But this is only a phase; and inevitably, by the logic of events, there supervenes upon it another on which, it would appear, America is just now entering. With all her natural resources distributed among individuals or corporations, and with the tide of immigration unchecked, she begins to feel the first stress of the situation of which the tension in Europe has already become almost intolerable. It is the situation which cannot fail to result from the system of private property and inheritance established throughout the Western world. Opportunities diminish, classes segregate. There arises a caste of wage-earners never to be anything but wage-earners; a caste of property-owners, handing on their property to their descendants; and substantially, after all deductions have been made for exaggeration and simplification, a division of society into capitalists and proletarians. American society is beginning to crystallise out into the forms of European society. For, once more, America is nothing new; she is a repetition of the old on a larger scale. And, curiously, she is less "new" than the other new countries. Australia and New Zealand for years past have been trying experiments in social policy; they are determined to do what they can to prevent the recurrence there of the European situation. But in America, there is no sign of such tendencies. The political and social philosophy of the United States is still that of the early English individualists. And, no doubt, there are adequate causes, if not good reasons for this. The immense wealth and size of the country, the huge agricultural population, the proportionally smaller aggregation in cities has maintained in the mass of the people what I have called the "pioneer" attitude. Opportunity has been, and still is, more open than in any other country; and, in consequence, there has hardly emerged a definite "working class" with a class consciousness. This, however, is a condition that cannot be expected to continue. America will develop on the lines of Europe, because she has European institutions; and "labour" will assert itself more and more as an independent factor in politics.
Whether it will assert itself successfully is another matter. At present, as is notorious, American politics are controlled by wealth, more completely, perhaps, than those of any other country, even of England. The "corporations" make it a main part of their business to capture Congress, the Legislatures, the Courts and the city governments; and they are eminently successful. The smallest country town has its "boss," in the employ of the Railway; the Public Service Corporations control the cities; and the protected interests dominate the Senate. Business governs America; and business does not include labour. In no civilised country except Japan is labour-legislation so undeveloped as in the States; in none is capital so uncontrolled; in none is justice so openly prostituted to wealth. America is the paradise of plutocracy; for the rich there enjoy not only a real power but a social prestige such as can hardly have been accorded to them even in the worst days of the Roman Empire. Great fortunes and their owners are regarded with a respect as naïf and as intense as has ever been conceded to birth in Europe. No American youth of ambition, I am told, leaves college with any less or greater purpose in his heart than that of emulating Mr. Carnegie or Mr. Rockefeller. And, on the other hand, it must be conceded, rich men feel an obligation to dispose of their wealth for public purposes, to a degree quite unknown in Europe. By these lavish gifts the people are dazzled. They feel that the millionaire has paid his ransom; and are ready to forgive irregularities in the process of acquiring wealth when they are atoned for by such splendid penance. Thus the rich man in America comes to assume the position of a kind of popular dictator. He is admired on account of his prowess and forgiven on account of his beneficence. And, since every one feels that one day he may have the chance of imitating him, no one judges him too severely. He is regarded not as the "exploiter," the man grown fat on the labour of others. Rather he is the type, the genius of the American people; and they point to him with pride as "one of our strong men," "one of our conservative men of business."