. Herein the ancient law is reinforced, prohibiting that one person carry on more trades than belong to him: "Will you hear what is ordained by imperial law? Our forefathers have not been fools. The crafts have been devised for this purpose, that everybody by them should earn his daily bread, and nobody shall interfere with the craft of another. By this the world gets rid of its misery, and everyone may find his livelihood. If there be one who is a wineman, he shall have to do with his wine trade, and shall not practise another thing besides. Is he a baker, the same, etc., no craft excepted. And it is to be prevented on imperial command, and to be fined with forty marks of gold, where it is heard that the imperial towns do not attend to this, that nobody of any trade whatever shall interfere with the craft of another."

The relations between masters and workmen were regulated by law. Incipient disputes and difficulties were settled by the warder of the guild as the deciding authorities. If a master failed to pay his workman the lawful wages, he had to stop working at his trade until he discharged his debt. On the other hand, "if any serving man shall conduct himself in any other manner than properly toward his master, and act rebelliously toward him, no one of the trade shall set him to work until he shall have made amends before the mayor and aldermen, and before them such misprision shall be redeemed."7 The Tailors' Guild of Vienna had this rule, that "no workman shall be allowed to leave his master fourteen days before a festival," generally at a time when there would be the greatest demand for work.

The ordinances of the guilds for the regulation of wages were supported by State law. Winter wages were lower than those paid in summer. A certain rate of wages was fixed in all the departments of industry. Nor was this considered to be an undue interference of the State in the Middle Ages; for the State's first duty consisted in protecting the weak against the strong, the poor against the rich. People believed not only in certain rights and privileges, but also in duties and obligations of individuals toward society. Every attempt to oppress or even to take unseemly advantage of the temporary distress of another was looked upon as usury and severely condemned. The rich who paid higher wages than the statute allowed and thus raised the rate of wages and who thereby prevented poorer men from having laborers, were punished. When in the year 1362, a destructive storm in London caused great havoc to the roofs of houses, a royal order decreed that "materials for roofing, and the wages of tilers, shall not be enhanced by the reason of the damage done by the tempest."

The guild men were taught to look upon work as a sacred trust, a holy function, the complement of prayer, and the foundation of a virtuous life. Before their eyes were the luminous examples of those blessed toilers, the saints of God, whom they represented with the implements of the various trades; thus the Blessed Virgin Mary was represented as busy at the spinning wheel, and her holy spouse, St. Joseph, with hammer and saw. As every member of the guild had to be of legitimate birth and of an unblemished and spotless reputation, so his work was to be solid and faultless as the manifestation of his character. Sham and deceit were universally despised, and legal penalties were inflicted on work of inferior quality. To prevent fraud and deception, all trades were under the close inspection of the guild warders and local authorities. Thus the jewelry business, which presented a special temptation to cheating, was kept under vigilant eyes. To check the deceits which had crept into the jewelry trade, an Act was passed in 1403, providing that, "Whereas many artificers, imagining to deceive the common people, do daily make brooches, rings, beads, candlesticks, hilts, sword-pommels, powder boxes, of copper and lead, like to gold and silver," a penalty is decreed on those who pass for gold and silver what is but copper and lead. A man should see whereof a thing is made "for to eschew deceit." In their anxiety to secure the production of solid articles, silk was allowed to be imported into England only as raw material, because of its being in foreign lands "falsely and deceitfully wrought." Worsted goods were considered false work and false stuff, not being exclusively of real wool; for persons purchased goods "trusting that it shall be within as it showeth without, where of truth it is the contrary."

The same strict supervision was exercised over food and provisions. Butchers and bakers were severely punished if they asked unfair prices or sold bad meat or bread. In some parts of Germany dishonest bakers, when caught, would publicly be placed in a basket attached to a long pole, and dipped in a puddle. The Bakers' Guild of Winchester ordained, that the bread should be white and well baked; each loaf should be of full weight, under penalties according to the lack of weight. Bread could not be fetched from the baker's before noon. Every baker had to put his seal on every loaf, so that he could not disown it if it was not good. Every product from the hand of a member of a guild was to be perfect, "for the honor of God and the welfare of man." To insure the good qualities of their wares, men were not to work at night by candlelight, but only in full day-light. The vacation days of the guild brothers were many, and their hours of work were comparatively short, so as to give them plenty of time to attend to their many religious and domestic duties. Thus the weavers of London were forbidden to work between Christmas and Candlemas Day (from December 25th to February 2d). The cutlers of Hallamshire were not allowed to work from August 8th to September 5th, nor from Christmas to January 23d.

Every trade was divided into three classes: masters, companions (or journeymen), and apprentices. Apprenticeship lasted from two to seven years, and began between the ages of twelve and seventeen. A master was allowed only one apprentice besides his son; an exception was made in favor of butchers and bakers, who were allowed an unlimited number of apprentices. The admission of an apprentice was surrounded with impressive ceremonies; it took place in the town hall, in solemn session of the guild, and in presence of the town authorities. The apprentice was solemnly placed under the master's care, and thereby became a member of his family. The master stood to him in the place of father, and watched over his morals as well as over his work.

The nomination of a journeyman or companion was the next important event in the guildman's life, and followed the expiration of the term of a satisfactory apprenticeship. He reached the highest point of honor at his installation as a master. The journeyman who desired to become a master had to undergo a most trying ordeal: under the supervision of a competent judge, chosen by the guild, he had to produce his masterpiece, a faultless piece of workmanship.

Of all the guilds, it appears, the Weaver's Guild enjoyed the greatest honor and independence; its members distinguished themselves, especially in Flanders and Brabant, by wealth and self-respect, and stood at the head of all other craftsmen. The other guilds were modelled after theirs.

The continual intercourse between the towns of the several trading countries, maintained chiefly through the so-called Hanse Towns, produced a general similarity in the development of the social order. It is not surprising, therefore, that the same religious fervor and spirit of charity are found in all the guilds of Europe. The same anxious solicitude for the repose of the faithful departed— hence the many Masses and constant almsgiving "for the soul and sake of the dead "—and the same helping endeavor for the widows and orphans characterize the guilds of all nations. Dowries were frequently given by the guilds to poor girls so as to enable them to become nuns or to marry. Thus a guild of London had this provision: "If any good girl of the guild, of marriageable age, cannot have the means found by her father, either to go into a convent or to marry, whichever she wishes to do; friendly and right help shall be given to her, out of our means and our common chest, towards enabling her to do whichever of the two she wishes to do." A similar ordinance is made by the Guild of Berwick-upon-Tweed: "If any brother die, leaving a daughter true and worthy and of good repute, but undowered, the guild shall find her a dower, either on marriage or on going into a religious institution."

Owing to the flourishing condition of the guilds, trade in all its various branches and products reached, particularly in Germany and England, a degree of perfection which it has not attained since the days of the Protestant Reformation. In many monasteries, architects, painters, and brass founders were living and working in large numbers. The religious calm and serenity which reigned in these holy places added to the serenity of existence and lent a cheerful energy and indomitable perseverance to the work of the artisan. The Church employed large numbers of artists and mechanics in the construction of her magnificent churches, schools, and monasteries. The bishops of the Middle Ages were the chief patrons of architects and builders, and the trowel was significantly placed into their coat of arms. The episcopal cities were the most prosperous. Fairs and markets, held around the grand cathedrals in connection with Church festivals (frequently on the anniversary of the dedication of the churches, hence the word Kermess or Kirchweihe), gave a great impetus to trade and manufacture.

Toulmin Smith, after a careful examination of the statutes of English guilds, sums up for us their history, and points out how the ancient principle of association, for several centuries, had been an essential part of the social life of England, and that it had always worked well until they were forcibly meddled with. He believed that if the spirit in which those early fathers met together, prayed together, aided one another, their faith in law-abidingness and liberty, and their charity, could be shown to their brothers and sisters of these later days, it would not only bring closer to the present the hearts and hands of the past with profit to themselves, but that the work would also, by example, give invaluable hints to sincere men and workers now.8

COMMERCE

In pre-Reformation times agriculture was held in the highest popular esteem; next to it came handicraft. Commerce came last and lowest in public estimation. Commerce, it was said, could not enrich the nation; for it only transferred goods from one hand to another, and what the merchants gained was at the cost of the people. The celebrated scholar of Rotterdam, Erasmus, did not speak in eulogistic terms of the merchants of hi time: "Merchants are the vilest and most contemptible men they lie, cheat, steal, and impose upon others."

But with the growth of industry commerce began to thrive and at the close of the fifteenth century we notice, with industrial prosperity, everywhere the signs of commercial opulence. The fishing trade and the coal trade developed considerably, and added to the national prosperity of England, while individuals rose from lowest conditions of life to immense wealth. Wool became the chief commodity and principal article of commerce in England. English wool was of the finest quality, and superior to any produced on the Continent. It was frequently exported into Flanders and Spain, to be sent back after it had been manufactured into cloth. The demand for wool exceeded the supply. It was on account of the increasing value of wool that much arable land was converted into pasture; the raising of sheep became more profitable than the cultivation of corn and grain. Still there remained an abundance of cereals, and enough to supply foreign markets.

Germany, so rich in mines, was the Mexico and Peru of Europe. Some of the German cities carried on a European commerce. Nuremberg, a beehive of industry, sent abroad everywhere its almost priceless works in gold, silver, copper, bronze, stone, and wood. In 1458 AEneas Sylvius, afterwards Pope Pius II, wrote: "We proclaim it aloud, Germany has never been richer or more prosperous than to-day. The German nation takes the lead of all others in wealth and power. The houses of the burghers of Vienna are roomy and richly decorated, built of freestone, with high, stately facades, painted within and without; they look like palaces of princes."

Christianity, as represented by the Catholic Church, always demands justice in commerce; it ever condemns usury, as diametrically opposed to justice. An universal delicacy in dealing justly with one's neighbor was manifest in pre-Reformation times, sometimes to such extent as to look unfavorably, and even condemningly, on the lending of money on interest. Under Henry VII, an act of parliament was passed "against usury," which then meant and was explained against all lending of money on interest. Janssen explains in his History of the German People how this fine sense of justice became prevalent in those ages :The ecclesiastical law9 insisted that no interest should ever be exacted from those in need, to whom money was lent as a help in immediate want; such exaction was considered disgraceful trading on the necessity of a fellow creature, and covetous appropriation of what belonged to another. This moral and religious code obtained judicial sanction from the State in the Middle Ages as being the embodiment of the Christian order of society; the ecclesiastical law against interest was treated as secular law, and ruled in the civil as well as in the Church courts of justice.

In the fifteeenth century, impoverished Italians fell into the hands of Jews and unscrupulous Christians who lent money at an exorbitant interest. Poor Franciscan Friars then collected a large sum of alms, opened a bank, and rescued the people from the fangs of usurers by lending out money on very little or no interest. This is the origin of the famous Monts-de-Piete. Disappointed Jews tried to crush this charitable undertaking, but the Church threw her protecting mantle over it and caused it to prosper.

To buy up commodities with a view of selling them again at a higher price, was considered the worst form of usury. "Whosoever buys up corn, meat, and wine," Trithemius says, "in order to drive up the price and to amass money at the cost of others, is, according to the laws of the Church, no better than a common criminal." Canon law forbade the arbitrary raising of the price of food and other commodities, and required the fixing of the right prices and the just wages for labor. Janssen justly concludes: "It was the casting aside of those principles that caused the ruin of the working classes and the rise of the proletariate of later times."

No wonder that non-Catholic writers have found themselves compelled to extol this phase of the social order in the Middle Ages. They marvel at the almost universal content of the working people and at the harmony and peaceful interchange of the different classes of society, and when reflecting on the chaotic condition that followed the outburst of the sixteenth century and the social unrest and dissatisfaction of modern times, they then in mournful remembrance bestow unstinted praise on the days of guild-life. "How beneficial," the Protestant Novalis says, "how well adapted to the exigencies of human nature, were these religious institutions, is proved by the vigorous expansion of all human energies; by the harmonious development of all moral and intellectual faculties which they promoted; by the prodigious height which individuals attained to in every department of art and science, and by the universally prosperous condition of trade, whether in intellectual or material merchandise, throughout the whole extent of Europe, and even to the remotest India. A vital Christianity was the old Catholic faith. Its all-presence in life, its profound humanity, the indissolubility of its marriages, its adaptation to human wants, its joy in voluntary poverty, obedience and fidelity—as these are the primary traits of its institutions, so they undeniably stamp it as a genuine religion.10

After the Protestant Reformation

The great Spanish philosopher Balmes describes the condition of Europe before the religious revolt as most prosperous: "Europe everywhere displayed extreme activity; a spirit of enterprise was developed in all hearts; the hour had come when the nations of Europe were about to see open before them a new horizon of power and grandeur, the limits whereof were invisible to the eye."11

But dark clouds were steadily gathering, and soon covered that "new horizon" with a pall of nameless distress. The hour had come when "the wild boar" entered the blossoming vineyard of Christian civilization and caused indescribable havoc in God's plantation. A priest lifted his hand against the Church that had educated him, and raised him to the sacerdotal dignity, after he had vowed obedience to her. The blow he dealt did not bring about the death of the Church, for she is immortal; but it fell upon the nations of Europe, and opened an ugly gash from which their life-blood has been ebbing away ever since, and which will not close until their return to the unity of faith.

It is only of late years that the history of the Protestant Reformation is generally being studied from original sources, and that the so-called Reformers, divested of their fictitious greatness and fabulous heroism, are permitted to appear in their own apparel and speak in their own language. Martin Luther is no longer, in the eyes of scholars and solid historians, the "sublime hero" and "saintly reformer;" his name will no longer be handed down to generations, except as a name of infamy and dishonor. Luther was not a reformer, but a wanton rebel, and the father of a fatal revolution. In the place of the spiritual hierarchy instituted by Christ, he put intellectual anarchy. Under the pretence of seeking freedom, men were induced to renounce allegiance to a divinely constituted authority, and to accept the opinions of the Reformers. Reason had as little to do with the Reformation as liberty. Wherefore Laurent remarks: " Protestantism ends with the denial not only of liberty, but also of reason."

Luther's teaching had a calamitous effect even upon the material condition of the German people, inasmuch as it rudely overturned the established social order. It consummated the degradation of the free peasant to the condition of the serf; it destroyed, or reduced to a mere shadow of their former selves, the innumerable guilds, by removing the old Church influence which gave them life and stability, and prevented their becoming selfish trade monopolies; it broke up the entire German society by weakening the religious belief, and brought about the almost indescribable immorality and dissoluteness of the people in the middle and second half of the sixteenth century, which only found a parallel in the nigh complete disappearance of all true intellectual and artistic activity.12

Luther was anything but a liberator of the poor from the tyranny of the mighty. He was ever on the side of power and wealth. In 1898, Professor Harnack said at the Evangelical Social Congress in Berlin, that the founder of Protestantism had neither eye nor heart for the social improvement of his time. Indeed, Luther taught the most slavish doctrine of submission to the powerful, even "against knowledge and reason." He maintained that the abolition of slavery would be against the Gospel. He caused the riotous and bloody revolt of the country people in 1525, known as the Peasants' War, He openly incited the peasants into rebellion, but when he saw the enormity of the crimes committed under the sanction of his "new Gospel," he became the apostle of despotism, and preached the slaughter of the poor deluded peasants: " Prick! Strike! Strangle, whosoever is able to! Well for thee if thou shouldst die doing so; for a happier death thou couldst not obtain."13

After the Peasants' War, Germany presented a most dismal appearance. Over one thousand convents and castles lay in ashes; hundreds of hamlets had been burned to the ground; the fields were uncultivated, the ploughing utensils stolen, the cattle killed or carried away. The widows and orphans of more than one hundred and fifty thousand slain peasants were living in deepest misery. These were some of the fruits of Luther's preaching of which he seemed to boast: "I, Martin Luther, have slain all the peasants in the insurrection because I commanded them to be killed; their blood is upon my head. But I put it upon the Lord God, by whose command I spoke."14

Without a true conception of Luther's character and work, no one can form a correct estimate of the virulent nature and tragic importance of the so-called Reformation. The same is to be said of his fellow reformers: they were mischievous enemies of the people and the fiery propagators of despotism and absolutism. That lofty spirit of Christian democracy and popular liberties which flourished in the Middle Ages perished with them. "We have to keep the people in poverty, so that they may remain in subjection and obedience," Calvin says; and they are hard words in the mouth of one who claimed to bring liberty and prosperity to millions. In Geneva, he organized a reign of terror, and wherever his doctrine was accepted, people fell into a state of barbarism. During the two centuries in which Scotland bore the yoke of Calvinism, it was the poorest and most uncivilized country of Europe.

The disciples of the "Reformers" did not seek the good of the Church, but Church goods; they hungered and thirsted not after justice and purity, but after silver and gold. The petty rulers saw in the Reformation only an opportunity of increasing their own lands and revenues by seizing those of the Church. Zeal for religion was a plausible excuse for spoliation. "There is something unspeakably revolting to the human mind in the combination of petty dominion and boundless tyranny; but never did it assume a more odious form than when religion became the sport of such men's caprices. The people had so little to do with the movement that they may be said not to have comprehended its purport."15

Protestantism is, in its very essence, revolutionary: it is a protest of individual reason against divine authority as represented by the Church of Christ. It is the religion of individualism and as such prepares the way for socialism and anarchism. Rodbertus, one of the greatest national economists of Germany, confesses this truth when he writes: "Not individualism, but socialism closes the series of emancipations which began with the Reformation. Socialism gives individualism its final sanction." The Reformation was in fact a sinister emancipation: it unloosened the beast in man; it appealed to all that is low and degrading in human nature; it renounced obedience to God, and put man in His place. All modern uprisings against lawful authority; all rebellion of the public mind against the Divinity and the Church of the Incarnate Word are traceable to the Protestant Reformation as the prolific mother of spiritual and social anarchy.

A great English historian and philosopher corroborates these statements. Buckle, in the first volume of his History of Civilization, remarks: "The Reformation being an uprising of the human mind, was essentially a rebellious movement, and thus increasing the insubordination of men, sowed in the sixteenth century, the seeds of those great political revolutions which, in the seventeenth century, are noticeable in nearly every part of Europe. Whatever the prejudices of some may suggest, it will be admitted by all unbiased judges, that the Protestant Reformation was neither more nor less than an open rebellion. . . . That same right of private judgment, which the early reformers had loudly proclaimed, was now pushed to an extent fatal to those who opposed it." This it was which, carried into politics, overturned the government, and carried into religion, upset the Church. Professor Laurent, of Ghent, who has never been accused of any love for the Catholic Church, says :

"The Reformation is a revolution, and every revolution brings misfortunes and ruins without number. The Reformation, more than any other revolution, was accompanied by blood and devastation; in France, the civil war and the terrible massacre of St. Bartholomew; in England, the scaffold permanently erected by the conqueror against the conquered; in Germany the Thirty Years' War that put back civilization for a century; everywhere disunion and hatred, dividing Christians among themselves up to the present day."16

What Erasmus said of the effect of the "Reformed Religion" on literature, "Ubi regnat Lutheranismus, ibi litterarum est interitus," is equally true of the social condition.

Janssen gives a sad and ugly picture of the decadence of social and moral life in Germany from 1520 to 1570. He has proved beyond doubt, by an accumulation of historical facts, that the Reformation was principally a social and economic revolution, the rising of the rich against the poor, the violent seizure of the funds left by the generosity of centuries for the benefit of the needy, and the instruction of the ignorant, the suppression of hospitals, asylums and schools created by a lively faith.

For England, William Cobbett, in his History of the Protestant Reformation, proves that the Reformation was "a devastation of England, which was at the time when this event took place, the happiest country, perhaps, that the world had ever seen;" he shows how the Reformation "marched on plundering, devastating, and inflicting torments on the people, and shedding their innocent blood;" and he presents to "all sensible and just Englishmen" a list of abbeys, priories, nunneries, hospitals and other religious foundations confiscated by the Reformers, who brought to England the misery of pauperism "in exchange for the ease and happiness and harmony and Christian charity enjoyed so abundantly and for so many ages "by Catholic England; and he maintains that "the Reformation is the cause of misery, mendicity, nakedness, famine and the endless list of woes which we see and which stun our ears. England celebrated, when it was Catholic, as the land of hospitality, generosity, comfort, opulence and serenity, has become, under the Protestant yoke, the theatre of cold egotism, of the labor of the beasts of burden, of extreme misery and rapacity."

One of the best writers on the economic history of England, Thorold Rogers, who has never been suspected of any admiration for the Catholic Church, says in his History of Agriculture: "Since the Reformation a conspiracy, concocted by law and carried out by parties interested in its success, was entered into to cheat the Englishman of his wages, to deprive him of the means of providing for old age . . . and to degrade him into irreparable poverty." He points to the guilds of the Middle Ages which obviated pauperism: "They assisted in steadying the price of labor, and formed a permanent centre for those associations which filled the function that in more recent times trade unions have striven to satisfy." "The shameless confiscation of the entire property of the Craft Guilds is one of the worst kinds of wanton plunder in European history, perpetrated under Henry VIII and Edward VI to fill the royal purse, brought untold misery to the masses of the working people."

"Merrie England" died with the departure of the olden religion; the working people, once so proud and noble, entered into a dreary servitude. One instance from London to show how desolate and hard became the lot of apprentices who enjoyed such paternal care and protection in the Catholic guilds. When Cromwell had abolished the feasts of Christmas, Easter and Whitsuntide and other festivals commonly called holidays, "as tending towards superstition," and had introduced the strict puritanical observation of Sunday, the apprentices, who by this "were not only deprived of the benefit of visiting their friends and kindred," but of the necessary recreation, petitioned Parliament in 1646 for the appointment by law of one day in every month for these purposes; and Parliament thereupon set apart for them the second Tuesday in every month.

No sooner was the beneficent influence of the Church withdrawn from the craftsmen by the disestablishment of the guilds than they sank into disorder and weakness. Their isolated way of working left them to the hardness of grasping men.

"But," as Brentano remarks, "when the zeal against everything connected with Catholicity, influenced by the Reformation, had cooled down a little, the old associates felt painfully the want of their former convivial gatherings. Guilds were therefore reestablished for social purposes, and from this probably originated our clubs and casinos of to-day. Of the essential nature of the old guilds there is, however, no other trace to be found in these modern representatives."

Are our modern trades unions the lawful successors of the old guilds? They may be their dwarfed, legitimate heirs; but they are only lopsided representatives of the Catholic guilds. Trade unionism is essentially different from the ancient guild system. The master craftsman of the guild owned all: tools, raw material, workshop and product. The modern workman owns nothing of the machinery, raw material, or finished product: the former master has become a machine tender.

Shall the past come back? Will the guilds be revived? Pope Leo XIII pleaded for their return, but under a modified form: "Such associations should be adapted to the requirements of the age in which we live—an age of greater instruction, of different customs, and of more numerous requirements in daily life." The guilds as they existed in the Middle Ages cannot be called back. Conditions under which a simplicity of industry could be carried on have entirely changed. Above all, the soul, the life of the ancient guild, has left the body of our working-classes: the one common faith in and an unquestioned obedience to Holy Mother Church are missing. We must look elsewhere for social reform in modern times.


ENDNOTES

1 Westminster Review, January, 1884.

2 Stolberg, Geschichte, vol. xv,

3 Cf. History of the German People, vol. i.

4 Some Ethical Phases of the Labor Question.

5 The Church of Our Father, by Canon Rock, vol. ii, p. 418.

6 On the History and Development of Guilds, p. 39.

7 Riley's Memorials.

8 English Guilds, from Original MSS., London, 1870.

9 Usura est, ubi amplius requiritur, quod datur. Corp. Iuris Can., C. 19 X de usura, 519.

10 Cf. Dublin Review, vol. iii.

11 Protestantism Compared with Catholicity.

12 Cf. Westminster Review, January, 1884.

13 Sam'ntliche Werke. Vol. 24.

14 L. c., vol. 59. 15 The Edinburgh Review, October, 1880.

15 F. Laurent, Etudes dans l'histoire de l'Humanite, vol. viii.


© American Ecclesiastical Review April 1903

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Tuesday, January 23, 2007

Toward Social Thinking

by Fr.Vincent McNabb


For the purpose of clear thinking on social matters, I venture to set down some thoughts on Socialism.

Very gravely I add they are not meant to be a defense of Socialism. They are merely social facts, the knowledge of which has been arrived at by a process of observation. I set them down as the astronomer tabulates and records his observed astronomical facts, not knowing what use may be made of them but feeling that it is his duty to record them whether they are used or not.

A late writer in an influential Catholic review maintained that absolution could not be given to a Catholic Socialist who came to confession because the policy of the Socialist party was secularisation. The argument, couched in the accustomed forms of the schools, was very persuasive. But on second thoughts it could be seen that the premises, which served to insure the conclusion desired of the writer, would also serve to justify not a few conclusions which the writer would disown.

Socialism is accused of wishing to a number of undesirable things. Indeed, the common method of disproving Socialism is to show by striking and detailed word painting that if Socialism became dominant in the Commonwealth, the state of things thereby introduced would be intolerable and even unjust.

(1) One of the first charges made against Socialism is that it would socialise everything and everybody and that it would therefore make slaves of us all, or at least of all except the State officials under whom we should all be regimented, case-papered, paid, fed, tendered and buried. This argument if carefully drawn by a man of feeling can be particularly effective. It is perhaps the locus communis which for years has left me not unmoved whenever I hear it.

But, on second thoughts, it appears that this inhuman programme which Socialism is expected to bring forth is already in great part realised and not by the Socialists.

Mr Belloc and others who are confessedly not Socialists agree that Socialism is committed to this dismal homogeneity and slavery. But they add that it is a thing in great part and essentially realised by existing political parties. One has only to read The Servile State to be haunted by the idea that not only existing Socialism but the existing Conservative and Liberal, and Democratic and Republican parties, are committed to a programme of socialised services which rest essentially on a basis of compulsory work, i.e. slavery.

Moreover, in such a thorough-going Monarchy as Germany, the number of social functions that have now become socialised are alsmost as many as most Socialists would claim for their Socialist State. Indeed, the formula of the most absolute monarchy "L'Etat, c'est moi" needs a change not of form but of content, to be the programme of every advanced party in modern political education.

All this is dramatically confirmed by the diagnosis made by Leo XIII of the actual state of social affairs. 'A small number of very rich men have been able to lay upon the teeming masses of the labouring poor a yoke little better than that of slavery itself.'(Rerum Novarum.)

It is quite evident that this existing state of thigns is substantially what Socialism is condemned for proposing to bring in! Moreover, it is equally evident that the state of things condemned by the Pope is not due to Socialism; but if attributable to any party, then to Conservatives, Liberals, Republicans or Democrats.

(2) A second plea for decrying Socialism is that it would secularise education.

Here as elsewhere in this paper no attempt is made to accept or deny these pleas although it is well known that a large portion of the Education Act of 19021 was inspired by a leading Socialist.

But anyone dread Socialism because it will secularise education? Has not education, even in these countries, been largely and dominantly secularised? In the United States public education is completely secularised. There it was a bourgeois revolution and not Socialism that brought in secularisation. In England the secular programme is officially Liberal.

If, then, a Socialist is to be refused absolution because his party would bring in secularism, how can absolution be granted in England to a Liberal whose part have an equally secular programme; and in the United States, to both Democrats and Republicans, who agree in accepting and defending the present secularism? At any rate, secularism is not something future to be dreaded but something present to be uprooted.

(3) A further argument against Socialism is that it would degrade women by taking women out into the spheres of public work

But statistics are at hand to prove that women workers are to be found in almost every sphere of labour; moreover, they have often been employed because being non-unionised they could be forced or persuaded to accept a lower rate of wages than men. This is most strongly confirmed by all kinds of investigators. Recently the Municipal Vice Commission of Chicago found that a great deal of the prostitution in their rich city was due to the abnormally low wages paid to girls in a number of employments. The present state of women is such a matter of shame that many of the arguments against the suffrage movement are pointless.

But what has Socialism had to do with the degradation of women? And if Socialists are not to be absolved for a crime they have not committed, why may absolution be granted to those by whom the crime has been either committed or approved?

(4) A further and most forcible argument against Socialism is that it would destroy the home. This argument is of great service in strengthening minds that see in the home the only hope of a nation's future. Any political party that threatens the home, no matter what its calim to social service, must be looked on as anti-social.

But, it may well be asked, has the home not already been threatened? Indeed, have the threats not been but too well realised and are not great masses of the workfolk wholly homeless. A room or two overcrowded with inmates can not be called a home. A house in such conditions and in such surroundings that the infant mortality is twice and thrice as much as in well-to-do neighbourhoods cannot be called a home. Yet the recent blue-book on the housing of Great Britain and Ireland has an eloquence of statistics proving that the homes of our country are not merely threatened but vigorously attacked and undermined.

Moreover, to repeat the argument of the previous section, woman's work has largely taken wives from their own homes and made them wives, not mothers. This is to destroy the home.

Now this again is not a future eveil to be dreaded, it is such a rooted present evil that any whole-hearted efforts to uproot it are likely to offer the features of a revolution.

Yet again, not Socialism but some other political or industrial policy has set up almost unnoticed this enemy of the home.

(5) Lastly, and this is perhaps the most urgent of all the pleas against Socialism, it is said that Socialism would destroy the inborn and inalienable right of property.

But if the right of property means, not that some men shall own all property but that all men shall own some property, one asks 'Where is the right of property existing in the world today?' Is the inalienable right of property kept in a state of things where vast numbers of work-folk have not a square yard of land and are never even more than a month from destitution? Is this inalienable right a fact in a state of things where by the testimony of a Pope 'a small number of very rich men have been able to lay upon the teeming masses of the labouring poor a yoke little better than that of slavery itself,' and where there are 'two widely differing castes ... one which holds power because it holds wealth and which has in its grasp the whole of labour and trade, on the other side there is the needy and powerless multitude, broken down and suffering' so that 'some remedy must be found, and found quickly, for the misery (i.e. want) and wretchedness pressing so heavily and so unjustly on the vast majority of the working classes'. (Rerum Novarum).

It is evident that this state of injustice whereby the vast majority of the working classes are in a position of misery is not exactly a state bsed on the right of property

For injustice is the forcible taking or holding of property. And it is evident that this state, based on the violent interference with the right of property, is not in any measure due to the political party called Socialism. It must therefore be due, either in its rise or maintenance, to the other political parties which Catholics freely enter without dread of being refused absolution.

As was said at the outset, this line of thought is not meant nor perhaps even fitted to be a defense of Socialism. It is merely an observed and recorded fact for the guidance of Social thinkers. If a Social thinker refuses absolution to a member of the Socialist party because the Socialist party would bring in a state of things, why does he not refuse absolution to the other political parties; for the state of things is already in existence and has been brought about or, at least, is being upheld by them?

It is evident therefore that there is some flaw in the course of reasoning which would withhold absolution on a probability and give it on a fact. Either the premises are not observed facts or the reasoning is amiss.

For the moment our task is to point out that somewhere there is a flaw in the chain of reasoning, with the hope that social thinkers will revise either their facts or their deductions.

Published in "The Tablet", Jan. 3, 1914

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Thursday, January 18, 2007

Liberal Economics vs. Catholic Truth

by John Sharpe



A FINAL DEFENSE OF DISTRIBUTISM

[Editor's Note: I would like to take this time to thank all those who contributed to this lively informal debate on the topic of Catholicism and economics, including Mr. Sharpe, Mr. Clark, Br. Bugnolo and Dr. Woods. To wrap up this current discussion and in response to numerous reader requests to hear from the Distributist side once more, Mr. Sharpe has been asked to provide a final rebuttal.]

A word of thanks to Mr. Miller of Seattle Catholic for the opportunity to respond to Mr. Clark's response to my response, etc., etc. I will attempt in what follows to summarize the results of our exchange, and point out where I think points which I made have been either conceded, missed, or misunderstood. Begging the reader's forgiveness, I will also touch briefly on several new arguments which were raised against the Distributist position, both by Mr. Clark and by Dr. Woods, who contributed to the debate after it was in progress. Those new points include the following: 1) numerous theologians have supported capitalism, 2) capitalism has reduced the gap between rich and poor and thus does not promote inequality, 3) Distributism would be productive of "big government," and, finally, 4) it is illegitimate to expect the free market or the science of economics to take morality into account, as both are fundamentally neutral. In what follows I also assume that readers are familiar, at least in general, with the articles that have been written by Dr. Woods and Mr. Clark in connection with this discussion.1

CONCESSIONS

To my mind, the following points were ignored and, therefore, conceded:

(1) Belloc's definition of capitalism. It was dismissed as "simplistic" by Mr. Clark, but we saw how it was also the definition of Pope Pius XI, who was probably not a simpleton. Speaking of the definition of capitalism, I also conceded to Mr. Clark that in modern terms the notion of "capitalism" does indeed imply a regime of free competition, as he suggested. This was and is central to my critique of capitalism. More on that later.

(2) Distributism a new theory. I maintained that Distributism was a new and awkward word for a very old theory, a theory of widely distributed ownership not only of material wealth in general, but of productive wealth specifically. I said, in fact, that "...the ideal, at which great statesmen from Solon of Athens to Leo XIII and Pius XI have aimed, is a State made up principally of flourishing and self-contained communities of small proprietors, and especially of small farmers or peasants." This too was not refuted. Mr. Clark only said, essentially, that capitalism didn't come from Protestantism; he provided no evidence to suggest that Belloc was wrong, however, in noting that the concentration of wealth characteristic of capitalist society resulted, at least in England, from a few unique events triggered by the Reformation — events which he details in his tidy Essay on the Restoration of Property. Those events were made possible, furthermore, by the breakdown of laws and structures which preserved the "Distributist" nature of society up to that point. More on Mr. Clark's other comments in this regard later. Suffice it to say that my contention that a society of many small owners, rather than a few big ones, has always been the ideal of great statesmen and sane thinkers, was never refuted.

(3) Radical equality and Socialism. Belloc maintained that the gross inequality of modern society, which has owners pitted against an essentially non-owning class, is too much to bear; in so stating he simply follows the Popes. (We'll see more of this in our brief look at the so-called "capitalism-creates-inequality" myth.) I pointed out in my original article, however, that Belloc admitted in several places of his Essay that inequality is natural in society and should be respected; his was not a scheme of radical leveling but one of defending the small owner. I also made it perfectly clear that Belloc opposed socialism as vigorously as he opposed capitalism. Furthermore, I looked in detail at the phrase — taken out of context by Mr. Clark — in which Belloc says that the state should own certain forms of property before those forms are left to the ownership of a few wealthy men; I demonstrated that such a statement was not only miles away from an advocacy of Socialism, but was rather completely consistent with the words of the Pontiff who had condemned socialism so vigorously!2

Just to be perfectly clear, I will reiterate: at no point and in no phrase of any of Belloc's writing does he demand radical, Socialist equality; at no point and in no phrase does he object to the fundamentally Catholic notion that society will always consist of varying degrees of inequality; at no point and in no phrase does he advocate the application of taxation to redistribute personal wealth to those who have less; at no point and in no phrase does he argue for repressively high, "tyrannical" taxation (to use Clark's word) — in fact he devotes an entire chapter of Restoration of Property (VI) to opposing high taxation. In so doing he is perfectly in agreement with the actual words (though perhaps not with Clark's unsupportable interpretation) of Navarette's statement, which Clark quoted: "The origin of poverty is high taxes. In continual fear of tax collectors, (farmers) prefer to abandon their land, so they can avoid their vexations." This is exactly what Belloc said!

In making these points I was and am trying to further illustrate the general vision behind Belloc's scheme in Restoration of Property. He desired no redistribution of wealth á la Marx; but he did advocate a defense of the small owner.

The burden of proof thus lies with Mr. Clark to demonstrate that Belloc advocated socialism. The only reply from Mr. Clark on this point was to insinuate that Belloc thought that the wage contract was fundamentally unjust — because Belloc referred to the "exploitation" of wage earners. But Belloc clearly respected the justice of the wage contract.3 For Mr. Clark to prove that Belloc advocated socialism — which was his original contention — we need more concrete, factual evidence from him than the assertion that "Belloc's terminology was eerily similar to that of Marx." Such a statement, in light of what I have demonstrated, is hardly a scholarly demonstration of Belloc's socialist sympathies.

(4) The Means of Production. I spent a section of my article explaining that Belloc specifically — and Distributists in general — has no objection to an entrepreneur being paid more for his efforts than that of the assembly line wage-earner. The Distributist objection to the capitalist scheme has to do with wages only tangentially, and is rooted more in how capital ownership is currently distributed among the members of society. Because of this current distribution, relatively few own the means of production, and the rest are compelled by the very structure of the thing to work for those few in exchange for a wage. This essential point — the very foundation of the Distributist premise — was and is never, ever refuted. Regardless of how both rich and poor have microwave ovens and TVs, and how an entrepreneur is entitled to be compensated more than a shoe repair man — provided he is truly providing a useful service to the community with his large, complicated, capital-intensive venture, the fact is that wage-earners cannot have the dignity, freedom, and independence of capital owners because they own no productive wealth with which they can themselves produce wealth for consumption. Pius XI called such a state "hand-to-mouth uncertainty," 4 and Pius XII called it "economic dependence and slavery which is irreconcilable with [a man's] rights as a person." 5 That's the beginning and the end of the point.

(5) Free competition. Another point which I made was that free or unrestricted competition cannot be the final, regulating factor in economic life. I also suggested that regulation and defense of private property from the destructive effects of unrestricted competition was not to regulate private property out of existence, but to defend it and protect it.6 The first point was made clearly time and again by Pope Leo XIII, Pope Pius XI, and Pope Pius XII, and the latter was affirmed with unparalleled explicitness by Pope Pius XI. Neither aspect of that observation was ever refuted by Mr. Clark either. He suggests that the government should stay out of regulating economic life, lest it become an "all-powerful leviathan," but that is hardly a response to a clear declaration by several Popes that "the right ordering of economic life cannot be left to a free competition of forces. For from this source, as from a poisoned spring, have originated and spread all the errors of individualist economic teaching" 7 (emphasis mine) We'll look quickly later on at the myth of "big government." Let it be reaffirmed here, that the Church has solemnly condemned unrestricted competition, and there is no refuting that.

(6) Profit. Mr. Clark chose not to address the profit aspect of my previous article. Another conceded point, evidently. The essence of my position was that profit is only licit from the Catholic standpoint as a means to an end — namely, the procuring of necessary goods for one's self and one's family, and that a desire for gain which is not circumscribed by that very specific intention is immoral and illicit, and thus also illegitimate as a principle of social order. This issue was only addressed in a related fashion by Dr. Woods, and I'll respond to those points very briefly below.

(7) The Social Doctrine of the Church. Another conceded point was my original contention that the fundamental tenet of the Social Doctrine of the Church is the idea that society should be an aid to virtue, not a hindrance. I maintained that a society which legally and publicly recognizes an unlimited "profit motive" — one unconcerned with how the amassing of productive wealth adversely affects the rest of society — is a society fundamentally disordered and inconsistent with Catholic teaching. I would argue that this is plainly and simply true, and therefore impossible to refute. Which may explain the absence of a refutation.

REBUTTALS

In several instances, Mr. Clark offered rebuttals to my original points. Dr. Woods additionally offered his responses to some of the observations that I made, in the pieces which he contributed to this debate. I would ask the reader to consider the following in response:

(1) The greatest minds of the Church. Mr. Clark claimed to be able to cite "fifteen references [to] pre-medieval and medieval Catholic economists," and complained that I quoted "exactly one Catholic prior to Rerum Novarum." He further lamented that I relied "almost exclusively on Hilaire Belloc, Chesterton, and some of the papal encyclicals."

Firstly, Clark's references to the "fifteen theologians" are — begging forgiveness for the terms — completely useless and irrelevant. He lists 15 names; he doesn't quote from any of them. The reader will forgive me if I do not take Mr. Clark's word for it that all 15 theologians were proto-capitalists.8 If he's so familiar with their work (albeit through an obviously liberal lens), why not quote them, at length, so that we too can learn that the Scholastic philosophers supported a massive concentration of productive property into a relatively few hands (a phenomena which, it should be remembered, Mr. Clark did not deny), perpetuated by a regime of unlimited economic competition? I defy anyone (!) to produce a single citation from any Catholic philosopher (who is not an admitted liberal like Bastiat) which says that a concentration of wealth such as we see today, created and/or encouraged by totally free competition, is a desirable state of affairs. No such quote is possible.

An additional fact to bear in mind is that the Church, in most cases throughout Her history, has reacted to historical circumstances and issued condemnations of social or theological trends after those trends took a wrong turn. St. Albert the Great's defense of private property is hardly an apologia for a concentration of wealth. How can we expect to hear fierce denunciations of economic rationalism/liberalism from clerics who lived before the problem had manifested itself socially or philosophically? When I said that the great minds of the Church would not have sanctioned Mr. Clark's praise of capitalism, I meant those minds who considered capitalism in retrospect, from a point in history after capitalism had developed. It is not a coincidence in my mind that those theologians who examined capitalism from a modern perspective were almost all of one mind in condemning it. For readers interested in this aspect of the question, they are encouraged to consult the writings of Fr. Heinrich Pesch, Fr. Oswald von Nell-Breuning, Fr. Bernard Dempsey, Fr. John Ryan, Dr. Amintore Fanfani, Dr. George O'Brien, Dr. Charles Devas, Fr. Matteo Liberatore, Fr. Denis Fahey, Fr. Edward Cahill, Mgr. Emile Guerry, and the numerous other Social Catholics who wrestled with the problem of the modern economy. Such a list should be enough to refute the implication that I, in a "misleading" and "unscholarly" fashion, meant to portray only Chesterton (whom I didn't mention once!) and Belloc as the Church's greatest minds on the economic question.

It is worth mentioning that the one theologian from whom I did quote in my previous article is, according to Holy Mother Church, our chief guide in matters economic. That one was St. Thomas Aquinas, who, as Pius XI taught, "is...the perfect theologian, [who] gives infallible rules and precepts of life not only for individuals, but also for civil and domestic society which is the object also of moral science, both economic and political." 9 (emphasis mine)

Finally, I will here point out that Mr. Clark grudgingly admitted that I quoted from "some of the papal encyclicals," as if to base myself on such sources were to condemn myself to the unscholarly oblivion of ignorance and naiveté. This is an argument about what Catholics should think about the economic order, and quoting the major encyclicals on economic problems isn't sufficient!?! Clark asserts that Pope Leo XIII "was no anti-capitalist." While Leo along with all the other popes, theologians, and Belloc (as we have noted) didn't impugn the legitimacy of a contract between a wage earner and an owner of capital, he and his successors most certainly condemned an economic order based upon unrestricted competition and rationalist principles! And the notion of unlimited competition is — according to Mr. Clark — a prime element of modern capitalism...an element condemned in most vigorous terms by Pius XI, in spite of Clark's contention that the social encyclicals intended "simply to state that employers should treat their employees as beings created by God." If such were the case, what are we to make of Pius XI's teaching that public authority can justly regulate what owners do or do not do with their property (49), that free competition must be controlled by the state or other legitimate authority (110), that wealth is immensely concentrated as a result of free competition (105, 107)...and on and on and on? To dismiss the teaching of Pius XI as applying merely to how employers are supposed to treat their employees is to grossly misrepresent the pontiff's teaching.

A final note on the encyclicals. Mr. Clark maintains that "Pope John Paul II is really the first modern Pontiff to delve into capitalism proper, and analyze it on its own merits." My interpretation of his meaning is that he is the first Pope worth quoting since he admitted the merits of capitalism, because his predecessors analyzed it in detail (Quadragesimo Anno is over 20,000 words long!) and found it wanting. Insofar as the statements of Pius XI and others which I have quoted refer to principle and not contingent facts,10 I am certain that all Catholics will continue to admit their binding force. I further trust we are all agreed that the Holy Father did not intend to contradict his predecessors.

(2) The history of capitalism. Mr. Clark maintains that Belloc's thesis must be rejected, insofar as Prof. de Roover has suggested that "Modern capitalism based on private ownership has its roots in Italy during the Middle Ages and the Renaissance." A couple of points in reply:

First, the thesis is not merely Belloc's. It is Weber's, Fanfani's, O'Brien's, and Fahey's. Space doesn't permit me to quote from them extensively, but I would be happy to provide more information as and when requested.

Second, the "Bellocian thesis" is not that the historical phenomena of division of labor, stock speculation, capital-intensive production and trade, and banking were created overnight after Luther nailed his 95 theses to the door of the Wittenberg cathedral. In England, at least, it is simply a fact that the concentrations of wealth which made "big business" possible resulted from, among other things, the confiscation of Church lands and the implementation of the Statute of Frauds passed after Henry VIII's break with Rome.

Additionally, as Mr. Clark said very clearly in his first article, capitalism implies the right to private property and free competition. One without the other would cease to be capitalism. So even in France, Italy, and other places where pre-Reformation concentrations of capital existed for the carrying out of large, capital-intensive operations, without the mentality of "unrestricted competition" which is today part of the essence of the "free market," capitalism as we know it would not have existed. This is a point which Clark's source, Prof. de Roover, seems unwilling to grapple with in most of his writings. It took a change in mentality to foster capitalism as we know it, and that change of mentality was furthered by an emancipation of morals from the authority of Rome: i.e., Protestantism.

(3) Capitalism doesn't create inequality. I will ask for the reader's indulgence if I respond with slightly more than, "Yes, it does."

This is primarily Dr. Woods' contention, that the "capitalism-creates-inequality myth" is simply an "ignorant canard." He emphasizes the point in two different ways: first, by reminding us that the destitute were employed by the factories, and so they would otherwise have perished, were it not for the labor-creating factories; second, by reminding us that both rich and poor classes today have TVs, microwaves, radios, access to air travel, etc., etc.

To this first point I simply respond by saying that the massive and rapid growth of the factory system wouldn't have been possible without the destruction of some aspects of the Distributist society which existed beforehand. If the factories are to be thanked for providing employment for the hungry masses, the question which comes to mind is: "Where did all the hungry masses come from in the first place?" It is a stunt of circular reasoning to suggest that they failed on their land or at their trade and so had to be employed by the factories to survive, because 1) they lost their land in the first place as a result of events that Belloc mentioned (and that we have noted briefly above), and 2) their home-grown trade would have been made ineffective or impossible in raw competition with a capital-intensive, assembly-line method of production which could turn out hundreds of times the amount of goods, at far cheaper costs — which is the very problem which Distributism seeks to remedy! In essence, the balance of the small, predominantly cottage economy was upset by the triumph of the factory system on a large scale, combined with a liberal, "no-holds-barred" economic philosophy, and the combined result was the wholesale transformation of land-owning peasants into employees.

It should, finally, be born in mind that the question of wealth distribution is not a question of who has the most toys, but rather a question of who possesses productive wealth, which can be worked to generate the wealth to live on. It is this kind of wealth which is mal-distributed, and this kind of mal-distribution thereof which Distributism, with the Popes, seeks to remedy. Neither Leo XIII, nor Pius XI, nor Pius XII lamented the "sad lack of modern conveniences among poorer families, the scarcity of TV- and microwave-owning families who lord their gadgets over the poor, along with the gross inequality in health standards." Pius XI called the non-owning workers the "proletariat" — propertyless. The non-owning workers (like most all of us) possess no productive property of their own to make their labor productive of wealth absent someone else's capital, thus producing the precarious state of "economic dependence" (Pius XII's phrase) and "hand-to-mouth uncertainty" (Pius XI's). That such a state still exists today should be obvious from current headlines, which almost daily announce a new round of layoffs in the thousands from corporations both large and small.

Pius XI even concedes — in anticipation of Dr. Woods' objection — that "the status of non-owning workers is to be carefully distinguished from pauperism," and that "the workers can no longer be considered universally overwhelmed with misery and lacking the necessities of life." 11 But he nevertheless maintains "that the immense multitude of the non-owning workers on the one hand and the enormous riches of certain very wealthy men on the other establish an unanswerable argument that the riches which are so abundantly produced in our age of 'industrialism,' as it is called, are not rightly distributed and equitably made available to the various classes of the people" 12 (emphasis mine), and that this inequality is a "fruit that the unlimited freedom of struggle among competitors has of its own nature produced" 13 (emphasis mine). So much for the "ignorant canard."

(4) Profit. Dr. Woods took the lead in rebutting this point, as well, with what I assume was somewhat of a justification of "the profit motive" in suggesting that "profit signals...make for peaceful social cooperation and the most efficient use of scarce resources." Elsewhere he asserts that "the morally acceptable desire for profit leads to spontaneous social cooperation."

I have serious qualms with both of those statements. That our system produces "peaceful" social cooperation is only true insofar as most of us aren't murdering one another to buy sugar and flour. But it is to contradict the prevailing spirit which demands that a business continuously increase its "market share" (at who's expense, we wonder...?) or go under. How many small business have to shut their doors because of the big ones before we abandon the "peaceful social cooperation myth"? Doubtless Dr. Woods would consider the evacuation of a small farm in the face of agri-business a "signal from the consumer" that high broccoli prices will no longer be tolerated, but has it occurred to him that the low prices wouldn't be a factor if the regime of unlimited competition weren't the prevailing economic doctrine? What if everybody more or less sold broccoli at the same price, and the question turned on not who could undercut the competition, but simply "how much broccoli do we need?"

Finally, to say that the "desire for profit" is "morally acceptable" is to frame the question with certain definite assumptions which do not factor in modern economic life. That wage-earners bring home a pay check to meet basic needs — and thus are behaving morally in so doing — is a stark fact of life. That CEO's bring home a salary several hundred times that of the average worker has little to do with need, and everything to do with avarice. So too for the industry that insists upon expanding — for "market share," "dividends," or pure "profit" — to the detriment of the small holders of property who otherwise would have maintained themselves in reasonable comfort while working on their own productive property. It is only a system of pure liberalism that would suggest that such avarice should be ignored by the "free market" as solely a personal religious or moral issue, in which economics has no role to play. Such would be pure rationalism applied to political and economic life, of the kind denounced by Leo XIII and all the recent Pius's. Pius XI referred, in fact, to the salutary role that the state could play in redressing such grievous imbalances in his encyclical — believe it or not! — against communism:

...the wealthy classes must be induced to assume those burdens without which human society cannot be saved nor they themselves remain secure. However, measures taken by the State with this end in view ought to be of such a nature that they will really affect those who actually possess more than their share of capital resources, and who continue to accumulate them to the grievous detriment of others.14 (emphasis mine)

NEW ISSUES

Several new issues were raised both by Mr. Clark and Dr. Woods in their responses to the Distributist position, and I will tackle those now, as briefly as I can.

(1) Moral neutrality of economics; economics a value-free science. Clark's contribution to this theme was to compare capitalism to an automobile, implying that it is a neutral tool to be used for good or evil. Dr. Woods elsewhere suggested that the problem of greed is "a matter of moral philosophy rather than economics;" and he further explained that economics is a "value-free" science which doesn't tell people how much money they can make or how to employ their wealth.

I answer that: All of these statements imply that the creation of wealth for use by man is simply a matter of technique, science, and practical knowledge — as if wealth could be created by this or that system interchangeably and inconsequentially, as if it were simply a choice in woodcarving between this or that knife, this or that file.

The fact is, however, that an economic order is not a lifeless piece of matter, to be manipulated according to forces of nature governing that inanimate matter. It is a scheme whereby living, animated creatures produce the wealth necessary for life on earth, to further their practice of virtue and thereby (God willing) attain heaven. Thus there can be no "limitless" wealth creation because the end of wealth creation is subordinate to the end of man, which is God. Wherever limitless wealth creation runs up against moral concerns — like the right of a "competitor" to possess his productive property in peace, the right of labor to a fair share of the fruits of production, the right of labor to be treated as something essential to life and dignity, rather than as a commodity — then the moral concerns must triumph, and economic concerns take a subordinate place. Anything else is simply not Catholic.

Such a conclusion is not pie-in-the-sky dreaming, or naïve wishful thinking. It is Catholic science, backed up by a scholarly tradition much longer than that of rationalist and liberal economic "science." 15 For a truly Catholic economic understanding maintains that the art of acquiring wealth (money-making) or producing wealth (this could be any number of arts: manufacture, agriculture, etc.), is limited by the science of using wealth (Political Economy); the science of using wealth is subordinate to political science which looks after the common good of the nation as a whole; and the science which looks after the nation is itself a moral science.16 "The best usage of the present time," says the Catholic Encyclopedia, "is to make political economy an ethical science, that is, to make it include a discussion of what ought to be in the economic world as well as what is. This has all along been the practice of Catholic writers. Some of them even go so far as to make political economy a branch of ethics and not an independent science." 17 Elsewhere the Encyclopedia emphasizes the point:

Ethics is distinguished from the other natural sciences which deal with moral conduct of man, as jurisprudence and pedagogy, in this, that the latter do not ascend to first principles, but borrow their fundamental notions from ethics, and are therefore subordinate to it. To investigate what constitutes good or bad, just or unjust, what is virtue, law, conscience, duty, etc., what obligations are common to all men, does not lie within the scope of jurisprudence or pedagogy, but of ethics; and yet these principles must be presupposed by the former, must serve them as a ground-work and guide; hence they are subordinated to ethics. The same is true of political economy. The latter is indeed immediately concerned with man's social activity inasmuch as it treats of the production, distribution and consumption of material commodities, but this activity is not independent of ethics; industrial life must develop in accordance with the moral law and must be dominated by justice, equity, and love. Political economy was wholly wrong in trying to emancipate itself from the requirements of ethics.18

Readers who are interested in further defense of this subject are asked to see Appendix II.

(2) A note on "Big government." All this talk of "government regulation" makes modern opponents of Distributism nervous that Big Brother (he's really our Uncle) will exercise a sweeping and oppressive amount of authority to make sure that the rich don't get too rich. This fear is in one sense well-founded, insofar as modern "liberal" governments have a long and robust track record of useless (and usually nefarious) encroachments on the just liberties of their citizens. It should be borne in mind, however, even as we concede this fear, that the massive coercive power of the modern state is itself a violation of the Catholic doctrine of subsidiarity, and so the State that the Pontiffs imagine is the whole body of small and intermediate bodies which make up the whole fabric of the civil authority. Thus the Distributist question, in practice, becomes one of "what can we accomplish today, in present circumstances, to live economically, as well as morally, like Catholics." Such is a separate question from the theory, which we have been debating in these pages.

On the other hand this fear is completely unfounded and polemically irrelevant. To argue against the use of a thing from its abuse is a very sophistical procedure, to use the phrase of the Thomist, Fr. Matteo Liberatore. Pius XI and the Distributists aren't arguing for oppression, they're arguing for the defense of the weak from the oppression of the economically strong. Critiquing an implementation of Distributism — or Catholic economics generally — which includes the "power to the state" part but leaves out the question of what exactly the state will be empowered to do, is not to criticize Distributism at all, but rather to defeat a straw man with the hopes that the unsuspecting will dismiss the real man along with him. Finally, if Pius XI's idea of the State justly regulating economic life gives Catholics the uncomfortable sense that their "rights" are being violated and their "freedom" is being curtailed, then it is not the Pope who has to adjust his view of what the state can and cannot do; it is Catholics who must recalibrate their notion of "rights" and "freedom" to correspond with the Teaching of the Church.

It is worth noting at this juncture that we can't have our cake and eat it too, nor can any of my opponents. Dr. Woods suggests that Distributism is a bad idea today because "theologians from 800 years ago couldn't have imagined the evil of the modern state." I would humbly submit to the reader that they couldn't have imagined the evil of modern capitalism either, and thus the citations from 13th century Thomists and 15th century Jesuits are wholly irrelevant as a vindication of modern capitalism.

(3) Emigration. Mr. Clark says that high tax will drive out the entrepreneur: "the state would progressively tax the ablest entrepreneurs to the point where they can no longer increase their profits and wealth." Two very simple answers:

1) The state will not tax entrepreneurial skill; the state will tax an amassing of wealth which begins to eliminate the ability of others to own productive property.

2) If said entrepreneurs are unhappy because their profits and wealth are limited, I bid them good riddance. Mr. Clark makes the point for me: "If your principle is that capitalists are greedy men, who care about nothing except profits, why would they stay in a country that limits the amount of money they can make? The ablest entrepreneurs will move somewhere else, leaving those who have never run businesses with the job of running businesses." I will simply reply to the final sentence with the remark I made in my earlier article. It is a strange thing that our pre-capitalist ancestors were capable of pulling off such feats of grandeur like constructing cathedrals when they were faced with the oppressive, anti-competitive restrictions of the Guild System, which allegedly wrecks all entrepreneurial spirit. Could it be that "social cooperation" results more from socially sanctioned and encouraged cooperation than from "survival-of-the-fittest" economics?

(4) Trade. Mr. Clark suggests that international trade will be impossible in a Distributist society.

I reply: That's not true. It will occur where necessary, because the purpose of trade is not to allow a foreign country to destabilize prices and the entire economic order by importing cheap goods produced by cheaper labor, where those goods are already produced by the home country; the purpose is to supply what is naturally lacking to that country. In other words, the Thomistic justification for international trade is not for Chinese shoemakers to put American shoemakers out of business, but, according to Clark's own citation, to supply a need where a country cannot supply the same need on its own.

Unfortunately, this technique — of quoting someone and then completely and misleadingly reinterpreting it — is typical of Mr. Clark's style. He suggests that trade is in and of itself worthwhile and justifiable, and thus he laments that Distributism would allegedly make trade impossible. But the citations he produces all say that trade supplies a need which the city cannot supply on its own. Most erroneous is Clark's statement — allegedly a conclusion from St. Thomas: "The perfect city is one that engages in trade." But St. Thomas didn't say that. He said that the city will make use of trade where necessary, but that the ideal city will tend towards self-sufficiency, to the exclusion of trade altogether. I quote here the entire passage to illustrate the degree to which St. Thomas is misrepresented:

The more dignified a thing is the more self-sufficient it is, since whatever needs another's help is by that fact proven to be deficient. Now the city which is supplied by the surrounding country with all its vital needs is more self-sufficient than another which must obtain those supplies by trade. A city therefore which has an abundance of food from its own territory is more dignified than one which is provisioned through trade.19

Furthermore, St. Thomas has harsh words for a society in which most if not all of the citizens are mixed up in commerce, as all of us are. His description of such a society is eminently applicable to our time:

If the citizens themselves devote their life to matters of trade, the way will be opened to many vices. Since the foremost tendency of tradesmen is to make money, greed is awakened in the hearts of the citizens through the pursuit of trade. The result is that everything in the city will become venal; good faith will be destroyed and the way opened to all kinds of trickery; each one will work only for his own profit, despising the public good; the cultivation of virtue will fail since honor, virtue's reward, will be bestowed upon the rich. Thus, in such a city, civic life will necessarily be corrupted.20

A final comment on trade. Clark's example illustrates the inherent wisdom of Distributism. He suggests that trade will be impossible in the event that certain goods are manufactured at home and the foreign commodity threatens to undercut them in terms of price. Indeed so. For the Distributist perspective maintains that the integrity of the national economy, and the livelihood of individual men and women which results from their practice of a trade or craft, is more important that the capitalist's need to "expand his market" or "increase his market share." There can be no question that these two mentalities are one hundred percent at odds, and that the Distributist thinks of men and nations whereas capitalism thinks only of money.

A CONCLUDING NOTE ON THE SOCIAL VISION OF THE CHURCH

At the risk of repeating myself, I beg leave to remind readers that Distributism does not — as Mr. Clark suggests — intend to represent itself as a sine qua non of a moral society. It does however claim to be an economic system which is consistent with the demands of morality and the Social Doctrine of the Church. Insofar as my comments on the Social Doctrine of the Church were ignored by those attempting to refute the Distributist position, I offer in closing an expanded recapitulation of where the Distributists are coming from in terms of that Doctrine.


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Distributism is broadly thought of, by its advocates, as an implementation of the Social Doctrine of the Church. It is so because it is a program that is consistent with the natural law and, because, in the final analysis, it will help man along the path to Heaven rather than throw him off it.

The essence of the Social Doctrine is that society is a means to an end. The temporal common good — the moral and material goods of this life — which it is society's duty to protect and foster, serves ultimately another end: the Eternal Salvation of men.21 As a result, every law, every custom, every ordinance of the earthly community is salutary insofar as it makes man's journey to Heaven easier, and is disordered whenever it makes that journey more difficult.

St. Thomas made this point explicitly clear in his instruction to the King of Cyprus: "it pertains to the king's office to promote the good life of the multitude in such a way as to make it suitable for the attainment of heavenly happiness, that is to say, he should command those things which lead to the happiness of Heaven, and as far as possible, forbid the contrary." 22 He says in his treatise on law in the Summa that "The purpose of human law is to lead men to virtue, not suddenly, but gradually." 23 He concedes, of course that the law cannot forbid all vices, nor command all virtues, but this is a far cry from saying that the law is indifferent to virtue and vice, and seeks only to "preserve the peace" so that man can do what he pleases, as both new and old liberals tell us.

It was very correctly, if unintentionally, said by Dr. Woods recently that the essential point is the relationship between the law and morals. Someone had written to him "to point out what Distributists and other critics of the market consistently fail to acknowledge (sic): 'No one claims that anyone can, morally speaking, do simply whatever he wants with his property; the question is over exactly which uses are immoral uses, and which of these immoral uses ought also to be illegal ones.'" The point is, rather, one which Distributists, with the Popes, consistently bear in mind; the difference is that the Distributists offer a Catholic answer to the question, rather than a liberal one.

As we have seen, Pius XI referred specifically to Leo XIII's teaching on the state and economic life as "boldly breaking through the confines imposed by Liberalism" 24 (emphasis mine). His own teaching was the same. Acknowledging the true human inclination towards evil as stemming from Original Sin, he nevertheless affirmed that the "unquenchable thirst for riches and temporal goods, which has at all times impelled men to break God's laws and trample upon the rights of their neighbors...on account of the present system of economic life, is laying far more numerous snares for human frailty" 25 (emphasis mine). That system could have been reformed, he says, by "strict and watchful moral restraint enforced vigorously by governmental authority," 26 but it was not, and it has left us with a "whole scheme of social and economic life [which] is now such as to put in the way of vast numbers of mankind most serious obstacles which prevent them from caring for the one thing necessary." As such, that system must either be condemned, or the Social Doctrine denied.

This point is often lost on the opponents of Distributism, who insist that economic life is neutral and that the creation, distribution, consumption, and exchange of wealth is simply a technical process, which is affected by morality only insofar as the individuals who interact with that process choose to allow moral considerations to enter into their thoughts and actions. Such a mindset, whether the root of an erroneous conception of economic science, an infatuation with Austrian economics,27 or a general absorption of the prevailing liberalism which has always, unfortunately, been part of American life, is fundamentally false. It is an expression of that "body of economic teaching far removed from the true moral law" which developed from "the principles of rationalism" and which, contrary to every Catholic sense of the purpose of law, civil life, and the social order, gave "completely free rein...to human passions." 28

The alternative is a conception of temporal life which recognizes the role of law and society in restraining human passions, to the extent possible and appropriate, and guiding human life, such that the whole social fabric becomes a help to salvation.

In light of this most important of all truths of Catholic Social Doctrine, it should be easy to see that Distributism is consistent with the Catholic economic vision insofar as it subordinates economic life to the ultimate purpose of man's life. It does not curtail the right of a man to own and use his private property; its entire program is designed to safeguard and defend that right, and to ensure that most if not all in society are able to benefit from it, in a matter befitting their dignity and independence as man, and not merely as potential employees. But defending private property assumes that there is something to defend it against: which is the notion that private property is an end in itself, to be amassed and multiplied and owned without limit.

"The art of amassing wealth," said St. Thomas, "which is solely concerned with money, is infinite." 29 Where that art is pursued for its own sake, where it is governed by a "profit motive" which possesses no built-in limit but is rather an end unto itself, it leads simply and directly to yet further desire for wealth: "Hence he that desires riches, may desire to be rich, not up to a certain limit, but to be simply as rich as possible." 30 The incarnation of that mentality is the modern economic system which not only encourages (by its philosophy) the unlimited acquisition of wealth, but sanctions (by its practice) an expanding field of ownership by a few at the expense of widespread and distributed ownership by many. It is this scheme of things that Distributism opposes, and for which it offers a remedy.

I have often remarked that modern society, cut off as it is from the Moral Law, is simply an example of institutionalized Original Sin. It does not reflect the Truth, but is rather more often than not an incarnation of error and sin. An interesting illustration of this is found in the hypothetical exchange of Article 1, Question 77, of the second part of the second part of St. Thomas's Summa. In attempting to defend the "buy low, sell high" mentality in all circumstances, without restriction, the Objector says that what is common to all men would seem to be natural, and thus cannot be sinful. He continues, attempting to cite St. Augustine in his defense: "Augustine relates that the saying of a certain jester was accepted by all, 'You wish to buy for a song and to sell at a premium.'" St. Thomas's reply is illustrative, and reveals the essential flaw with our entire economic outlook. The Angelic Doctor further quotes St. Augustine: "'this jester, either by looking into himself or by his experience of others, thought that all men are inclined to wish to buy for a song and sell at a premium. But since in reality this is wicked, it is in every man's power to acquire that justice whereby he may resist and overcome this inclination.'" "Hence it is evident," St. Thomas concludes, "that this common desire is not from nature but from vice, wherefore it is common to many who walk along the broad road of sin." Institutionalizing this desire to buy for a song and sell at a premium is the glory of modern capitalism. Replacing this regime with one that encourages virtue, not merely internally but also by the very fabric of society, is the aim of the Distributists and all Social Catholics, who hope both for the Restoration of Property to the non-owning masses, and the restoration of true economic science, subordinate to the real needs of man and to the just decrees of God.


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Appendix I - a note on the "libertarian" Scholastics

In addition to citing the works of the Austrian economists, many of the opponents of Distributism are fond of citing the works of the Spanish Jesuits of Salamanca in evident defense of their liberal economic positions. However, Dr. William F. Campbell, a retired Professor of Economics with Louisiana State University, and current secretary of the Philadelphia Society, stated recently that, "Libertarians often find the quotes they are looking for in treatises on natural law which include materials on property and contracts. Unfortunately they are often taken out of context of the whole juridical and political philosophy of which they are a part. It is similar to saying that Aristotle is a libertarian because he stresses the commonsense arguments for private property."

The problem is that we're at the mercy of the pro-capitalists who quote St. Bernardine, St. Albert, St. Antoninus, the Spanish Scholastics, etc., because none of their works are available in English in complete form. Most of them quote from Alejandro Chafuen's book Christians for Freedom — heartily recommended by Dr. Woods in his latest article, which allegedly demonstrates that the late Spanish Scholastics were proto-Capitalists of the liberal and/or libertarian variety.

Dr. Chafuen's work, however, should be taken with the proverbial grain of salt. His work is certainly not the absolute standard against which Catholic's economic views should be measured. Firstly, he is — now for over 20 years — a member of the Mont Pelerin Society, a notorious exponent of the free-for-all liberalism of the classical economists, which was condemned by the Church time and again as rationalism was making its way across Europe like a veritable plague during the 18th and 19th centuries; and that rationalism is exactly the kind which inspires liberals and libertarians who are imbued with the erroneous notion that economics can be treated as a science independent of morals, and the role of the state should be that of a mere "watchdog" guaranteeing the maximum of license to the maximum of individuals.

Secondly, like many others arguing that the Scholastics were "proto-capitalists," he — at least in some instances31 — omits the context surrounding his citations from the allegedly pro-capitalist theologians. As an illustration of this, I offer the following. In an address to the Philadelphia Society in 1997, he made the claim, while discussing the legitimacy of making a profit based upon information unknown to other participants in the market, that the modern economist Israel Kirzner had come to this same conclusion as St. Thomas Aquinas: "Failing to divulge information to others (without engaging in misrepresentation) may not be very noble; it may even, under certain circumstances, be deemed to be downright disgusting; but it constitutes neither robbery nor fraud." Well, in the right context the statement may be very true. In another context, however, it is completely false. St. Thomas taught, for instance, that a seller of an item which is defective, when the defect is not obvious, must declare outright the item's defect and adjust the price downward accordingly; failure to do so would render the sale "fraudulent." 32

It is perfectly legitimate, and even obligatory if we're interested in the truth, to ask the following question: How many of the other isolated statements, offered in defense of the supposed capitalist sympathies of the great Catholic theologians of the past, have really no bearing whatsoever on the question at hand, or even misstate the actual position of those theologians?

Examples of this phenomena abound: St. Bernardine and St. Antoninus are often claimed as part of the capitalist/free-market camp. Never mind the fact that St. Bernardine condemned the practice of selling a product at a lower price than is normally established as unjust toward other participants in the market who attempt to sell at the established price (how pro-capitalist is that?), and that St. Antoninus wanted the just price of major commodities to be fixed by the state as an inducement to honest trade.33

We should be careful to accept the economic doctrine of the Church only from those who have an unsullied reputation for orthodoxy in all areas of Catholic teaching, not excepting politics and economics, and leave it to the capitalists to prove that these random, isolated statements from the late Scholastics and others have any relevance in a debate about the licitness of the modern economic order in light of the Faith.



Appendix II - further notes on the true economic science

The amount of material on truly Catholic economics abounds. I offer here some further observations for those who wish to explore the topic in greater detail.

Devas, for instance, in his Political Economy, says:

If we are agreed on the true philosophical view of the nature and destiny of man and of his surroundings, we ought to have little difficulty in agreeing on the position of economics among the sciences. It is a part of moral philosophy or ethics, which, in the widest sense, is itself that part of philosophy which regards the moral order.

And Liberatore, in his Principles of Political Economy, maintains that "Political Economy is of its nature subordinate to Political Science, [and] it is consequently subordinate to Moral Science, because Political Science is intrinsically and essentially dependent on Moral Science." The essential point is that for a Catholic, economics is not simply a collection of formulas, charts, graphs, and equations, built out of collections of data or abstract musings upon "how can we make the most stuff," but rather the science which has for its aim the satisfactions of man's material needs in conformity with the truth about man's final destiny and his duty upon earth to pursue it.

Hear again the Catholic Encyclopedia: It is for this reason that the Encyclopedia further states in the same entry that

...the State has to exercise important economical functions. It must protect private property and see to it that in man's industrial life the laws affecting justice be carried out in all their force and vigour. But its duties do not stop here. It should pass such laws as will enable its subjects to procure what is needed for their respectable sustenance and even to attain a moderate competency. Both excessive wealth and extreme poverty involve many dangers to the individual and to society. Hence the State should pass such laws as will favour the sturdy middle class of citizens and add to their numbers. Much can be done to bring about this desirable condition by the enactment of proper tax and inheritance laws, of laws which protect the labouring, manufacturing, and agricultural interests, and which supervise and control trusts, syndicates, etc.

Noteworthy — but not surprising — in the above are the facts that (1) the duties of the State are summarized under the entry for the word "ethics," and (2) enumerated among those duties are the regulation of economic life towards the common good of the whole.

A final point. In a recent article Dr. Woods suggested that the Distributists err by demanding that the economic science reckon with moral issues: "This, I think, is one of the places where Distributists commit an error. They are indicting economics in general and the free market in particular for not doing what they were never intended to do. The market does not prevent people from using their wealth badly; nor does it possess a built-in limit on the amount of wealth that someone can acquire. Neither does the discipline of economics itself have anything to say about these matters, which properly belong to moral philosophy." Dr. Woods misses the point here at several levels.

1) Distributists don't attack economic science generally; they attack the value-free perversion of economics while defending its integrity as a science subordinate to ethics. They don't deny economic law; they refuse to concede that man should be crushed by abstract and rationalist economic law, the way he is crushed by the law of gravity, should he find himself under a falling rock! For Distributists, economic law is, as we have seen, fundamentally subordinate to moral law, which is the supreme law in all fields — including economics — in which human free will is the operative principle.

2) They don't demand that the free market provide moral constraints; they in fact concede that the free(-for-all) market provides nothing of the sort, and this is in fact one of its flaws!

3) They don't demand that an individual man be told what to do with his wealth. They demand that moral limits be observed in the workings of the economic order. So if there is in fact an inviolable moral right for a man to possess private property, then a system that deprives most of an opportunity to own productive property because of its tendency, in the name of the almighty "free market," to concentrate that property, is a system which violates the moral law. And no lengthy dissertation about efficiency and productivity can change the fact that if the right of all to possess private property is a fundamental moral tenet of the Catholic economic position, then an economic system which facilitates the continual violation of that moral tenet must bend to the moral law itself.

4) Finally, Distributists don't demand that there be a limit to the amount of wealth that a man can make (I made this point in my original reply to John Clark; certainly Dr. Woods missed it, and he is not intentionally ignoring the issue). They demand that there be a limit to the concentration of income-generating property into so few hands that most others be compelled to work for a wage rather than with their own share of productive property. It's an essential distinction (I realize I'm repeating myself), and one which Belloc makes quite clearly in Economics for Helen: between wealth for consumption and wealth for future production (i.e., capital). If a family is to sustain itself securely and independently, it has a right to some sufficiency in possession of the latter.



Appendix III - A note on the alleged wisdom of the Austrian economists

Many of the critics of Distributism repeatedly cite the words of Murray Rothbard, Ludwig von Mises, and others of the Austrian school in defense of their position. This infatuation with Austrian economics is indeed a strange phenomenon among Catholics, but it makes sense to some limited degree. The modern libertarians, who trace their economic roots to the Austrian school, have some very intelligent things to say, and I find myself agreeing with many of their conclusions about the modern world (though usually not for the same reasons). They oppose interventionist American foreign policy, and so do I; so should all Catholics. They oppose fractional-reserve banking and favor sound monetary policy; so do I, and so should all Catholics. They oppose an unnecessarily big national government; so do I, and so should all Catholics. They oppose Socialism; so do I, so did Belloc, and so should all Catholics.

But a failure to understand and analyze the "why" behind their position, and substituting for that analysis a naïve, blanket acceptance of all of their utterances is also impossible for a Catholic. The Austrian economists were liberals, plain and simple, following on the heels of the French Physiocrats and the liberal English Political Economists. They opposed socialism not because it violates the natural law as taught by true philosophy and confirmed by Revelation, but because it is less efficiently productive of material wealth than the free market. This is not the Catholic critique of socialism. Furthermore, the original Austrian crusade was to assert the validity of economic "law" against the German Historical School of economics, which maintained that such laws were a fiction. But the "laws" which the Austrians maintained have nothing whatsoever to do with the Natural Law of philosophical realism and the Catholic Faith.

It should not be a surprise, then, that the Austrians display a woeful ignorance of the ideas and principles which underlie the Social Doctrine of the Church, based as it is upon the philosophical and religious Truth about man and society. Von Mises's ignorance of the very notion of a truly Catholic Social Order is evident in the following little snippet, among others, from his famous work, Socialism. Here he attempts to explain the antagonism displayed by the Church toward Liberalism, from a standpoint which is (obviously) profoundly anti-Catholic in spirit, shallow in its reasoning, supremely ignorant of the Faith, and therefore unable to conceive of a Creed which transcends the worn-out poles of Left and Right:

Historically it is easy to understand the dislike which the Church has shown for economic liberty and political Liberalism in any form. Liberalism is the flower of that rational enlightenment which dealt a death blow to the regime of the old Church and from which modern historical criticism has sprung. It was Liberalism that undermined the power of the classes that had for centuries been closely bound up with the Church. It transformed the world more than Christianity had ever done. It restored humanity to the world and to life. It awakened forces which shook the foundations of the inert traditionalism on which Church and creed rested. The new outlook caused the Church great uneasiness, and it has not yet adjusted itself to even the externals of the modern epoch. True, the priests in Catholic countries sprinkle holy water on newly laid railways and dynamos of new power stations, but the professed Christian still shudders inwardly at the workings of a civilization which his faith cannot grasp. The Church strongly resented modernity and the modern spirit. What wonder, then, that it allied itself with those whom resentment had driven to wish for the break-up of this wonderful new world, and feverishly explored its well-stocked arsenal for the means to denounce the earthly struggle for work and wealth. The religion which called itself the religion of love became a religion of hatred in a world that seemed ripe for happiness. Any would-be destroyers of the modern social order could count on finding a champion in Christianity.

Liberalism had "transformed the world more than Christianity had ever done[, and] restored humanity to the world and to life." How charming. Obviously the old days of Workingmen's Guilds and economic life properly subordinated to morals were devoid of life and humanity; true enough, insofar as moral, legal, and canonical limits that are active in the social fabric, and not simply a matter of private conscience, extinguish the "life" of license which all true liberals long for.






FOOTNOTES:
1 Woods, Dr. Thomas, "Piety is no Substitute for Economics," "Three Catholic Cheers for Capitalism," and "Economics and Profit: A Final Word;" and Clark, John, "Distributism as Economic Theory," and "The Capitalist Response." Dr. Woods' articles are available at http://www.lewrockwell.com/woods/woods-arch.html, and Mr. Clark's at http://www.seattlecatholic.com/articles.html.
2 "...certain kinds of property, it is rightly contended, ought to be reserved to the State since they carry with them a dominating power so great that cannot without danger to the general welfare be entrusted to private individuals. Such just demands and desires have nothing in them now which is inconsistent with Christian truth..." Quadragesimo Anno, 114-115.
3 In fact in his essay "The Faith and Industrial Capitalism," Belloc in fact laments the impossibility of a binding religious condemnation of the capitalist economic arrangement; he concedes the justice of a wage contract quite clearly (as would be expected of a man who a faithful Catholic and not an idiot): "What is there [in Catholic morals] to prevent my offering [my] stores of livelihood to destitute men on condition they work my machine...?"
4 Quadragesimo Anno, 61.
5 Christmas Message, 1942.
6 In my original article I made it explicitly clear that Pius XI taught this exactly; cf. QA, 16.
7 Quadragesimo Anno, 88.
8 Readers are asked to consult Appendix I if they desire more information on the alleged proto-capitalism of the Late Scholastics.
9 Studiorum Ducem, 20.
10 Where Pius XI was referring to facts, such as the concentration of wealth during his time, readers are kindly directed to the Shared Capitalism Instutite (http://www.sharedcapitalism.org/scfacts.html) for a look at just how bad the problem remains.
11 Quadragesimo Anno, 60 and 59.
12 Quadragesimo Anno, 60.
13 Quadragesimo Anno, 58.
14 Divini Redemptoris, 75.
15 For the record, I am not claiming, nor would any of the Distributists, that economic study, research, analysis, whatever, cannot produce and has not produced useful insights as to how man might be a more efficient creator of wealth, in a strictly technical, mechanical, and truly "value-free" way (if it even makes sense for a Catholic to use such a term; I would argue that it does not. In both Devas's and Liberatore's texts on political economy can be found a lengthy discussion of what separates art from science. Generally speaking, art deals with technique, science with knowledge based upon first principles. No doubt we are very smart, in part thanks to the Austrians, about the technique of managing the national economy; forgetting that economics is primarily a practical science which includes, assumes, and is founded upon fundamental truths about man and society is where we have gone wrong.). What I am saying, however, is that the economic science, for Catholics, is subordinate to, not independent of, moral philosophy.
16 Cf. Bede Jarrett's Social Theories of the Middle Ages, pp. 153-155. He is paraphrasing St. Thomas's Commentary on the Politics of Aristotle.
17 S.v., "Political Economy"
18 CE, s.v., "Ethics"
19 On Kingship, II, 3.
20 On Kingship, II, 3.
21 "...civil society, established for the common welfare, should not only safeguard the well-being of the community, but have also at heart the interests of its individual members, in such mode as not in any way to hinder, but in every manner to render as easy as may be, the possession of that highest and unchangeable good for which all should seek" (Leo XIII, Immortale Dei (1885), 6).
22 On Kingship, I, 15.
23 II, i, Q. 96, Art 2, ad 2.
24 Quadragesimo Anno, 25.
25 Quadragesimo Anno, 132.
26 Quadragesimo Anno, 133.
27 For more on the Austrian question, please see Appendix III.
28 Quadragesimo Anno, 133.
29 Commentary on the Politics of Aristotle, v.
30 II, i, Q. 30, Art. 4.
31 I don't have a copy of his book. It is — sadly or fortunately, depending upon your perspective — out of print and nearly impossible to find.
32 "Now the seller who offers goods for sale, gives the buyer an occasion of loss or danger, by the very fact that he offers him defective goods, if such defect may occasion loss or danger to the buyer--loss, if, by reason of this defect, the goods are of less value, and he takes nothing off the price on that account--danger, if this defect either hinder the use of the goods or render it hurtful, for instance, if a man sells a lame for a fleet horse, a tottering house for a safe one, rotten or poisonous food for wholesome. Wherefore if such like defects be hidden, and the seller does not make them known, the sale will be illicit and fraudulent, and the seller will be bound to compensation for the loss incurred" (Summa Theolociga, II, ii, Q. 77, Art 3).
33 Chapter and verse from their works are as follows: St. Bernardine, Opera Omnia, vol III, p. 250, quoted by Amintore Fanfani, Le Origini dello Spirito Capitalistico in Italia, and St, Antoninus, Summa Moralis, pars iii., 8, 3, iv; and pars ii, I, 16, ii, quoted by Bede Jarret, Social Theories of the Middle Ages.

©Seattle Catholic
November 3, 2002

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