Section XVII: The rT ansformation of Liberalism Contemporary Civilization (Ideas and Institutions and Nationalism, 1871-1914 of Western Man) 1958 2. The ewN Liberalism Robert L. Bloom Gettysburg College Basil L. Crapster Gettysburg College Harold L. Dunkelberger Gettysburg College See next page for additional authors Follow this and additional works at: https://cupola.gettysburg.edu/contemporary_sec17 Part of the Political History Commons, and the Political Science Commons Share feedback about the accessibility of this item. Bloom, Robert L. et al. "2. The eN w Liberalism. Pt. XVII: The rT ansformation of Liberalism and Nationalism, 1871-1914." Ideas and Institutions of Western Man (Gettysburg College, 1958), 15-26. This is the publisher's version of the work. This publication appears in Gettysburg College's institutional repository by permission of the copyright owner for personal use, not for redistribution. Cupola permanent link: https://cupola.gettysburg.edu/ contemporary_sec17/3 This open access book chapter is brought to you by The uC pola: Scholarship at Gettysburg College. It has been accepted for inclusion by an authorized administrator of The uC pola. For more information, please contact [email protected]. 2. The ewN Liberalism Abstract The as me people who, in the years 1871-1914, were remodeling their constitutions and introducing more and more of the institutions of democracy were also enlarging the tasks for their government to perform. In the laissez-faire state advocated by political economists in the preceding generation, the government had been almost a mere policeman, a night watchman. Now, in the beginnings of what a later age would call the welfare state, the government was tending to assume new roles: benevolent parent, social engineer, landlord, philanthropist, master mind, and even - or so its critics alleged - Santa Claus.Armed with new powers of compulsion exercised in the name of the general welfare, the state now entered areas where hitherto it had acted only exceptionally, or not at all. [excerpt] Keywords Contemporary Civilization, Liberalism, Democracy, Welfare State, Laissez-Faire Disciplines Political History | Political Science Comments This is a part of Section XVII: The rT ansformation of Liberalism and Nationalism, 1871-1914. The Contemporary Civilization page lists all additional sections of Ideas and Institutions of Western Man, as well as the Table of Contents for both volumes. More About Contemporary Civilization: From 1947 through 1969, all first-year Gettysburg College students took a two-semester course called Contemporary Civilization. The ourc se was developed at President Henry W.A. Hanson’s request with the goal of “introducing the student to the backgrounds of contemporary social problems through the major concepts, ideals, hopes and motivations of western culture since the Middle Ages.” Gettysburg College professors from the history, philosophy, and religion departments developed a textbook for the course. The first edition, published in 1955, was called An Introduction to Contemporary Civilization and Its Problems. A second edition, retitled Ideas and Institutions of Western Man, was published in 1958 and 1960. It is this second edition that we include here. The opc y we digitized is from the Gary T. Hawbaker ’66 Collection and the marginalia are his. Authors Robert L. Bloom, Basil L. Crapster, Harold L. Dunkelberger, Charles H. Glatfelter, Richard T. Mara, Norman E. Richardson, and W. Richard Schubart This book chapter is available at The uC pola: Scholarship at Gettysburg College: https://cupola.gettysburg.edu/ contemporary_sec17/3 2. The New Liberalism The same people who, in the years 1871-1914, were remodel­ ing their constitutions and introducing more and more of the institutions of democracy were also enlarging the tasks for their government to perform. In the laissez-faire i=state advo­ cated ^ political Pf-nnnmif^ts in thp nrRcedin^ generation. the gpvemnrgnt had hp^pn almncit a mp-rp pr>1 i rpman beginnings.-xxL,what a I n tor uge would--ea4J=~tJU&JSieJ-- Jar§ ^ate, tTie^governTnent t'7 benev-oie^-pareht. n1 enaii r'Tandrord. pM1anthropist, master mind^.>-aB4».eve3i_-- or so its critics alleged —-l;:ignta Cran^r Armed with new powers of compulsion exercised in the Tiuffie of the general welfare, the state now entered areas where hitherto it had acted only exceptionally, or not at alio One new type of state activity was.ja,ww<lly""^«signed^ to protect society.,iind„£]^~^^^ th^y ware being victim- IzeH"" bv bip- hnqinocLc; H&re..s everal alternatives were open to leyislajtor-s.. anH^^K'ere often tried simultaneously. Que solu­ tion was for the state_tcMbuv UP the business and run it„ This h^ long been the practice^'v^h "the postal" service and it was now widely adopted in Europe for such public utilities as the telephone, telegraph, and railway systems. Another solution Wa^tua-.-XaOllata--.tiie.^mann<>r--^-n 'whi . The Interstate Commerce Commission in the United States, for example, was established in 1887 to set railway rates and con­ ditions of service. Similar regulation was applied in Britain to her privately-owned transportation system. State-owned or state-controlled central banks, and the Federal Reserve System in the United States, regulated banking. A variant type of control of private enterprise was the establishment of standards of "fair" competition which, it was hoped, would prevent abuse of the competitive system. Pure food and drug Jaws that,.j3roxiux;±a..^b^^^ libmlpri with van arrnrat.e ptlon of their cfontents so that the buyer might make a" in+oiiip-pnt choice. Ah AiheFfcan experiment, almost unique, was begun by the Shermaji Anti-Trust Act (1890) and extended by subsequent legislation, whereby trusts, monopolies, and other combinations which * James Bryce, The American Commonwealth,,2nd edition revised (London; Macmillan and Company, 1891), pp. 463, 465-473. XVII p. 16 restrained trade were outlawed iri that frpp pompfttitir>n Another type of social legislation which aggumfaH now jip- portance attempted to cushion the impact of industrial—capitiaJ.w Ism orr~TKe~f?iTir1 oyffiffi. In this as in the "TnffuFfrial Revolution "TEself Great Britain was the leader. Her promising Factory Acts (1833 and 1844), Mines Act (1842)^ and Ten Hours Law (1847) were extended by later enactments regulating conditions of em­ ployment. Germany lagged behind in this type of legislation, but her own laws on health i nsnrancp (1883), wn-rkmpn" s r.nmpftn- sation for industrial accidents (1884), and old age insmranc-e (IrSBbi j . JTnanced by contributionH f-rrtni ^mpl nyeff, the state, set a pattern which Britain was just beginning to copy in 1914. The first reasonably successful scheme of jpiibJJ-C insurance against unemployment was introduced on a voluntary b^sis in the Belgian city oT"Ghent in 1901. Britain adopted a compulsory system of unemployment insurance in 1909. Similar social legislation was eventually introduced in France, the United States, and elsewhere, but only after a time lag. It was by no means always the central govp>rnmP!nt whi-ch initiated and administered such social legislation. In Britain, sTunr~cTea^^aii^'*^n a scale was first undertaken by forward-looking city officials in such urban centers as Birming­ ham. There and elsewhere local management of public utilities gave rise to the term "gas"~ahd water socTalism" to cover—Sjach municipal^ctivitiesT Fri Vienna, Christian Democratic city •TartTief^]^bvided™^br both the quick and the dead, with munici­ pal housing developments and a municipal crematorium„ Whether on the local or on the national level, the implementation of such social legislation placed a growing power in the hands of the civil service^ thereby evoking an alarming picture of a type of government not accurately envisaged by Aristotle, a bureaucracy, How the public treasury was to finance these services ^as a p-i~r.h I 1jn11 th" th^-j X' <;ii problem had been rendered more acute by the added expense of the international armament race. It had been early recognized that the way social legislation was financed would itself have a marked social effect. To Britain belonggu^the ,...aRldQiTi c1aimed..^,i^T ^g l iKe^ 1 ncom^g^ tax . first in T799-1815, and then of reimposing it permanently in 1842. Jteus- gia in 1851, Germany and the United States in 1913, and France in 1917 foTlowpH gvrrr~ Everywhere a special cause of tj^s tax's unpopularity was the invpRti P'ati on of private finances wJiigh, it introduced. To fiscal officials it was a godsend, the more W^Xcome^Because it could be easily adjusted to produce the amount of revenue needed. The leveling characteristic of a progressive income tax^ introdu^d on the ground that taxation should b^^^ pay, was enh^ced bx,,.grailii^ exempTions to 1 nw-i nr.nmfi fami 1 TP::Cimposition of sur- taxes on fi"cB""pe6"ple. A similar graduated principle was intro- ^[uced" wlduly Tn~Tnlieritance taxes, thereby attacking accumulations XVII p. 17 of capital in private hands. The mounting burden of direct taxes and inb^r- Itanc6~1&eiiaa.-fi^alaia-.wHv.« people advocate^^tapping «-irtexiia- tive sources of jca3ZBime..JJirough higher indirec^^ , such as ^ cu&toms-.dii4ie«-r^ Increasing foreign competition, a^d the ambi­ tion of nation-states to find security in a troubled world through encouragement of domestic industries, were also major considerations. The bright hopes of midni -«"*»Trtirry 1 iberals thatJhe^^ w was, moyinfi^toward a-per4©d-af inter- n^i_onal free^^ t after 187X„ias one Jay, onelttlifiL- worlc[^s""governments erected protective tariff walls and then, raisisd them. By 1914, Britain was the only major state still fairttiful to'The dream of Cobden and Bright, and even there the protectionist heresy was preached. As the foregoing paragraphs have indicated, it was not only in tariff policy that the state was assuming greater responsibility in the social and economic order.