Theodor Herzl, The Jewish State
Chapter 3



III.

T h e .. J e w i s h .. C o m p a n y

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OUTLINES

The Jewish Company is partly modeled on the lines of a great land-acquisition company. It might be called a Jewish Chartered Company, though it cannot exercise sovereign power, and has other than purely colonial tasks.

The Jewish Company will be founded as a joint stock company subject to English jurisdiction, framed according to English laws, and under the protection of England. Its principal center will be London. I cannot tell yet how large the Company's capital should be; I shall leave that calculation to our numerous financiers. But to avoid ambiguity, I shall put it at a thousand million marks (about £50,000,000 or $200,000,000); it may be either more or less than that sum. The form of subscription, which will be further elucidated, will determine what fraction of the whole amount must be paid in at once.

The Jewish Company is an organization with a transitional character. It is strictly a business undertaking, and must be carefully distinguished from the Society of Jews.

The Jewish Company will first of all convert into cash all vested interests left by departing Jews. The method adopted will prevent the occurrences of crises, secure every man's property, and facilitate that inner migration of Christian citizens which has already been indicated.

NON-TRANSFERABLE GOODS

The non-transferable goods which come under consideration are buildings, land, and local business connections. The Jewish Company will at first take upon itself no more than the necessary negotiations for effecting the sale of these goods. These Jewish sales will take place freely and without any serious fall in prices. The Company's branch establishments in various towns will become the central offices for the sale of Jewish estates, and will charge only so much commission on transactions as will ensure their financial stability.

The development of this movement may cause a considerable fall in the prices of landed property, and may eventually make it impossible to find a market for it. At this juncture the Company will enter upon another branch of its functions. It will take over the management of abandoned estates till such time as it can dispose of them to the greatest advantage. It will collect house rents, let out land on lease, and install business managers -- these, on account of the required supervision, being, if possible, tenants also. The Company will endeavor everywhere to facilitate the acquisition of land by its tenants, who are Christians. It win, indeed, gradually replace its own officials in the European branches by Christian substitutes (lawyers, etc.); and these are not by any means to become servants of the Jews; they are intended to be free agents to the Christian population, so that everything may be carried through in equity, fairness and justice, and without imperiling the internal welfare of the people.

At the same time the Company will sell estates, or, rather, exchange them. For a house it will offer a house in the new country; and for land, land in the new country; everything being, if possible, transferred to the new soil in the same state as it was in the old. And this transfer will be a great and recognized source of profit to the Company. "Over there" the houses offered in exchange will be newer, more beautiful, and more comfortably fitted, and the landed estates of greater value than those abandoned; but they will cost the Company comparatively little, because it will have bought the ground very cheaply.

PURCHASE OF LAND

The land which the Society of Jews will have secured by international law must, of course, be privately acquired. Provisions made by individuals for their own settlement do not come within the province of this general account. But the Company will require large areas for its own needs and ours, and these it must secure by centralized purchase. It will negotiate principally for the acquisition of fiscal domains, with the great object of taking possession of this land "over there" without paying a price too high, in the same way as it sells here without accepting one too low. A forcing of prices is not to be considered, because the value of the land will be created by the Company through its organizing the settlement in conjunction with the supervising Society of Jews. The latter will see to it that the enterprise does not become a Panama, but a Suez.

The Company will sell building sites at reasonable rates to its officials, and will allow them to mortgage these for the building of their homes, deducting the amount due from their salaries, or putting it down to their account as increased emolument. This will, in addition to the honors they expect, will be additional pay for their services.

All the immense profits of this speculation in land will go to the Company, which is bound to receive this indefinite premium in return for having borne the risk of the undertaking. When the undertaking involves any risk, the profits must be freely given to those who have borne it. But under no other circumstances will profits be permitted. Financial morality consists in the correlation of risk and profit. BUILDINGS

The Company will thus barter houses and estates. It must be plain to any one who has observed the rise in the value of land through its cultivation that the Company will be bound to gain on its landed property. This can best be seen in the case of enclosed pieces of land in town and country. Areas not built over increase in value through surrounding cultivation. The men who carried out the extension of Paris made a successful speculation in land which was ingenious in its simplicity; instead of erecting new buildings in the immediate vicinity of the last houses of the town, they bought up adjacent pieces of land, and began to build on the outskirts of these. This inverse order of construction raised the value of building sites with extraordinary rapidity, and, after having completed the outer ring, they built in the middle of the town on these highly valuable sites, instead of continually erecting houses at the extremity.

Will the Company do its own building, or employ independent architects! It can, and will, do both. It has, as will be shown shortly, an immense reserve of working power, which will not be sweated by the Company, but, transported into brighter and happier conditions of life, will nevertheless not be expensive. Our geologists will have looked to the provision of building materials when they selected the sites of the towns.

What is to be the principle of construction?

WORKMEN'S DWELLINGS

The workmen's dwellings (which include the dwellings of all operatives) will be erected at the Company's own risk and expense. They will resemble neither those melancholy workmen's barracks of European towns, nor those miserable rows of shanties which surround factories; they will certainly present a uniform appearance, because the Company must build cheaply where it provides the building materials to a great extent; but the detached houses in little gardens will be united into attractive groups in each locality. The natural conformation of the land will rouse the ingenuity of our young architects, whose ideas have not yet been cramped by routine; and even ii the people do not grasp the whole import of the plan, they will at any rate feel at ease in their loose clusters. The Temple will be visible from long distances, for it is only our ancient faith that has kept us together. There will be light, attractive, healthy schools for children, conducted on the most approved modern systems. There will be continuation-schools for workmen, which will educate them in greater technical knowledge and enable them to be come intimate with the working of machinery. There will be places of amusement for the proper conduct of which the Society of Jews will be responsible.

We are, however, speaking merely of the buildings at present, and not of what may take place inside of them.

I said that the Company would build workmen's dwellings cheaply. And cheaply, not only because of the proximity of abundant building materials, not only because of the Company's proprietorship of the sites, but also because of the non-payment of workmen.

American farmers work on the system of mutual assistance in the construction of houses. This childishly amicable system, which is as clumsy as the block-houses erected, can be developed on much finer lines.

UNSKILLED LABORERS

Our unskilled laborers, who will come at first from the great reservoirs of Russia and Rumania, must, of course, render each other assistance, in the construction of houses. They will be obliged to build with wood in the beginning, because iron will not be immediately available. Later on the original, inadequate, makeshift buildings will be replaced by superior dwellings.

Our unskilled laborers will first mutually erect these shelters; and then they will earn their houses as permanent possessions by means of their work -- not immediately, but after three years of good conduct. In this way we shall secure energetic and able men, and these men will be practically trained for life by three years of labor under good discipline. I said before that the Company would not have to pay these unskilled laborers. What will they live on?

On the whole, I am opposed to the Truck system,[the practice of paying the workman's wages in goods instead of money.] but it will have to be applied in the case of these first settlers. The Company provides for them in so many ways, that it may take charge of their maintenance. In any case the Truck system will be enforced only during the first few years, and it will benefit the workmen by preventing their being exploited by small traders, landlords, etc. The Company will thus make it impossible from the outset for those of our people, who are perforce hawkers and peddlers here, to reestablish themselves in the same trades over there. And the Company will also keep back drunkards and dissolute men. Then will there be no payment of wages at all during the first period of settlement. Certainly, there will be wages for overtime.

THE SEVEN-HOUR DAY

The seven-hour day is the regular working day.

This does not imply that wood-cutting, digging, stonebreaking, and a hundred other daily tasks should only t performed during seven hours. Indeed not. There will t fourteen hours of labor, work being done in shifts of three and a half hours. The organization of all this will be military in character; there will be commands, promotions and pensions, the means by which these pensions are provided being explained further on.

A sound man can do a great deal of concentrated work in three and a half hours. After an interval of the same length of time -- which he will devote to rest, to his family and to his education under guidance -- he will be quite fresh for work again. Such labor can do wonders. The seven-hour day thus implies fourteen hours of joint labor -- more than that cannot be put into a day.

I am convinced that it is quite possible to introduce the seven-hour day with success. The attempts to do so in Belgium and England are well known. Some advance political economists who have studied the subject, declare that a five-hour day would suffice. The Society of Jew and the Jewish Company will, in any case, make net and extensive experiments which will benefit the other nations of the world; and if the seven-hour day prove itself practicable, it will be introduced in our future State as the legal and regular working day.

Meantime, the Company will always allow its employee the seven-hour day; and it will always be in a position to do so.

The seven-hour day will be the call to summon our people in every part of the world. All must come voluntarily, for ours must indeed be the Promised Land. ..

Whoever works longer than seven hours receives his additional pay for overtime in cash. Seeing that all his needs are supplied, and that those members of his family who are unable to work are provided for by transplanted and centralized philanthropic institutions, he can save a little money. Thrift, which is already a characteristic of our people, should be greatly encouraged, because it will, in the first place, facilitate the rise of individuals to higher grades; and secondly, the money saved will provide an immense reserve fund for future loans. Overtime will only be permitted on a doctor's certificate, and must not exceed three hours. For our men will crowd to work in the new country, and the world will see then what an industrious people we are.

I shall nut describe the mode of carrying out the Truck system, nor, in fact, the innumerable details of any process, for fear of confusing my readers. Women will not be allowed to perform any arduous labor, nor to work overtime.

Pregnant women will be relieved of all work, and will be supplied with nourishing food by the Truck. We want our future generations to be strong men and women.

We shall educate children as we wish from the commencement; but this I shall not elaborate either.

My remarks on workmen's dwellings, and on unskilled laborers and their mode of life, are no more Utopian than the rest of my scheme. Everything I have spoken of is already being put into practice, only on an utterly small scale, neither noticed nor understood. The "Assistance par le Travail," which I learned to know and understand in Paris, was of great service to me in the solution of the Jewish question.

RELIEF BY LABOR

The system of relief by labor which is now applied in Paris, in many other French towns, in England, in Switzerland, and in America, is a very small thing, but capable of the greatest expansion.

What is the principle of relief by labor?

The principle is: to furnish every needy man with easy, unskilled work, such as chopping wood, or cutting faggots used for lighting stoves in Paris households. This is a kind of prison-work before the crime, done without loss of character. It is meant to prevent men from taking to crime out of want, by providing them with work and testing their willingness to do it. Starvation must never be allowed to drive men to suicide; for such suicides are the deepest disgrace to a civilization which allows rich men to throw tid-bits to their dogs.

Relief by labor thus provides every one with work. But the system has a great defect; there is not a sufficiently large demand for the production of the unskilled workers employed, hence there is a loss to those who employ them; though it is true that the organization is philanthropic, and therefore prepared for loss. But here the benefaction lies only in the difference between the price paid for the work and its actual value: Instead of giving the beggar two sous, the institution supplies him with work on which it loses two sous. But at the same time it converts the good-for-nothing beggar into an honest breadwinner, who has earned perhaps 1 franc 50 centimes. 150 centimes for 10! That is to say, the receiver of a benefaction in which there is nothing humiliating has increased it fifteenfold! That is to say, fifteen thousand millions for one thousand millions !

The institution certainly loses 10 centimes. But the Jewish Company will not lose one thousand millions; it will draw enormous profits from this expenditure .

There is a moral side also. The small system of relief by labor which exists now preserves rectitude through industry till such time as the man who is out of work finds a post suitable to his capacities, either in his old calling or in a new one. He is allowed a few hours daily for the purpose of looking for a place, in which task the institutions assist him.

The defect of these small organizations, so far, has be that they have been prohibited from entering into competition with timber merchants, etc. Timber merchants are electors; they would protest, and would be justified in protesting. Competition with State prison-labor has al been forbidden, for the State must occupy and feed criminals.

In fact, there is very little room in an old-establish society for the successful application of the system "Assistance par le Travail." But there is room in a new society.

For, above all we require enormous numbers of unskilled laborers to do the first rough work of settlement, to lay down roads, plant trees, level the ground, construct railroads, telegraph installations, etc. All this will be carried out in accordance with a large and previously settled plan.

COMMERCE

The labor carried to the new country will naturally create trade. The first markets will supply only the absolute necessities of life; cattle, grain, working clothes, tools, arms -- to mention just a few things. These we shall obliged at first to procure from neighboring States, or from Europe; but we shall make ourselves independent as soon as possible. The Jewish entrepreneurs will soon realize the business prospects that the new country offers.

The army of the Company's officials will gradually introduce more refined requirements of life. (Officials include officers of our defensive forces, who will always form about a tenth part of our male colonists. They will be sufficiently numerous to quell mutinies, for the majority of our colonists will be peaceably inclined.)

The refined requirements of life introduced by our officials in good positions will create a correspondingly improved market, which will continue to better itself. The married man will send for wife and children, and the single for parents and relatives, as soon as a new home is established "over there." The Jews who emigrate to the United States always proceed in this fashion. As soon as one of them has daily bread and a roof over his head, he sends for his people; for family ties are strong among us. The Society of Jews and the Jewish Company will unite in caring for and strengthening the family still more, not only morally, but materially also. The officials will receive additional pay on marriage and on the birth of children, for we need all who are there, and all who will follow.

OTHER CLASSES OF DWELLINGS

I described before only workmen's dwellings built by themselves, and omitted all mention of other classes of dwellings. These I shall now touch upon. The Company's architects will build for the poorer classes of citizens also, being paid in kind or cash; about a hundred different types of houses will be erected, and, of course, repeated. These beautiful types will form part of our propaganda. The soundness of their construction will be guaranteed by the Company, which will, indeed, gain nothing by selling them to settlers at a fixed sum. And where will these houses be situated? That will be shown in the section dealing with Local Groups.

Seeing that the Company does not wish to earn anything on the building works but only on the land, it will desire as many architects as possible to build by private contract. This system will increase the value of landed property, and it will introduce luxury, which serves many purposes. Luxury encourages arts and industries, paving the way to a future subdivision of large properties

Rich Jews who are now obliged carefully to secrete their valuables, and to hold their dreary banquets behind lowered curtains, will be able to enjoy their possessions in peace "over there." If they cooperate in carrying out this emigration scheme, their capital will be rehabilitated and will have served to promote an unexampled undertaking. If in the new settlement rich Jews begin to rebuild their mansions which are stared at in Europe with such envious eyes, it will soon become fashionable to live over there in beautiful modern houses.

SOME FORMS OF LIQUIDATION

The Jewish Company is intended to be the receiver and administrator of the non-transferable goods of the Jews.

Its methods of procedure can be easily imagined in the case of houses and estates, but what methods will it adopt in the transfer of businesses?

Here numberless processes may be found practicable, which cannot all be enlarged on in this outline. But none of them will present any great difficulties, for in each case the business proprietor, when he voluntarily decides to emigrate, will settle with the Company's officers in his district on the most advantageous form of liquidation.

This will most easily be arranged in the case of small employers, in whose trades the personal activity of the proprietor is of chief importance, while goods and organization are a secondary consideration. The Company will provide a certain field of operation for the emigrant's personal activity, and will substitute a piece of ground, with loan of machinery, for his goods. Jews are known to adapt themselves with remarkable ease to any form of earning a livelihood, and they will quickly learn to carry on a new industry. In this way a number of small traders will become small landholders. The Company will, in fact, be prepared to sustain what appears to be a loss in taking over the non-transferable property of the poorest emigrants; for it will thereby induce the free cultivation of tracts of land, which raises the value of adjacent tracts.

In medium-sized businesses, where goods and organization equal, or even exceed, in importance, the personal activity of the manager, whose larger connection is also non-transferable, various forms of liquidation are possible. Here comes an opportunity for that inner migration of Christian citizens into positions evacuated by Jews. The departing Jew will not lose his personal business credit, but will carry it with him, and make good use of it in a new country to establish himself. The Jewish Company will open a current bank account for him. And he can sell the goodwill of his original business, or hand it over to the control of managers under supervision of the Company's officials. The managers may rent the business or buy it, paying for it by installments. But the Company acts temporarily as curator for the emigrants, in superintending, through its officers and lawyers, the administration of their affairs, and seeing to the proper collection of all payments.

If a Jew cannot sell his business, or entrust it to a proxy or wish to give up its personal management, he may stay where he is. The Jews who stay will be none the worse off, for they will be relieved of the competition of those who leave, and will no longer hear the Anti-Semitic cry: "Don't buy from Jews!"

If the emigrating business proprietor wishes to carry on his old business in the new country, he can make his arrangements for it from the very commencement. An example will best illustrate my meaning. The film X carries on a large business in dry goods. The head of the firm wishes to emigrate. He begins by setting up a branch establishment in his future place of residence, and sending out samples of his stock. The first poor settlers will be his first customers; these will be followed by emigrants of a higher class, who require superior goods. X then sends out newer goods, and eventually ships his newest. The branch establishment begins to pay while the principal one is still in existence, so that X ends by having two paying business-houses. He sells his original business or hands it over to his Christian representative to manage, and goes off to take charge of the new one.

Another and greater example: Y and Son are large coal-traders, with mines and factories of their own. How is so huge and complex a property to be liquidated' The mines and everything connected with them might, in the first place, be bought up by the State, in which they are situated. In the second place, the Jewish Company might take them over, paying for them partly in land, partly in cash. A third method might be the conversion of "Y and Son" into a limited company. A fourth method might be the continued working of the business under the original proprietors, who would return at intervals to inspect their property, as foreigners, and as such, under the protection of law in every civilized State. All these suggestions are carried out daily. A fifth and excellent method, and one which might be particularly profitable, I shall merely indicate, because the existing examples of its working are at present few, however ready the modern consciousness may be to adopt them. Y and Son might sell their enterprise to the collective body of their employees, who would form a cooperative society, with Limited liability, and might perhaps pay the requisite sum with the help of the State Treasury, which does not charge high interest.

The employees would then gradually pay off the loan, which either the Government or the Jewish Company, or even Y and Son, would have advanced to them.

The Jewish Company will be prepared to conduct the transfer of the smallest affairs equally with the largest. And whilst the Jews quietly emigrate and establish their new homes, the Company acts as the great controlling body, which organizes the departure, takes charge of deserted possessions, guarantees the proper conduct of the movement with its own visible and tangible property, and provides permanent security for those who have already settled.


Chapter 3, continued ->



Translated from the German by Sylvie D'Avigdor
This edition published in 1946 by the American Zionist Emergency Council