Scribd Logo
Upload

Welcome to Scribd!

  • Cox - The Foundations of Capitalism

    Uploaded by

    ChristopherGunderson
    62 views259 pages

    Original Title

    Cox -- The Foundations of Capitalism

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    62 views259 pages

    Cox - The Foundations of Capitalism

    Uploaded by

    ChristopherGunderson

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
    of 259
    OLIVER C. COX THE FOUNDATIONS OF CAPITALISM FOREWORD BY HARRY ELMER BARNES PETER OWEN LIMITED LONDON Puer Onen Limited 50 Od Brompton Rood Loasen Sv? @ vy o1ne Bound ie Gra Be Pie he Usa chix | | | TABLE OF CONTENTS PREFACE FOREWORD INTRODUCTION An Overview 13 The Subject 16 ‘The Question of Method 17 PART 1 — ESTABLISHMENT OF THE SYSTEM Chapter I CAPITALIST CITIES ‘Types of Capitalist Cities 25 Sovereign Cities 29 Chapter 11: VENICE THE PROGENITOR ‘An Interstitial Zone _ 82 Relationship With the Byzantine Empire Organization $8 Gitizenship 46 Chapter 111: DOMINANT CAPITALIST ATTITUDES IN VENICE Natonaisn 35 Place of Religion 57 ‘The Spirit of Capitalism — 62 6 Page 8 2% » chapter I: ECONOMIC UNDERPINNING OF VENICE 2 Commerce 67 Colonization 72 Industry 75 Libor 77 Busines Entrpre 18 Finance 80 Chapter V2 MERCANTILE POLICY OF VENICE * Regulation of Commerce 90 Foreiga Merchans in Ve The Treaty 98 ‘The Fourth Crosude 100, The Ambauador 102 98 War 105 Chapter VE: DISTINCTIVE CULTURE OF VENICE nT TeFeuwrs 117 4 Usiguenen 121 8 Miracle of Capitaliem 124 Diffusion ofthe Calsure 126, ‘The Desine 129 ANotwon Amalfi 181 Autonomous Cites 139 Chapter Vir FLORENCE AND INLAND CAPITALISM ‘The Florentine Situation 140 Iw Orgtadon 1s est of Power 47 Consolidation of Capitalist Power 149 forkersin Power 152 Reicion 154 40 chapter VII: FLORENTINE ECONOMIC ORDER AND CULTURE Industry and Commerce 161 Banking 164 Status of Jews 168 Nationalism and War 169 Superlative Culture 170, Chapter 1X: GENOA, A TYPICAL CITY ks Capitalist Situation 178 Organization 176 Commerce 178, War 179 Role of Jews 180 ‘Autonomous Leagued Cities 183 Chapter X: ‘THE HANSEATIC LEAGUE Ite Characteris 186 Organization and Privileges 189 Commerce 194 War 195 The Role of Jews 195 Decline 198 Sover 204 ign Federal C Chapter XI AMSTERDAM AND OTHER CITIES OF THE UNITED PROVINCES Origins 206 The New State 211 The Oligarchy 215 ‘The Common People 216 ‘The Nobility 217 Nationalism, Religion, and Reform 218 Class Struggle 221 16 "5 206 (Ohapter XI POWER OF DUTCH CAPITALISM 229 Capita Posture 229, ‘The East India Company 231 Ongenzation of Foreign Resources 238 Indusey 285 Banking and Finance 237 Jew 20 War 29 ANewFabslous Bloom 241 ‘ANew School 248, ‘The Decline 248 hapter Xt: DEPENDENTSUBJECT CITIES 29 Communes 249 English Boroughs 251 London 235 Chapter IF: FAIRS, KONTORS OR STAPLES, AND EMPORIA 262 Gharacteritics of Fairs and Fair Towns 262 Peviodical FeinTowns 268, Permanent FairCitier 265 Komiors and Suples 278, Emporia 275 PART Il — THE NATION, MERCANTIL, AND INDUSTRIALISM E Chapter xr: THE NaTION England As the New Unit of Capiaion ‘The Unification of England aeg”*t Giri Movements Potion Foreign Tries Nitonaion gh 8 Formation of apie Legere 283 202 chapter XVI: ENGLISH COMMERCIAL AND INDUSTRIAL STRATEGY aa Organization of Merchants For Acquistion of Capitalist Privileges Abroad $04, Role ofthe Merchant Adventurers $06 ‘The JointStock Companies 909 Organization of Domestic Commerce and Industy for Foreign Trade $12 CChopter XVII: MERCANTILISM AND THE NATION sia ‘The Concept 818 As Classical Economics 819 ‘As State Regulation of Commerce and Industry $19, ‘As Opposed toLaise: Faire 220 ‘As the Transplantation of Town Economy 828 ‘The Appeal and Aim 825 ‘The Grievance 327 ‘The Method $28 Social Organization 330 Mereantiist Freedom 882 ‘The Place of Religion 387 Social Status 340 Chapter XVII: ‘THE BASIS OF MERCANTILISM sot Nature of Mercantilist Commerce 854, Disant Trade 857 Commercial Leadership 359 Provisioning 360 Good and Bid Commerce 851 Treasure 363 Domestic and Foreign Trade 365 Chapter XIX: SUPPORTS OF THE MERCANTILIST STATE m ‘The Place of Manufacture 874 Labor and Manufacture 376 “The Uses of Labor 878 Situation of the Clases 379 ‘The Value of Labor 881 ‘The Uses of Colonies $86 Relative WellBeing of Domestic Labor 385 Mercanilt Morality $86 ‘The Place of War 388 ADefnition of Mercantil $92 Chapter XX: ‘THE INDUSTRIAL REVOLUTION AND ITS SOCIETY 405, Nature of the Change 405, The Question of Origin 405 ‘The Miliew 408, Inventonness a the Dominant Trait 411 ANew Faith 413, ‘Technological Emphasis 414 ‘The Socinl Factor Emphasis 418 Personality Component 420 ‘The Question of Motivation 422 Size of Population sea Factor 428 Value of Science and Technology 425 Chapter X21; ‘THE INDUSTRIAL REVOLUTION AND ITS ‘COMPONENTS 436 England as the Logical Place 436 ‘The Machines 438 Uses ofthe Industrial Revolution 439 Some Major Consequences 440 Cotton" 442 Coal and iron 444 Colonies 444 The Factory 445 ‘The Industrial 448 Chapter Xx: INDUSTRIALIZATION, AN ACCELER TALIST TENDENCIES OR On Cher TreeTrade 456 486 Utaniation 458 Imegation of Labor 459 torand Humanitarian 462 {iter Demand ta Share 468, Goan Conacoumes and Ate at Cla Soule 467 Tabor Stk Pall Accommodation 40 Tabor inPower 47 Trlumphand eli of Lender Nation 478 (Chapter XXII CONCLUSION ACKNOWLEDGMENTS ‘The author wishes to thank boch authors and publishers for permission to reprint from the following works: Witt Bowden, Industrial Society in Englond towards the End of the Eightcenth Century, New York, Macmillan Co, 1925; Frederic €. Lane, Venetian Ships and Shipbuilders of the Reneisance, Baltimore, The Johns Hopkins Press, 198; Ferdinand Schevill, History of Florence, New York, Harcourt, Brace and Co; James Westfall ‘Thompson, Economic ond Social History of Europe in the Later ‘Middle Ages (1300-1930), New York, Appleton-Centary.Crott, Inc, 1981; Silvia L. Thrupp, The Merchant Clas of Medieval London 1300-1500, Chicago, University of Chicago Prest, 1948, PREFACE “The capitalist system is indubitably the most powerfal and dynamic form of social organization ever crated by man. And yen its crtenty undergoing sick vital changes that an nde Zanding ofits nature becomes an immediate prerequisite toa tneaningfal inerpretation of the subordinate though crite so Gal isues involved. Major social problem of contemporary sci fey are essentially problems of capitalism. There is avaliable, however, surprisingly litle transmissible knowledge about itt characteristics. Even a cursory review of the literature from the spcialied encyclopedias to Sombar’s monumental work, Der Moderne Kapitalismus, would probably show that very much remains to bbe done in this area. Suppose, for example, it becomes necesary to distinguish between the case system and modern race telations and the conclusion was reached that race relations are a featare ‘exclusively of capitalism, where can the student finda discussion of capitalism suiciently defniivé to verity this asertion? And If indeed we say that the business cycle has developed asa pecut iar trait of the capitalist system, it would seem that an under sanding of the nature of that sytem becomes a pre-condition to any full comprehension of cyclical movements. Repeated frusta- tions of efforts to find such support in existing materials partly led me to the present study. Although this work is not exhaustive, its developmental ap- roach necessitated considerable redefinition and review of phe nomena as they repeated themselves, though seldom exactly, in the sequence of soctetal situations from the origin to the mature stage of capitalism, I have been able to reach many generalizations largely on the basis of significant recurrence of institutions and their inter-elationships. ich putes of society, they must be ert wolnes, and i a pot alvaye that Sov wc ch me oer fr granted ar aninpoe ta Si ay apc nse of he 3 ih aa ee vor dha apparent impediment T apologize, a1 FA Lo pr din he nrocucion to The Pble of the Beet when he mati extremely obvious (0 one reader ay sem recondite to anoher, and an explanation which fs 2 re orto one may pres the oer an insult to his educa thom Tk pardon of thee whom T have thus outraged.” T have tonanly ten ino consideration a wider audience than those fmmedatey engaged in resarch on the subject. In order to dist grasped in their signific “The sudy centers is interest ina description of the origin and devdlopnent ofthe socal and economie organiation of the cap- ite tm, hence analy of some of is elements bas, been tarred only i the point of revealing the significance of thei tole In other words {have been particularly concerned with de- Plctig the sacral dvgns of capital stietes, thet integra tion in a worldwide ayten, and their cultural potentialities T fave thus not gone Beyond the leadership ofthe fully established Englsh ation in which all the primary fstitutons of eapitalisn achieved maturity. Ina fre nudy T shall hope to analyee the theoretical aspect of the scal process nthe sytem. Pat I deals with the historical origins of capitalism, the im- portance of which fran understanding of the exleere can hardly be overated, Chapter Tx eaentaly an outline and hypothetical iaueduction to this pat. Since our Interest here tin the murs ipl base of the development of capitalism, ie seemed convenient 40 present this bref epology and analysis of = highly comptes Problem so that the ral act that capitalist cides were noe of allthe ame character and significance might become imsmeisely apparent Part IT describes the proces of expansion of capt seey into the modem mation andthe pace of induration The book ends witha discussion of factors involved tn the ee 5 na aah edie of the capitalist stem, yp ne Particular pleasure to record here my sincere grat- Sede to Pefesor Hay Ener Burne fr We eee Baler his enerous foreword: There aill remains sey meek be capitals institutions from his wn prolife pea, 2 1 Dr. Paul M. Sweezy, who read the manuscript citcally in ts rheaic and receptive ever at points where hs own aca Per Fain ba led him to iferent convictions 1 have Wied to ley ceptethe sources of my data and thus to identity my teleee, Ghpon the work of other. Sometimes T Bnd mult at vance Wigh my teachers; I cam only hope that these diferences ae not Xiways due to my not having properly mastered their lewons Thave profited By the insights of my colleagues in the socal chances at Lincoln University, who have been open handed with {heir time in numerous discusions of this subjec. Mr. Jean I Rauch was most helpful in preparing the iypecipt. Oliver 6. Cox. Jefferson City, Missouri. FOREWORD The subject of capitaliam has engaged my imteret and ate. sin fom time to time in connection wth my studies in conse Hor, socal institutions, andthe history of sociologial theory, Mere the Tater touches upon the views c leading sxc Juha Max Weber and Ernst Troe, dealing with te orgs of capital, I'am glad to retum to it fora brief dcusion in the frm ofa foreword to Profesor Olver C. Gor’ comprehen sive work on the nature and evolution of capitalism at soco- ‘Writers interested in economics, all the way from the most extreme Libertarians on the Right to Communists on the Left, are at least in agreement that capitalism is the outstanding prod- uct of economic evolution to the present time and the basic eco nomic institution of the modern age. Whatever its present status and future prospects, the debate about capitalism was never more lively than at the present time. Of late special attention has been given to the question as to how far the factory system and cap- italism were responsible for the harsh working and living condi- tions in the early days of the first Industrial Revolution Libertarians, not unduly alarmed by the current trends to- wards collectivism and state action, even in the socalled free nations, ardently urge a return to the free enterprise of the days of the Physiocrats, Adam Smith and David Ricardo. The radical collectivists assume that the days of capitalism are numbered if indeed, they do not view the system as @ sort of economic an- tiquity or museum piece, Realistic scholars, not commited in a¢- Vance to either extreme, are secking to understand its origins nature, present state, and future trends. ‘They recognize that the ‘economic world was never in a more fluid or unpredictable cone dition than it is today. So far as T can judge by this fst volume of Professor Cox's projected three volume work on the history an 5 thcoreal analysis of capitalism as a social system, the author longs co tis hed ou longs 0s i Ferd have been devoted to the origins, an pment of capitalism, nowbly those by Max pare and de erch, Re He Tawney, Lujo Brentano, and, Mie i elopeic survey by Werner Sombart, Modern ae a tn cadlton, there have been numerous systematic Cpt eee ater portions of which are necesaily Cana various technologies), material and institutional see te origin and triumph of capitalism in the modem worl. Prcesor Co's wa ia navel departure from caer books dealiag withthe gomth of capitalism. Tis nota traditional co. nomi soy, with epitalin a the major theme, but a5 ivory of the captaist sem andthe spirit which engendered Termotivaed sand brougie about is integration a8 aston. Tt tres of the brood pater of capitalise society, vigins, grow nd epnson providing a torts! anal aswell at ade Seripicn ofthe integral elements jn the sjsem. Ts tribute to the achicement of eptaln wel arate it broad spproach tothe problem: In our preset day of criss and transition the achievements of capital thould noe be minimized. They involve preeminent cul: {ufal gains for mankind. ‘The magnicude Of these gains may be it. ferred from the following incomplete list: uniheation of the world into a system of national interdependence; effective liberation of the human mind from the fetere of veligious aysticim and hence secu lariation ofthe dominant culture; banishment of irational fear and Solty toads pens of other societies, establishment of an ime Perishable fth in the eficacy of scence and technology, and com Drebension of economization in production; provision of & milieu for the growth of democracy; and, erentually, demonstration of the fex- ‘ily of purposely organizing the societies of the world in the ineres of huran welt would probably be dfcl to show that 2B of i pat bio 0 mankind cud have avs withost Ss sie odo enya i oprach we pho in Pl te pc Fis conta; ts oak nthe Wires au bab en Ney, sob agape Ofte of penal and i qa To the seal ond sol ts Be dy a val denen temo tceation and preenaion of he on im which giv eobedoa nnd Syuenie’ cof capital lynamic impulse to the em ‘eteior Cox lays down number of fundamental psu gt ir deme oh st Eapualion a8 8 wcovesormic ehh tue ot iin, Captain ecm ic oc soa el of Roman cviatin in he Wax mac eosin condos were ado protdcd Wine rag eure gone wake vp the aplae spce oe mee back to exer mes, they did no one apa ‘rertac acu, cren tncionly or cal They ree x 22 of captain only when they were intfated Inte og aglatae pear When sit trem tera eect of a ‘ity ook on capital ts, but never previous ‘iptalinicwecey ina unique form ol onion me a peclic ope of oaiea peycologial mouvaton and ore fig Devious iene which ete later gathered ino the epi tell stem tok on quite dierent pycologea nd ter Sputetnr and fanensl operation win te epiiccom- lox Gencaltations about sca an eomomie fea i he ie TEnoncapialisie cviliationy, based Spon eptaieasomp fons and experiences, are likely tobe dred and miseating, wintrer te apparent superfilsmiaies and mags Ca Talim can ony be understood when viewed and aad within the prema and operations of eae e. Bren Be, thew i danger in’ univer) genera. While there general similarity in the bai ongaion and sit n ata fim everwhere manilsted on he pane there are sient Sieronct in dts Ths one veto wn the unre the dogmas of sal economic wa ten falco an son Copia economic onganiaion, motration and operation, havea ‘suitable government with which © inl pte a. old conmapian and terogencous momar of ani or the dws ngrarian felis ofthe Middle Age were all? Uhsuited to the Sperations of epi Thi ses 3 TPE or democracy cortrelled by busines men who operat the Plt ‘al and legal system in accord with the dictates of the capi involves and requires a unique form of “fencer ga it must also 1 ations! wae, conaitsional government and the . senna. The Pe have hewn needed and proved (0 met ‘the political demands of capitalism. b jonalized and a eta elon ma be manic an ee i oa ag rai of mysciom and ta fred gm er Pail Clvniem and Puen, Sa Pre Geena Harknes ad others have ae Me ncn te aniwer fo the needs of cape hieen the alm of eign. : Se ea sci an ertan socal tae. Te cannot vise and de cram sing. which was a main reason why rd tie a Wc during te period of medical feodaiom, sere vate whl ay side frm the feudal sper i ward ad econo, ben ese Europe during mod- Same That major cla and compenenis of cplaisn had come snc Blog England by 1688, Bat during cht epoch and there her the frogren of cepa was nob promoted by Mere isa had provid s mere ror eed optenatc cron olay, by te st Industral Revluion which Ieressed the Ippon an presige af lence and technology in production, by ceolal aoecale Ghougnt and Spencetin eftuloniee ‘hich eved or rected Meret and supplied the idclogy ‘ch has govemed onbod cptalon we proven Say. Finally reenor Cox eotens thar the hisri experience of capa prove ha cpt ety of natanal te mut cae tans ily nin commer Fl i to endure Ie ied to te necsity of guming ever greater ac Gest, and sucel exploitation of foreign tatkets Ta 9 do. Ing Wether daorpanzes the socal and eepnome sytem of the tore prnive or sate economies whit pene on 4 thee of England, force them wo abandon" old spt, Be. come apalic, and launch their own prota of expansion In this rt volume af his work, Profesor ox tees the rie znd growth of eaptalon from i origins n the Taian pate of Venice down tmeugh the Tada Revolcion in, Engand, 3 which time the epi system had tke om al of re lial attributes prior to ehe rise of finance, state and military capi- talism in the twentie ‘Biiam in che tweneieth century, a subject reserved for the later ‘The book leads off with an extended history and excellent ‘ is ofthe socioeconomic sytem of Venice, which Protenor ana tas asthe ft dfiteprotorype ofthe aan et oot Fe enjoyed a very favorable geographical atnaune foo re ae medieval commercial opportunites I ai mig plot Jus on commerce and commerdal expenion. Ie mean d copha and feodalism and set up a Reprileran yee mona bat extended ciizenship to all dases of ntne ateey alieacWhile never attaining the stature of national soe laced many of the familar peycholgical ais af mionaiee Pretbatriotc pride. Te took a step toward the naonlanen of ‘fon by providing that the priesthood be recruited solely foe Venza. Ts historic experience proved that prosperity depended Toon extending the scope and command of foreign martes and TBe when no farther expansion was posible the nysem tended Gacline, The failure of capitalism to extend eastward from Venice Emonstated that the system can rie and thrive only where the feneral cultural conditions are favorable o the equlrements ot Srrapitalist society. After the dediine of Venice, capitalist tends fumed to the West and North where an appropriate environment for ther growth became ever more prevalent Leaving Venice, Profesor Cox describe the rise and course of commercial capitalist development in Florence and other com smereal ites, the Hanseatic cites, the Dutch cite, and thea tres toa more deailed analysis ofthe Mereaniis system which com- bined commercialism and nationalism, especially in England Here the book becomes theoretical as wel as descriptive. “The volume concludes with an extended consideration ofthe frat Industrial Revolution in England that produced the walled mpite of machines Seence and ecology tained grater rom nce, prestige and application, Prosperous capitalism t to concentrate in leader nations, notably England, where the Xequtements and motivation of apie sce wee, pret to the highest degree. Consideration is given tothe vse of facto Inbor within dhe nev industrial system snd to the impact of labor on capitalism, Professor Cox makes the interesting suggestion that although labor fas complained about the captalitic society and has long had the ambition to take over i con, i is Por shologcaly and functionally unable 19 operate « ails 2, Gly hat proved unin wo render he apis eve ‘© commercial imperialism, and. without so doing i can nen ‘Miccessfully ope a ‘capitalist domestic economy. Ernest Bev ° ver at unwiling to sacrifice the Brith Empire as was Winston Church eis rst volume is concerned, while posibly diter- ‘ ae is of deeripion and analysis, I Gnd lle vo ing on mde preewor Cox’ teatment and much to con complain, yt cud prove laminating and helpful to all three we ope mentioned inthe opening paragraph of the For of he OU savely concerned with discussing eatalism today, Teprovdr sah and minting weament not dapat A Pree any ober wrk in any language. As auch, it must be see a lajr contribution to wocal and economic history inor dy. ey Xam aio pdt ee win 1 might ave say abou the wo later volumes in his projected series. T suspect Soe mightier rather more radically with his treatment of inne ete aii pian, an would Sa Orwee fami far more of menace to the foture of capitalism than Mars, Tn paccalay, T-would think that T might offer the {nied Stats ta capialist economy which could Rave gone on Uhrving fora long cine without the need of the imperial ex fuoroa which ins ruined all previous enpiaic societies incod Ing the Brith Empire. The United States could have developed a'home market uncer capitalism which would have provided a found and adequate bss for capitalist growth for an indefinite tine. “That it did not dos, and isnot likey to do so, i apparent to ai sudens of ent American economic history and world re lations Indeed, this country has gone off on a wild and unprece- deatediy expensive form of planetary expansion which does not even have the merit ofthe older imperiaism in paying its way, or mot, fra considerable period. Hence, thee evidence that Anerion cpm may cle more epi than wa the ee with any other capitalist society. This is likely to be especslly true long atthe main entodians of American capital are abiorbed withthe alleged treat of Marxism fom without while orn or upoting ie sede o Orvelansm and capital within oar own boundaries. Inerventionist 4s far more a threat to American capitalism than Marcioas fea aneoton, 1 shoud sty a word about Profesor Cox’ pro eioal recordin ofr st elate oh competence to write ot 7 and nature of capitals sociey. Few person could Be ter qualied forthe tsk. He had gradune work athe Un ee Chicago, where he recived his docorate Sng verity ie eld he studied under Proc orn po the em nigh, Jacob Viner and Harry A Mile soe Fan rg enone thery and itor price seonall Lown as the tanihior of Ma Weber Goose Kole. inory, was especially response for Proeaar Con, seen of te a OF «snd Lien penpene Inks Stat of Socology at Chicago, Protetor Gar ciao Depart Protesos Willam Fe Ogura, Heber Benes Sa npark, A. Re Radclife Brown, Eres W. Doyen bees Rober thd Samuel A. Sufi, cevaily the most leeaie MESN of sociology teachers then svalable in any inton fa aoe sia Heres again, Louis Wisth stresed the histor ap toe reo socal problems and insttdone, Sach taining would have been far more comprehensive and civenited dan that posed by anyother sor sade of Caplan Known to me. In ado! to thi howeret,Proleor Ciena wo years of tnsrocion at the Law School of Norte western University under the famous jurist, Profesor Jb Henry Wigmore. Hence, whatever anyone may think of fi profi qo seasonable person can deny that Profesor Cox i singly wel prepared write on it Tn 1048, he published a ively and Cxtended work on social cases and the socal hierarchy, Cate, Clas and Race, hin created mich healthy conor and ceived the George W. Carver Award ranted by Doubleday and Company. The present work was suggested by that stady and cera wo be even move comprehen and llengng Malibu, California Haanay Exaaee Bans u INTRODUCTION AN OVERVIEW Capitalism, as doubtless everyone knows, is the social and eco- nomic system which now exists in different degrees of develop. tment and decay in practically all countries outside the socialist rea Iv is the system which has reached is ulimate set) de ‘elopment in the United States and which, of course, Americans ie privileged to see in immediate operation. Iti in truth arate privilege to live at a time when any civilization has reached its pogees but to be alive at this period in the annals of capitalism ito be favored beyond the fortunes of all preceding mankind. Sometimes one could wish that he had been present in the Parthenon to listen to Pericles addres his fellow Athenians, or that he could have hobnobbed with the Roman people, let us sy, in the days of Hadrian and watched the deliberations of their senate, But the brilliance of such a dream seems pallid when com- pared to the societal experiences accesible to modern capitalist mnan. Indeed, one might in all simplicity go to New York and observe the awesome heart-beat of capitalism, or to Washington and sit in its vast legislative chambers to Jook into the faces of ‘men who make political and diplomatic decisions for control of the global arca of the system. He may on any day confront in the flesh or otherwise through press or Tadio, come into intimate ‘eontact with the business men whose phenomenal genits plan and direct the intricate cultural web. All through the history of capitalism in all its stages, is inet organizational products have impressed the world asthe Siti inalural achievement. ‘his penomenon, ay tbe isl ot be identified with the well-known tendency toward "oA ‘entrsm” characteristic of all peoples. The oustanding AP 3 societies have been centers of dynamic cultural relations serving ‘recognized schools attracting all other peoples aspiring to great. nner; and ths process has continued, though in somewhat altered form, down to our own day. What was said in wonder about Venice in 1450, about Amsterdam in 1650, and London in 1875, is now very nearly repeated in descriptions of New York. For in- stance, on April 2, 1856, the New York Times Magazine devoted. its entire isue to an enlightenment of outof-town visitors about the grandeur ofthat city. In one article Mr. Robert Moses says: ““Thig idand [Manhattan] will for a8 many years a8 we can see ahead, be the Hub of New York, the eynosure Of visiting eyes, the Ghuv of high values and congenion, the magnet which attrac thove ‘who sek Gn thelr vacations the finest of ine art the best muse, the Intec in jaio and tlevson, the busiest and most modern medical Centers Here are the mont rious shops with exrgoes more fabulous {han the gold and elver, preciou stone, ivory, sper and. peacocks ‘ought Solomon by the navies of Ophir and ‘Tasha Here to, are the choles foods, the biggest buildings, the most fablows hotels and homes the centers of management and finance, the oldest remain. in ins he Rev pa Bung And ee he Nu ee ing landonrk aisorbed bythe ey aft were ust another Rocke fete Genter Ours it town of vuperlaiven™ ‘This is no flippant boss; ic is a universal truth. Among other superlatives of importance is that New York represents the most powerful nation on earth; and so did Venice, Libeck, Amsterdam, and London. We shall in due course observe the specific recur” rence of tis trait of cultural preeminence in capitalist develop- But still more remarkable is the unprecedented viability of capitalist cultural contributions. ‘The great ancient civilizations tended to moulder avay and literally to become buried in the {lof time, But no one expects sucha fate to overtake capitalism. at is expected i a transformation rather than a rotting. AS We ‘hall atempt to show, this great cultural development did not begin by adopting the features of ancient Mediterranean civiliza FE Ate something essentially new, worthy of being called an ysetion-in fact, an innovation in’ contravention to existing ceptae cai oint has been properly emphasized by such per EeRing Seonomic historians as Werner Sombart and James West- mpson. The latter in his Economic and Social History of Europe in the Later Middle Ages concludes 4 Ages tas the esi of having invented by te own ae Mit ansneceuy forthe wh wena ey sees i ere law ave concen se sm mice and Cress nd es ee of exchange tn Se sere ery ts edn tne! tn his comrbuton to, Jouph Needham and Wales Pap tground of Modern Sctence, Profesor Comford sate the eke of Medes Ss Pon, Si sa Gein the stage of infancy or adolescence. The GraecoRoman, erfore was a seiGeontained growth, with its own infancy, ales: caltaraturity and decay.” Any attempt to understand capa Ge temixing what are supposed to be its essential material and vy Meateial cultural elements and then proceeding to ace thet Ban i thus foredoomed to frustration and confusion. Capitalist ity isa peculiar form of social organization, and its eltual AG aequised thelr significant meaning only to the extent that they have been defined in social situations inherent to the to tality of that organization. ‘Thus commerce becomes pital tommerce; banks, capitalist banks; production, capitalist pro- Gluction: war, capitalist war; lw, capitalist law; diplomacy, cap tale diplomacy, science, capitalist science; and so on. Ie, there fore, the form of social organization and its historical changes which we shall sek to depict and analyz. ea a Oe scl in the early Venetian social order as the prototype. This decision, 2s we shall se init sequence is by no means a rnter of neo Sequence. 1rhas not been popular among major studens of italism; and yet secking origins in alternative areas can Te 4uite diferent conceptions of the system. any Tet us, then, at thie early juncture, atempt 0 say whst we sean by capitalism, As a form of social orgpnizaton, capitalism is constituted elementally by a peculiar economic order, gover ment, and religions structure; and these, alshough rmatuay 1 dispensable, are yet related to cach other in descending onder &f imporaance. Economically, capitalism tends to form 2 sem 6 Retwork of national and territorial units bound together by ‘ercal and exploitative relationships in such a way that 4 0% tals nation is inconceivable outside this capitalist sytem. 8 of international law and traditional rules, weighted 9 EO 1 ‘most powerful nations, are developed and promis 6 regulate the atm Te shall be our purpose 10 identify and de. TEAC vem and ly oie eying mainly upon emptied see Wedel smume tee the Venedan cular tation locey the igueant origin of the sem and then ey to show that pene sepia ae content with ose amtmptions. We {Maloun eerie Venedan experience as captain, ‘an akipaton which we shall hope to demonstrate by subsequent inaiyde Venice, to be sure, wat nota lite United States, never thle ie may be shown that these two societies are genrialy sted toch ater vse fn othe mate an. The es of growth and line of development are unbroken. Pin our pretent day of ers and tani the achievements of capiatiom shoud not te minimize. They involve preeminent Cultural gains for mankind. The magnitude ofthese gins may be infened rom the following incomplete Ti: nieation of the word into astm of national interdependence efective liber Clan te human nod frm the fetes of religious mpticom nd ence secuariation ofthe dominant culture Banhment Af iational fear and bosilty toward persons of other societies ‘sublibmeat of an Inpersuble faith in the efcacy of science fn technology, and comprehension of the values of economia on in production; provison ofa milieu for growth of democracy and, llimsey, demonaration ofthe feasibility of purposely organizing the voces ofthe word in the intrest of huttan wel fae. I would probably be dificult to show that any part ofthis sei boon to mankind cold have avgen without Ge interven. ton of capitalism. Furthermore, the fact that they have been largely by-products of the essential ethos of the system does not detract from their value, ‘THE SUBJECT Although almost all socal science and modern history tend to ‘be one tovard the eps sytem, threat few sais oF capitalism as form of social organization. For some reaion OF ‘ther suc tudes in the West have been discouraged. And Yet some of the most outstanding thinkers in this are have adressed themselves othe subject. For instance, Ephraim scoff reminds Eg) Mm Weber “on assuning the editorship of the dre the leading principle that social science re- 6 most be oriented to the understanding of the modem serch Ut selared that because of is crudal imporance she med investigation of apiaism was an inperte a for itfences,” Let us note again that iti tn the social oc she sol anation of society that individual behavior eens cconoiance; and that in times of fundamental scil change, its Mhems of societal organization become essentially involved. roe have carried this study of capitalism only up to the point shall is exental cements had come into being and entered scr operation. There was no need, therefore, to go beyond ful inafesations in England. Although the United Sats, fteally since the frst World War, has assumed leadeahip of cxpeciera and has advanced capitals society to its greatest per fRodon, it has, nevertheles, made no fundamental contribution (Sthe economics, politics, or religion of capitalism. Infact, since Tal7, the system has been losing momenttim; but his phate of Capitalism seems to call for special and separate analysis. “There i, furthermore, a large area of understanding which involves a more theoretical approsch to the system, and which may be characterized as principles of capitalism. The present twrter has such a study im being. Our chapter, in this work, on tnereantilism come nearest to a statement of principles; but they fll embody the thought and advocacy mainly of practical men Concerned with the welfare of a rising capitalist society. They Sill serve, however, as a powerful emphasis ofthe more dsp: tive hinorical data in the preceeding chapters. THE QUESTION OF METHOD sey set tn a ee re ft on ‘cial investigation mast be determined by the maare oe aca ‘ary assumptions which indeed are sometimes: overlook ny " He eee pares ein rig mil barr many de fee sono ent ui nh lo Sy a wn a upto mh ly of er sn ang dn of oid commen, ance tbr fol a cl we ea eat pe Sw nee emp to ai cet, fod Sporn en oy ae lf ene ears Scene reali ve py sel ei Ay sel Poet Neri uctoego pep eee ey ars me ty rH ites Be sees fl me Roe Eo ie re, bt e Ke ic mei en na crn Samer po ne Hr sce of such endowment,” eT st eta te cmt yn Pa ea Pl be cece eye semen Seen Sey Ee eects aka aha cae era cea al he il mer Every people tends to have a somewhat clearly defined of looking at the world and of i rate Cieaiiy defines wey Lemire 18 is what they know of it cosmologically, geograph- ord 29 DOT, mythologically, and so on; and what they have ily, Coan eve their powers to deal with it are. Since the age of 10 bolfea, the world view of all other peoples has been the discon gubordinated to the dominant, sophisticated view progress Hence, to know has generally come to mean know- of Europe European point of view. Many social sient, cise 0 cconomist, have not only neglected the societal basis sree enomenon but have aso extended their theories of fiman behavior characteristic of capitalist society to the social am of all mankind. In his Introduction to English Economic Fatory and Theory Professor W. J. Ashley observes: js moder economists have taken for ther assumption conditions set Beymer times have begun (@ exist 0 earlier economic Teen on,tared, consciously or tnconsclously, on conditions then sti Gace the theories of the past mut be judged in relation to een dof the past, and not in‘veation to thse of the present Matin economig theories therefore, are not universally tue; they are Mode fer for the past, when conditions they postulate did not exit, tor for the fature eeny unless society becomes stationary, the on Sons will Rave changed.” We shall have occasion to refer agnin in the text to this error of clasical economics possibly with too much insistence; the prac ticeisgo much atthe basis of modem economic thought, however, that ie crops up repeatedly, In order to produce valid economic and sociological theory for modern times, the capitalist system rust not only be assumed but also understood. Any conclusion about human behavior beyond a very few fundamental tits 4stinguishing mankind from the lower animal, sch a8 his capac ity and propensity to learn, which is assumed to apply universally, 'sof litle oF no consequence for the purpose of understanding social processes. We must know something about the social ong ization, the ethos, the religious sanctions, the system of mythol0gy the juridical institutions, and so on of a people before we can op significant theories of their economic order and socal behavior. Furthermore, as Ashley points out, economic theory mieitarly theory of social process and thus ean never hops tain the spectacular logic, precision, and permanence of theories ofthe behavior of natural Phenomena, "The deadening sence cal economics," says Albion W. Small in Adam Smith and 9 fodern Sociology, “was due to it failure to see that human beings tod cts auodtMln towel tet wealteproduing sehen are in process of evolution; and that this whole social process i ‘a wibunal which must continually review the judgments recorded in parts or stages of the proces.” ‘Our methoe manifety sled defined, We shall be freed to rely heavily upon historical data without adopting the specific ‘methodology of historians. In other words, we shall be interested in the annals of social life not because of their singular traits but because of their persistence and regularity of occurrence. Further ‘more, because of the great scope of our interest and hence the impossibility of developing all the various aspects of our subject with the same intensity and mastery as the specialise, we shall not only have many reasons to regret that polymathy is beyond ‘our reach but also open ourselves to the charge of dilettancies, And yet, we shall not depend solely upon the prestige of any historical source for the validation of our data. When conclusion, Seem inconsistent with principles or hypotheses of capitalist de. velopment, we shall go as far back into primary materials as we are able to test them: For our purpose, history will be considered an account of the {ik and potentialities ofthe principal atributes of the capitalist fyatem and its societies. Its eis opportunity to see the syttem in enpective which provides the basis for conclusions and general: Stations regarding contemporary tendencies, ‘any Previous writers have justified the historical approach mnore of social situations. Profesor E. H. Carr, amehg.the Now gecent of them, worked it over in his introduction te The Ba ope and Profesor Joep Schumpeter faced wih the task of explaining the incidence of “busines Grea sane ae ni Ny foe rll nd eur, coon ney sry Acosta tcc soning o Se eam et gl Fo" ereater generality Albion Small remarked in his ion Small remarked in his essa on The Meaning of Social Siemacr Sid What SIME of obra in he soci ene, il Fone la ato the tng of oe gu lene: ore 2 b,x a ti cy a sere art they do, bac oop hn of tarde oct Sere a Se ce ac et tn deriving our own conclusions and in studying the theories of the authorities we shall thus be guided by what the facts were. a PART I — ESTABLISHMENT OF THE SYSTEM CHAPTER 1 CAPITALIST CITIES “To understand the nature ofthe capital sstem tb nees sar to examine the chaacternics and the proves of develop. tment of medieval and eatly modern Esvopean cites, Thief Tecaute the cies raed the stem, hence is tits may be recognized far more simply in them than in the more complex fnodern nation Tris important to recognize, however, that comminiis known a medieval cies involved quite diferent types of oil organ. Fraton, so that 2 desipion of one may Hotere at Su Hane chracteriaton of anoher. Moreove medic cies have rot alvaye been distinguished signifcaney fom sich ancient than centers as Rhodes, Athens Cartage, Delon, Aletandra, nd the veges of Roman towns particulary in Tay, We hal therefor, bin by atempting a typology of thee Of cours, there may be diferent bases of dasifcation. Pe haps the mort obvious o hese i geographic. ites tend to gt" ar stategic trading points. “Every kindof trade," observes Pro fer Pirenne, neceaily imply te existence of certain points of concentration, which ate determined by dhe configuration Contours of the Tand,inamech a1 they corespond tthe Rec Sites of the socal organization and the development of means of Communication. ‘The ends of gulls the mouths of fives the com fluence between two river, the spot at which a steam cee tobe tavigable, are places designed by nature for halting plas in ans ze of cities and posible, then, to account for the growth of their relative importance by indicating the natural incience of their location. ‘Fhe enittence of such cites as Ancwerp, Pst % ically al oes of an an, Landon, Ypres, Ghent and. vial ' Mian, London Yet Cine inthis ny. Ths ay C.W onde ee oppo tts eteon: na agedinl tem evenly, he here cog’ ts Sects tnd hry are deep and wide, and mot si tm a a Noa a ak pees since ny ee a ee Se ke Ven Fe ec te re oad athe Oak tei the ota es ite lua, wae we et ae ee ala dT ae eh ol ea ee ale a epee eerste ae i a ‘And yt geographical criteria donot distinguish meaningfully beceen andent and modern trading places, For certain purposes the tie my be dashed othervteaecording tothe extent 10 which they were eter manofatring, ading or francll cen ten, or even by their ype of manufacturing oF trading epecaliy. Religious eater such a Rome, Cologne, and Litge, difered th cern more or la important respects fom Libeck; London and Veni. Moreover, the cts may be grouped according to the Similar oftheir carters or conicsns which were frequently doped fom certain ceepable models such as, for example, thot of Venice, Leck o Rouen Our eyplogy, however, centers about certain indispensible conditions of caitlin developmen. the degre of sovereignty Of the cies ov thee related dependent functions. From this pin ef view, at shown inthe following chem, the structural aterm ofthe capes sytem may sveady begin to appeat, There i some ovelpping inthe csifcstion, but itis mended to em Plasze dominant trait: and no attempt, of course, is made to Incde all the cts which may be defined by these catagories. ‘TYPES OF CAPLTALIST CITIES fee an ean a ATION su) Amma ee sen Tithe Cologne, sete Fa Beant ihe Espo ‘TYPES OF CAPITALIST CITIES (continued) Gommes (DENTSUBJECT English Borugte DEEN JECT English Boroughs “Towns of Champagne (Grovins, Tropes Lagny BarSurAub, Lyon Permanent: ‘Bragey Antwerye Concenionary: Corstastinepe, No rod, London” (ete KONTORS OR STAPLES 1180, Subject: Tyre, Cala, Rergn, Gon (¢ 1580), Shangbal EMPORIA. ccs f Whip, Libon, Seve, Onmun, Hoag ong FAIRS. { Periodical: Fy ‘The national cities were the center of capitalist organization and action; they constituted the true home of capitalists. They succeeded in a very high degree to isolate themselves from feudal jm and to develop a distinct system of law and economic order, ‘Thus, the stronger the feudal lord and the more uninterrupted his dominion, the greater was the dificulty of organizing national: ‘capitalise cities. The French and English cities, caught up in the stream of developing capitalism, remained relatively dependent and subject particularly because of the settled state oftheir feudal overlordship, 5 ‘The fair towns were the foci of commerce and financial trans- action; it was in those communities that the most advanced prin-

    You might also like