Behind the Mirrors: The Psychology of Disintegration at Washington

Business began to be national in the tying together into systems the little dislocated railroads that local enterprise had laid down and in the creation of a national securities market for the distribution of ownership in the new combinations.

A new era opened when Gould and Fisk and Drew started at full speed their rival printing presses in Wall Street. Look over our whole drab political story from the death of Lincoln to the arrival of Roosevelt, more than a generation, and, if we did not preserve the names of our Presidents in our histories, how many names are there worth remembering? Garfield was shot, which was dramatic. Cleveland was a fat man who used long Latin words. He was also the first Democratic chief executive in more than thirty years. What else? Who else?

Meanwhile an amazing array of business personages diverted attention from the inconspicuous Hayeses, Arthurs, and McKinleys, who were the flower of our public life. Gould, Fisk, Drew, Hill, Carnegie, the Rockefellers, Harriman, Morgan, Ryan – business was fertile of men, politics sterile; you have to go back to the foundation of the government for a period so prolific in men, of the other sort, or to the age of Elizabeth or of Pericles for another as prolific in men, of still another kind. How could the dull sideshow in Washington compete with the big spectacle in New York?

These demigods of business were not only shining personalities; they were doing the work of making America great and rich; we all shared in the prosperity they were creating. To go back to the small town again, who was it increased the opportunities of the storekeeper, the neighboring farmer, or real estate holder? Was it the mayor and the common council by passing ordinances about street signs and sidewalk encumbrances? Or the manufacturer or railroad builder who put the town on the map, giving employment to labor or an outlet for its products?

The government at Washington occupied a place in our consciousness similar to that of the government of the small town. It was charged with our national defense, a function of such little importance that we had hardly an army or a navy. It conducted our economic defense, against the foreigner, with laws written, however, by business itself, which naturally knew best how it wanted to be defended; you could not, in your proper senses, suppose that the Hayeses, Arthurs, and McKinleys were wiser than the Carnegies, Hills, Morgans, or Harrimans. For the rest it was told severely to let well enough alone. To make assurance doubly sure that it would do so it was rather openly given over to the great men who were creating the national wealth.

Starting with the combination of the little speculatively built railroads into systems and the development of a security market to float the shares of stock in the new companies, business took on rapidly a more and more national character. Great bankers arose to finance the consolidations. An investing public with a wider horizon than that which used to put its money in local enterprises entrusted its funds in the hands of the great bankers or took its chances in the market for stocks. Industry went through a similar concentration. Stronger companies absorbed their weaker and less successful rivals. The same bankers who sat in the boards of directors of the railroads representing their investing public took their places in the directorate of manufacturing combinations.

The railroads seeking the business of the big industrial companies and the big industrial companies desiring favors from the railroads placed representatives in each others' boards. This interlocking created a national organization of business dominated by a few striking and spectacular figures.

The popular imagination was as much heated over the discovery of the United States as a single field of enterprise as the imagination of Europe had been centuries earlier over the discovery of the new world.

The psychology of the local industry period carried over into this new period of national industry. The whole country became one vast small town. The masters of industry, banking, and the railroads were the leading citizens. They were "putting the United States on the map," as the local creator of wealth had put the small town on the map. They were doing something vast, from which we all undoubtedly benefited. Perhaps we could not trace our advantage so immediately as we could to the enterprise of the man who brought population to our town, swelling the price of our real estate or increasing the sales at our stores. But what had been a matter of experience on a small scale was a matter of belief on a large scale. The same consequences must follow, with manifold abundance. And the nation was demonstrably growing rapidly, immensely richer; surely cause and effect.

Business had from the first taken on among us, as Mr. Lowes Dickinson remarks, a religious character; and when by a great thrust it overreached the bounds of locality and became national, its major prophets emerged. Mr. Van Wyck Brooks quotes Mark Twain as writing: "The words of a proprietor of a rich coal mine have a golden sound, and his common sayings are as if they were solid wisdom." How much more of this sacred character inhered in the heroes who created nationwide railroad systems, vast steelmaking consolidations, monopolies of oil and coal!

When a New York lawyer said of E. H. Harriman that he moved in spheres which no one else dare tread, he was putting, a little late, into words the national awe of the men who had overleapt the bounds of locality and bestrode the continent industrially, the heads of the vast business hierarchy. When Mr. Baer said that he operated the Reading Railroad by divine right he said only what a worshipping people had taught him to think. Those men did not use this half-religious language by accident; they crystallized into phrases the feeling of the country toward those who had done God's work of making it rich, making it successful.

Each like an unconscious Cervantes helped to laugh our industrial chivalry away.

How easy it is to believe about yourself what everyone believes about you! How hard not to! How easy to believe that you rule railroads by "divine right," or walk in "higher spheres," when the whole unexpressed consciousness of a hundred million people assigns you just such hieratic appurtenances and privileges. How doubt in the face of all this evidence? They identified themselves with Progress, and Progress was what ruled the world. If you have faith and if you are fortified with the faith of others, self-identification with one of the larger forces is not difficult. Was not what they were doing Progress, was it not the realization of that benignant will to the utter blossoming of chaos into utility which was planned in the beginning? Were they not instruments rather than mere men, instruments of the greater purpose of which America was the perfect work? If you believe in theocratic forces you believe also in chosen human agencies for carrying them out.

They were more than instruments of Progress. I have spoken of government by economic law as having challenged political government in the consciousness of the people. As a country we perhaps believe in economic law more firmly than any nation in the world. Wasn't America being produced in accordance with economic law and wasn't America one of the marvels of the earth? I asked a salesman recently, a man with no personal interests which would give him the prejudices of the business world, why he hated Henry Ford. "Because," he replied instantly and without hesitation, "he defies economic law." He spoke like a true American. To defy economic law and make money at it is like selling the Savior for twenty pieces of silver.

"The physical laws," says De Gourmont, "promulgated or established by the scientists, are confessions of ignorance. When they cannot explain a mechanism they declare its movements are due to a law. Bodies fall by virtue of the law of gravitation. This has precisely the same value in the serious order as the comic virtus dormitiva." In the promulgation of economic law our interest perverts the simple and just operation of our ignorance. In the field of physical phenomena we perceive a series of uniform events and call that uniformity a law. In the field of economic phenomena we perceive a series of events uniformly serving our interests and call that uniformity a law.

These greater business men of the past fruitful generation operated on the whole over a long period of falling prices. Wealth accumulated. You read about it in the government reports, dividing the total by the total population. The division thus effected was mighty assuring. Labor was better paid. Higher institutions of learning multiplied. Libraries housed in marble grew upon every crossroads. Intellectual as well as material needs were in process of being better satisfied. We were approaching an age when ink upon white paper, now so cheap, cheaper than ever in the pitiful past, should lift humanity to a new and higher level.

The evidence was conclusive. These greater business men were in supreme, in conspicuous direction of the country's development. The happiest results followed. They worked in harmony with economic law, for they prospered gloriously and one could no more break economic law and prosper than one could break criminal law and keep out of jail. Until Ford came no one could defy economic law with impunity.

And law and justice being two ideas that associate themselves together in the human mind, in a binder of optimism perhaps, like the disparate elements that form clinkers in a furnace, they were accomplishing that perfect work of the justice which inhered in things at the beginning, when tiny atoms with the urge to produce an earth fit for man to live on, to produce America in short, began to discover affinities for each other. No wonder they penetrated "higher spheres" ruled by "divine right," and that "golden words" dropped from their mouths. Progress, destiny, an instinct for economic law, it was much to unite one man.

Again, they were more than this. Men cannot be so universally looked to for the welfare of the nation as they were, without becoming in effect the government of that nation. Business and the government were one. Public opinion at that time would have regarded an administration which defied the great commercial interests as dangerous to the country's advancement. Lawyers like Mr. Knox or Mr. Root, who had proved their value to them, went to the Senate as their spokesmen. Able and ambitious men in both Houses of Congress, wishing power and influence, became their agents. The chairmen of the important committees of both houses were in their confidence and spoke with authority because of what they represented. Some of the virtue of the great, some shadow of divine right, descended upon them. Among valets the valet of the king is king.

We forget, in the great outcry that was raised a few years ago over the "invisible government," that the invisible government was once sufficiently visible, almost consciously recognized, and fully accepted. It seemed the most natural thing in the world that the men who were making the country rich, making it a nation economically, should work their will freely at Washington. We jealously guarded their liberties. Woe unto the legislator who would interfere with their freedom to contract, for example, for the labor of children, which we described as the freedom of children to sell their labor advantageously. Adult labor banding together to arrange terms of its own sale was felt to be a public enemy. Every age has its fetish; the medicine man who could exorcise the evil spirit in stone and bush was not a more privileged character than his successor at whose touch prosperity sprang out of the earth, at whose word the mysterious economic forces which might in their wrath prove so destructive, bowed and became kind.

Make a few individuals the embodiment of a national purpose that has long existed, unconscious and unquestioned, give them as you inevitably do in such a case the utmost freedom that is possible on this earth, let them be limited enough mentally so that they are blind to any other possible purpose; do all these things and you produce great men. It was an age of great men, Rockefellers, Carnegies, Morgans, Hills, Ryans, Harrimans, and a host of others, richer in personalities than any other period of American life except that which produced Washington, Hamilton, Franklin, Jefferson, and Marshall. They were the flowering of the whole pioneer civilization.

One hundred and fifty years of freedom has produced few free men. Perhaps these were all. They may not have been free intellectually. Charles Francis Adams writes of their kind: "I have known, and known tolerably well, a good many successful men, – 'big' financially, men famous during the last half century; and a less interesting crowd I do not care to encounter. Not one that I have ever known would I care to meet again, nor is one of them associated in my mind with the idea of humor, thought, or refinement."

Never mind. They were free in all the essential ways. The men of whom Adams wrote had no such sense of their limitations as he expressed. Only an Adams would then have had it, and the Adamses were not what M. Galtier of Le Temps suggested when, hastily absorbing the American spirit at Washington, he said to me: "I am reading The Education of Henry Adams: He was what you would call a typical American, was he not?"

An Adams, even Charles Francis Adams, writing of that time, was untypical enough, to have missed the point, which was not whether these men "'big' financially" were interesting, witty, thoughtful, or refined, but whether they were free. And they were; they were so sure of themselves, and public opinion was so sure of them, that they concentrated on the one great aim of that simple day, and did not waste themselves upon non-essentials like "humor, thought, or refinement."

I have a theory that we are wrong in ascribing the poverty of American literature and statesmanship to the richness of our business life. "All our best and ablest minds went into commerce," we say. We flatter ourselves. Mr. Carnegie, born in the days of Elizabeth, might not have been Shakespeare. Mr. Harriman was perhaps, after all, no mute Milton, Mr. Morgan no Michaelangelo.

These brave spirits developed in business not so much perhaps because of the national urge to "conquer a continent" as because in business, enjoying the immunity it then did, they found the utmost opportunity for self-expression, the one great measure of freedom which this free country afforded. A jealous public guarded their divine right from impious hands. They believed in themselves. The people believed in them. So the flowering of the pioneer age came, in such a race of men as are not on the earth today, and the rule of business reached its climax.

It was an autumn flowering, rich and golden like the Indian summer of New England culture, a sign that a cycle was run. Adams sniffing from the transcendental heights of Boston wrote: "a race of mere money-getters and traders." Remember the sneers in our cocksure press of those days at the "culture" of Boston? Boston has had its revenge. The words "mere money-getters" bit in. There were other objects in life beside pioneering the industrial opportunities of a whole continent just brought together into commercial unity. Mr. Morgan began to buy art. Mr. Carnegie began to buy libraries and started authorship himself. The men "'big' financially" began to look over their shoulders and see the shadows – as we all do now – where they a little before kept their eyes straight forward and saw the one clear vision, the truth, such as it was, that made them free.

I have traced that element in the American political consciousness, government by business, to its highest moment.

"Divine right" is only safe when it is implicit. When you begin to avow it, as Mr. Baer did, it is already in question. The national passion for equality began to work. Had not Mr. Carnegie confessed the weakness in his soul's fortress by writing a book? Had not Mr. Morgan by buying art suggested the one aim of pioneering on a grand scale might not be life's sole end?

Mr. Baer with his avowal, Mr. Carnegie and Mr. Morgan with their seeking of the broader satisfactions, Mr. Schwab behaving like a king in exile at the gaming tables of Monte Carlo, may have invited what followed. But they were only expressing in their own way the sense becoming general that pioneering was over and that its ideals were too narrow and too few – even if no clear sense was coming of what state and what ideals were to take their place. Men turn from leaders whose day of greatest usefulness is past and set up new leaders against them. Against the government by business the first great national unity that entered the American consciousness they began to erect the state, the national government at Washington.

No one meant to end government by business and substitute for it government by the people. Not for a moment. We devised a new set of checks and balances, like that between the various branches provided for in our Constitution, a new political organism which should equal and coexist with the one we already had. The government personified by Mr. Roosevelt was the check and balance to the government personified by Mr. Harriman and Mr. Morgan. Governments never die but merely recede in the national consciousness, like the old clothes which we keep in the attic. Thus revolutions never effect a revolution; democracy is only a Troy built upon nine other prehistoric Troys: beneath, you find aristocracy, rule by divine right, despotism, theocracy, and every other governance on which men in their invincible optimism have pinned their faith.

The revolution which Mr. Roosevelt brought about was the kind which exclaims loudly "malefactors of great wealth" while writing to Mr. Harriman "we are both practical men." It was the kind of revolution this country desired. The nation wished to eat its cake and have it, to retain government by business and have alongside it another government, as powerful, as interesting, as colorful, as rich in personalities, as the late autumn of pioneering had brought into gorgeous bloom.

Mr. Roosevelt's method with the new government was this: Senator Aldrich and Speaker Cannon representing the still powerful coexistent government by business in Congress, would call at the White House and tell the President just how far he could go and no further. They would emerge. A moment later the press in response to a summons would arrive. Mr. Roosevelt would say: "I have just sent for Mr. Aldrich and Mr. Cannon and forced them to accept my policy, etc." Nobody was deceived. Unlike the philosopher who made all knowledge his province, Mr. Roosevelt made all knowledge his playground, and not only all knowledge but all the arts, including the art of government.

In Mr. Roosevelt's day the two governments, government by business and political government, existed side by side, of about equal proportions; and no one really wished either to overtop the other. We were indulging in revolution with our customary prudence.

The human passion for equality which had risen against the last of those dominant figures, the last and greatest of the pioneers, and started to set up representatives of the public as great as they were, was singularly fortunate in its first manifestations. It "found a man," in that most amazing jack-of-all-trades, Mr. Roosevelt.

If business had its array of extraordinary personalities, the rival establishment had its Roosevelt, who surrounded himself with a shining group of amateurs, Mr. Root, Mr. Knox, General Wood, James Garfield, Mr. Pinchot, Mr. Knox Smith, the "Tennis Cabinet," to all of whom he succeeded in imparting some vividness from his own abounding personality. If pioneers from the days of Daniel Boone on have been romantic, amateurs are equally romantic. It was romance against romance.

The balance between the two governments did not last long. Government by business was declining. It was being extruded from the control of political affairs. Political government was rising. It was reaching out to control certain phases of business itself. The great pioneers of national industry were growing old. They were becoming self-conscious, vaguely aware of changing circumstances, casting about for solider foundations than "mere money getting," buying art and writing books, establishing foundations, talking foolishly about their "divine right," about the crime of "dying rich."

A race of gamblers came in their train who caricatured their activities. The great figures who were passing took long chances magnificently, pioneer fashion, "to strike it rich," to found industries or magnify avenues of trade. Their imitators, the Gateses, Morses, Heinzes, and – took long chances vulgarly for the excitement there was in them.

Railroads had to be "rescued" from them. Wall Street had to organize its Vigilantes against them.

I went as a reporter to see – once in New York and found him in his library drinking. He sent for his servant, ordered six bottles of champagne at once, and after his man had gone opened the whole six, one after another, on his library rug. He had to exhibit in some way his large manner of doing things, and this was the best way he could think of at the moment. He belonged to a fevered race, intoxicated with the idea of bigness, juggling millions about to no more useful end than that of pouring champagne on a carpet. They were the reductio ad absurdum of the pioneer.

The public no longer put its faith blindly as before in those romantic figures, the great industrial pioneers, those Mississippi River pilots who knew every rock and reef in the river. Stripped of much power and prestige, no longer looked to without question for the safety of the country, that magnificent species, the great pioneer, disappeared. It is as dead and gone as that equally magnificent species the Mississippi pilot of Mark Twain's day.

The legitimate succession was the dynasty – it was the dynasty that destroyed belief in the divine right of kings – of the second generation, of the younger Stillman, of the younger Rockefeller, competent but unremarkable, of the younger Morgan, more capable than the rest, doubtless, but compare his countenance with the eagle mien of his predecessor.

I used often to discuss with Mr. Roosevelt the members of the dynasty. He had no illusions. We both knew well a second-generation newspaper proprietor, a young man of excellent character, as prudent as the earlier generation had been daring, a petty King who always had an aspiring Mayor of the palace at his elbow, inclined to go to sleep at his post from excessive watching of his property. As we would go over the names in the dynasty, Mr. Roosevelt would say almost invariably: "I can't describe him better to you than to say he's another – ," naming our mutual acquaintance, one of the many of his sort into whose hands by inheritance the control of business has descended.

Whatever the reason is, whether the inertia of large organization and the weakening of competition have favored the remaining in power of the second generation, whether we have evolved but one great type, the pioneer, whose day is past, and have not yet differentiated the true business man any more than we have differentiated the true statesman; whether that psychological change which I have sought to trace, that denial of freedom which once was the pioneers' – the new laws, the hard restraints operating now upon business as upon everything else and enforcing conformity – there are today no Titans, no one stealing fire from the heaven of Progress for the benefit of the human race – unless Henry Ford – no Carnegies, Morgans, Rockefellers, Harrimans, of the blessed nineties.

The old sureness is gone. The great pioneers were never assailed by doubts: they went straight forward, wearing the blinkers of a single aim, which kept their eyes like those of harnessed horses in the narrow road; God was with them, Progress was with them, Public Opinion was with them, the government at Washington was with them.

But their successors, like everyone else, look over their shoulders and see the shadows: see the government at Washington and attach a comic importance to that bewildered figure; just as the government at Washington looks over its shoulder and sees at New York the government by business, its traditional master, and wishing a master, is unaware that the twilight of the gods is come. And both see that greatest of all shadows, Public Opinion, the new monster of Frankenstein which everyone feeds with propaganda, and fears. These three things were all one in the bright days of the great pioneers, and in that perfect unity everyone was sure, so sure, and the few were free, so free!