After Appomattox, every one seemed bent on finding a short cut to opulence. To foreign observers, the United States was then simply a scrambling mass of selfish units, for there seemed to be among the American people no disinterested group to balance accounts between the competing elements--no leisure class, living on secured incomes, mellowed by generations of travel, education, and reflection; no bureaucracy arbitrarily guiding the details of governmental routine; no aristocracy, born umpires of the doings of their underlings. All the manifold currents of life seemed swallowed up in the commercial maelstrom. By the standards of what happened in this season of exuberance and intense materialism, the American people were hastily judged by critics who failed to see that the period was but the prelude to a maturer national life.
It was a period of a remarkable industrial expansion. Then "plant" became a new word in the phraseology of the market place, denoting the enlarged factory or mill and suggesting the hardy perennial, each succeeding year putting forth new shoots from its side. The products of this seedtime are seen in the colossal industrial growths of today. Then it was that short railway lines began to be welded into "systems," that the railway builders began to strike out into the prairies and mountains of the West, and that partnerships began to be merged into corporations and corporations into trusts, ever reaching out for the greater markets. Meanwhile the inventive genius of America was responding to the call of the time. In 1877 Bell telephoned from Boston to Salem; two years later, Brush lighted by electricity the streets of San Francisco. In 1882 Edison was making incandescent electric lights for New York and operating his first electric car in Menlo Park, New Jersey.
All these developments created a new demand for capital. Where formerly a manufacturer had made products to order or for a small number of known customers, now he made on speculation, for a great number of unknown customers, taking his risks in distant markets. Where formerly the banker had lent money on local security, now he gave credit to vast enterprises far away. New inventions or industrial processes brought on new speculations. This new demand for capital made necessary a new system of credits, which was erected at first, as the recurring panics disclosed, on sand, but gradually, through costly experience, on a more stable foundation.
The economic and industrial development of the time demanded not only new money and credit but new men. A new type of executive was wanted, and he soon appeared to satisfy the need. Neither a capitalist nor a merchant, he combined in some degree the functions of both, added to them the greater function of industrial manager, and received from great business concerns a high premium for his talent and foresight. This Captain of Industry, as he has been called, is the foremost figure of the period, the hero of the industrial drama.
But much of what is admirable in that generation of nation builders is obscured by the industrial anarchy which prevailed. Everybody was for himself--and the devil was busy harvesting the hindmost. There were "rate-wars," "cut-rate sales," secret intrigues, and rebates; and there were subterranean passages-- some, indeed, scarcely under the surface--to council chambers, executive mansions, and Congress. There were extreme fluctuations of industry; prosperity was either at a very high level or depression at a very low one. Prosperity would bring on an expansion of credits, a rise in prices, higher cost of living, strikes and boycotts for higher wages; then depression would follow with the shutdown and that most distressing of social diseases, unemployment. During the panic of 1873-74 many thousands of men marched the streets crying earnestly for work.
Between the panics, strikes became a part of the economic routine of the country. They were expected, just as pay days and legal holidays are expected. Now for the first time came strikes that can only be characterized as stupendous. They were not mere slight economic disturbances; they were veritable industrial earthquakes. In 1873 the coal miners of Pennsylvania, resenting the truck system and the miserable housing which the mine owners forced upon them, struck by the tens of thousands. In Illinois, Indiana, Missouri, Maryland, Ohio, and New York strikes occurred in all sorts of industries. There were the usual parades and banners, some appealing, some insulting, and all the while the militia guarded property. In July, 1877, the men of the Baltimore and Ohio Railrrefused to submit to a fourth reduction in wages in seven years and struck. From Baltimore the resentment spread to Pennsylvania and culminated with riots in Pittsburgh. All the anthracite coal miners struck, followed by most of the bituminous miners of Ohio, Indiana, and Illinois. The militia were impotent to subdue the mobs; Federal troops had to be sent by President Hayes into many of the States; and a proclamation by the President commanded all citizens to keep the peace. Thus was Federal authority introduced to bolster up the administrative weakness of the States, and the first step was taken on the rto industrial nationalization.
The turmoil had hardly subsided when, in 1880, new strikes broke out. In the long catalogue of the strikers of that year are found the ribbon weavers of Philadelphia, Paterson, and New York, the stablemen of New York, New Jersey, and San Francisco, the cotton yard workers of New Orleans, the cotton weavers of New England and New York, the stockyard employees of Chicago and Omaha, the potters of Green Point, Long Island, the puddlers of Johnstown and Columbia, Pennsylvania, the machinists of Buffalo, the tailors of New York, and the shoemakers of Indiana. The year 1881 was scarcely less restive. But 1886 is marked in labor annals as "the year of the great uprising," when twice as many strikes as in any previous year were reported by the United States Commissioner of Labor, and when these strikes reached a tragic climax in the Chicago Haymarket riots.
It was during this feverish epoch that organized labor first entered the arena of national politics. When the policy as to the national currency became an issue, the lure of cheap money drew labor into an alliance in 1880 with the Greenbackers, whose mad cry added to the general unrest. In this, as in other fatuous pursuits, labor was only responding to the forces and the spirit of the hour. These have been called the years of amalgamation, but they were also the years of tumult, for, while amalgamation was achieved, discipline was not. Authority imposed from within was not sufficient to overcome the decentralizing forces, and just as big business had yet to learn by self-imposed discipline how to overcome the extremely individualistic tendencies which resulted in trade anarchy, so labor had yet to learn through discipline the lessons of self-restraint. Moreover, in the sudden expansion and great enterprises of these days, labor even more than capital lost in stability. One great steadying influence, the old personal relation between master and servant, which prevailed during the days of handicraft and even of the small factory, had disappeared almost completely. Now labor was put up on the market--a heartless term descriptive of a condition from which human beings might be expected to react violently--and they did, for human nature refused to be an inert, marketable thing.
The labor market must expand with the trader's market. In 1860 there were about one and a third million wage-earners in the United States; in 1870 well over two million; in 1880 nearly two and three-quarters million; and in 1890 over four and a quarter million. The city sucked them in from the country; but by far the larger augmentation came from Europe; and the immigrant, normally optimistic, often untaught, sometimes sullen and filled with a destructive resentment, and always accustomed to low standards of living, added to the armies of labor his vast and complex bulk.
There were two paramount issues--wages and the hours of labor-- to which all other issues were and always have been secondary. Wages tend constantly to become inadequate when the standard of living is steadily rising, and they consequently require periodical readjustment. Hours of labor, of course, are not subject in the same degree to external conditions. But the tendency has always been toward a shorter day. In a previous chapter, the inception of the ten-hour movement was outlined. Presently there began the eight-hour movement. As early as 1842 the carpenters and caulkers of the Charleston Navy Yard achieved an eight-hour day; but 1863 may more properly be taken as the beginning of the movement. In this year societies were organized in Boston and its vicinity for the precise purpose of winning the eight-hour day, and soon afterwards a national Eight-Hour League was established with local leagues extending from New England to San Francisco and New Orleans.
This movement received an intelligible philosophy, and so a new vitality, from Ira Steward, a member of the Boston Machinists' and Blacksmiths' Union. Writing as a workingman for workingmen, Steward found in the standard of living the true reason for a shorter workday. With beautiful simplicity he pointed out to the laboring man that the shorter period of labor would not mean smaller pay, and to the employer that it would not mean a diminished output. On the contrary, it would be mutually beneficial, for the unwearied workman could produce as much in the shorter day as the wearied workman in the longer. "As long," Steward wrote, "as tired human hands do most of the world's hard work, the sentimental pretense of honoring and respecting the horny-handed toiler is as false and absurd as the idea that a solid foundation for a house can be made out of soap bubbles."
In 1865 Steward's pamphlet, "A Reduction of Hours and Increase of Wages," was widely circulated by the Boston Labor Reform Association. It emphasized the value of leisure and its beneficial reflex effect upon both production and consumption. Gradually these well reasoned and conservatively expressed doctrines found champions such as Wendell Phillips, Henry Ward Beecher, and Horace Greeley to give them wider publicity and to impress them upon the public consciousness. In 1867 Illinois, Missouri, and New York passed eight-hour laws and Wisconsin declared eight hours a day's work for women and children. In 1868 Congress established an eight-hour day for public work. These were promising signs, though the battle was still far from being won. The eight-hour day has at last received "the sanction of society"--to use the words of President Wilson in his message to Congress in 1916, when he called for action to avert a great railway strike. But to win that sanction required over half a century of popular agitation, discussion, and economic and political evolution.
Such, in brief, were the general business conditions of the country and the issues which engaged the energies of labor reformers during the period following the Civil War. Meanwhile great changes were made in labor organizations. Many of the old unions were reorganized, and numerous local amalgamations took place. Most of the organizations now took the form of secret societies whose initiations were marked with naive formalism and whose routines were directed by a group of officers with royal titles and fortified by signs, passwords, and ritual. Some of these orders decorated the faithful with high-sounding degrees. The societies adopted fantastic names such as "The Supreme Mechanical Order of the Sun," "The Knights of St. Crispin," and "The Noble Order of the Knights of Labor," of which more presently.
Meanwhile, too, there was a growing desire to unify the workers of the country by some sort of national organization. The outcome was a notable Labor Congress held at Baltimore in August, 1866, which included all kinds of labor organizations and was attended by seventy-seven delegates from thirteen States. In the light of subsequent events its resolutions now seem conservative and constructive. This Congress believed that "all reforms in the labor movement can only be effected by an intelligent, systematic effort of the industrial classes . . . through the trades organizations." Of strikes it declared that "they have been injudicious and ill-advised, the result of impulse rather than principle,...and we would therefore discountenance them except as a dernier ressort, and when all means for an amicable and honorable adjustment has been abandoned." It issued a cautious and carefully phrased Address to the Workmen throughout the Country, urging them to organize and assuring them that "the first thing to be accomplished before we can hope for any great results is the thorough organization of all the departments of labor."
The National Labor Union which resulted from this convention held seven Annual Congresses, and its proceedings show a statesmanlike conservatism and avoid extreme radicalism. This organization, which at its high tide represented a membership of 640,000, in its brief existence was influential in three important matters: first, it pointed the way to national amalgamation and was thus a forerunner of more lasting efforts in this direction; secondly, it had a powerful influence in the eight-hour movement; and, thirdly, it was largely instrumental in establishing labor bureaus and in gathering statistics for the scientific study of labor questions. But the National Labor Union unfortunately went into politics; and politics proved its undoing. Upon affiliating with the Labor Reform party it dwindled rapidly, and after 1871 it disappeared entirely.
One of the typical organizations of the time was the Order of the Knights of St. Crispin, so named after the patron saint of the shoemakers, and accessible only to members of that craft. It was first conceived in 1864 by Newell Daniels, a shoemaker in Milford, Massachusetts, but no organization was effected until 1867, when the founder had moved to Milwaukee. The ritual and constitution he had prepared was accepted then by a group of seven shoemakers, and in four years this insignificant mustard seed had grown into a great tree. The story is told by Frank K. Foster,* who says, speaking of the order in 1868: "It made and unmade politicians; it established a monthly journal; it started cooperative stores; it fought, often successfully, against threatened reductions of wages...; it became the undoubted foremost trade organization of the world." But within five years the order was rent by factionalism and in 1878 was acknowledged to be dead. It perished from various causes--partly because it failed to assimilate or imbue with its doctrines the thousands of workmen who subscribed to its rules and ritual, partly because of the jealousy and treachery which is the fruitage of sudden prosperity, partly because of failure to fulfill the fervent hopes of thousands who joined it as a prelude to the industrial millennium; but especially it failed to endure because it was founded on an economic principle which could not be imposed upon society. The rule which embraced this principle reads as follows: "No member of this Order shall teach, or aid in teaching, any fact or facts of boot or shoemaking, unless the lodge shall give permission by a three-fourths vote...provided that this article shall not be so construed as to prevent a father from teaching his own son. Provided also, that this article shall not be so construed as to hinder any member of this organization from learning any or all parts of the trade." The medieval craft guild could not so easily be revived in these days of rapid changes, when a new stitching machine replaced in a day a hundred workmen. And so the Knights of St. Crispin fell a victim to their own greed.
* "The Labor Movement, the Problem of Today," edited by George E. McNeill, Chapter VIII.
The Noble Order of the Knights of Labor, another of those societies of workingmen, was organized in November, 1869, by Uriah S. Stephens, a Philadelphia garment cutter, with the assistance of six fellow craftsmen. It has been said of Stephens that he was "a man of great force of character, a skilled mechanic, with the love of which enabled him to pursue his studies during his apprenticeship, and feeling withal a strong affection for secret organizations, having been for many years connected with the Masonic Order." He was to have been educated for the ministry but, owing to financial reverses in his family, was obliged instead to learn a trade. Later he taught school for a few years, traveled extensively in the West Indies, South America, and California, and became an accomplished public speaker and a diligent observer of social conditions.
Stephens and his six associates had witnessed the dissolution of the local garment cutters' union. They resolved that the new society should not be limited by the lines of their own trade but should embrace "all branches of honorable toil." Subsequently a rule was adopted stipulating that at least three-fourths of the membership of lodges must be wage-earners eighteen years of age. Moreover, "no one who either sells or makes a living, or any part of it, by the sale of intoxicating drinks either as manufacturer, dealer, or agent, or through any member of his family, can be admitted to membership in this order; and no lawyer, banker, professional gambler, or stock broker can be admitted." They chose their motto from Solon, the wisest of lawgivers: "That is the most perfect government in which an injury to one is the concern of all"; and they took their preamble from Burke, the most philosophical of statesmen: "When bad men combine, the good must associate, else they will fall, one by one, an unpitied sacrifice in a contemptible struggle."
The order was a secret society and for years kept its name from the public. It was generally known as the "Five Stars," because of the five asterisks that represented its name in all public notices. While mysterious initials and secret ceremonies gratified the members, they aroused a corresponding antagonism, even fear, among the public, especially as the order grew to giant size. What were the potencies of a secret organization that had only to post a few mysterious words and symbols to gather hundreds of workingmen in their halls? And what plottings went on behind those locked and guarded doors? To allay public hostility secrecy was gradually removed and in 1881 was entirely abolished --not, however, without serious opposition from the older members.
The atmosphere of high idealism in which the order had been conceived continued to be fostered by Stephens, its founder and its first Grand Master Workman. He extolled justice, discountenanced violence, and pleaded for "the mutual development and moral elevation of mankind." His exhortations were free from that narrow class antagonism which frequently characterizes the utterances of labor. One of his associates, too, invoked the spirit of chivalry, of true knighthood, when he said that the old trade union had failed because "it had failed to recognize the rights of man and looked only to the rights of tradesmen," that the labor movement needed "something that will develop more of charity, less of selfishness, more of generosity, less of stinginess and nearness, than the average society has yet disclosed to its members." Nor were these ideas and principles betrayed by Stephens's successor, Terence V. Powderly, who became Grand Master in 1879 and served during the years when the order attained its greatest power. Powderly, also, was a conservative idealist. His career may be regarded as a good example of the rise of many an American labor leader. He had been a poor boy. At thirteen he began work as a switch-tender; at seventeen he was apprenticed as machinist; at nineteen he was active in a machinists' and blacksmiths' union. After working at his trade in various places, he at length settled in Scranton, Pennsylvania, and became one of the organizers of the Greenback Labor party. He was twice elected mayor of Scranton, and might have been elected for a third term had he not declined to serve, preferring to devote all his time to the society of which he was Grand Master. The obligations laid upon every member of the Knights of Labor were impressive: Labor is noble and holy. To defend it from degradation; to divest it of the evils to body, mind and estate which ignorance and greed have imposed; to rescue the toiler from the grasp of the selfish--is a work worthy of the noblest and best of our race. In all the multifarious branches of trade capital has its combinations; and, whether intended or not, it crushes the manly hopes of labor and tramples poor humanity in the dust. We mean no conflict with legitimate enterprise, no antagonism to necessary capital; but men in their haste and greed, blinded by self-interests, overlook the interests of others and sometimes violate the rights of those they deem helpless. We mean to uphold the dignity of labor, to affirm the nobility of all who earn their bread by the sweat of their brows. We mean to create a healthy public opinion on the subject of labor (the only creator of values or capital) and the justice of its receiving a full, just share of the values or capital it has created. We shall, with all our strength, support laws made to harmonize the interests of labor and capital, for labor alone gives life and value to capital, and also those laws which tend to lighten the exhaustiveness of toil. To pause in his toil, to devote himself to his own interests, to gather a knowledge of the world's commerce, to unite, combine and cooperate in the great army of peace and industry, to nourish and cherish, build and develop the temple he lives in is the highest and noblest duty of man to himself, to his fellow men and to his Creator.
The phenomenal growth and collapse of the Knights of Labor is one of the outstanding events in American economic history. The membership in 1869 consisted of eleven tailors. This small beginning grew into the famous Assembly No. 1. Soon the ship carpenters wanted to join, and Assembly No. 2 was organized. The shawl-weavers formed another assembly, the carpet-weavers another, and so on, until over twenty assemblies, covering almost every trade, had been organized in Philadelphia alone. By 1875 there were eighty assemblies in the city and its vicinity. As the number of lodges multiplied, it became necessary to establish a common agency or authority, and a Committee on the Good of the Order was constituted to represent all the local units, but this committee was soon superseded by a delegate body known as the District Assembly. As the movement spread from city to city and from State to State, a General Assembly was created in 1878 to hold annual conventions and to be the supreme authority of the order. In 1883 the membership of the order was 591,000; within three years, it had mounted to over 700,000; and at the climax of its career the society boasted over 1,000,000 workmen in the United States and Canada who had vowed fealty to its knighthood. It is not to be imagined that every member of this vast horde so suddenly brought together understood the obligations of the workman's chivalry. The selfish and the lawless rushed in with the prudent and sincere. But a resolution of the executive board to stop the initiation of new members came too late. The undesirable and radical element in many communities gained control of local assemblies, and the conservatism and intelligence of the national leaders became merely a shield for the rowdy and the ignorant who brought the entire order into popular disfavor.
The crisis came in 1886. In the early months of this turbulent year there were nearly five hundred labor disputes, most of them involving an advance in wages. An epidemic of strikes then spread over the country, many of them actually conducted by the Knights of Labor and all of them associated in the public mind with that order. One of the most important of these occurred on the Southwestern Railr In the preceding year, the Knights had increased their lodges in St. Louis from five to thirty, and these were under the domination of a coarse and ruthless district leader. When in February, 1886, a mechanic, working in the shops of the Texas and Pacific Railrat Marshall, Texas, was discharged for cause and the rrefused to reinstate him, a strike ensued which spread over the entire six thousand miles of the Gould system; and St. Louis became the center of the tumult. After nearly two months of violence, the outbreak ended in the complete collapse of the strikers. This result was doubly damaging to the Knights of Labor, for they had officially taken charge of the strike and were censured on the one hand for their conduct of the struggle and on the other for the defeat which they had sustained.
In the same year, against the earnest advice of the national leaders of the Knights of Labor, the employees of the Third Avenue Railway in New York began a strike which lasted many months and which was characterized by such violence that policemen were detailed to guard every car leaving the barns. In Chicago the freight handlers struck, and some 60,000 workmen stopped work in sympathy. On the 3d of May, at the McCormick Harvester Works, several strikers were wounded in a tussle with the police. On the following day a mass meeting held in Haymarket Square, Chicago, was harangued by a number of anarchists. When the police attempted to disperse the mob, guns were fired at the officers of the law and a bomb was hurled into their throng, killing seven and wounding sixty. For this crime seven anarchists were indicted, found guilty, and sentenced to be hanged. The Knights of Labor passed resolutions asking clemency for these murderers and thereby grossly offended public opinion, and that at a time when public opinion was frightened by these outrages, angered by the disclosures of brazen plotting, and upset by the sudden consciousness that the immunity of the United States from the red terror of Europe was at an end.
Powderly and the more conservative national officers who were opposed to these radical machinations were strong enough in the Grand Lodge in the following year to suppress a vote of sympathy for the condemned anarchists. The radicals thereupon seceded from the organization. This outcome, however, did not restore the order to the confidence of the public, and its strength now rapidly declined. A loss of 300,000 members for the year 1888 was reported. Early in the nineties, financial troubles compelled the sale of the Philadelphia headquarters of the Knights of Labor and the removal to more modest quarters in Washington. A remnant of members still retain an organization, but it is barely a shadow of the vast army of Knights who at one time so hopefully carried on a crusade in every center of industry. It was not merely the excesses of the lawless but the multiplicity of strikes which alienated public sympathy. Powderly's repeated warnings that strikes, in and of themselves, were destructive of the stable position of labor were shown to be prophetic.
These excesses, however, were forcing upon the public the idea that it too had not only an interest but a right and a duty in labor disputes. Methods of arbitration and conciliation were now discussed in every legislature. In 1883 the House of Representatives established a standing committee on labor. In 1884 a national Bureau of Labor was created to gather statistical information. In 1886 President Cleveland sent to Congress a message which has become historic as the first presidential message devoted to labor. In this he proposed the creation of a board of labor commissioners who should act as official arbiters in labor disputes, but Congress was unwilling at that time to take so advanced a step. In 1888, however, it enacted a law providing for the settlement of railway labor disputes by arbitration, upon agreement of both parties.
Arbitration signifies a judicial attitude of mind, a judgment based on facts. These facts are derived from specific conditions and do not grow out of brgeneralizations. Arbitral tribunals are created to decide points in dispute, not philosophies of human action. The businesslike organization of the new trade union could as readily adapt itself to arbitration as it had already adapted itself, in isolated instances, to collective bargaining. A new stage had therefore been reached in the labor movement.
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