É 1 § 8 H 1 The, ChvrcP) an J So c i qI CVdev A D L 8 0 M M > I \ THE CHURCH and SOCIAL ORDER V A STATEMENT OF THE ARCHBISHOPS AND BISHOPS OF THE ADMINISTRATIVE BOARD OF THE NATIONAL CATHOLIC WELFARE CONFERENCE THE CHURCH AND SOCIAL ORDER A Statement of the Archbishops and Bishops of the Administrative Board of the National Catholic Welfare Conference (With Questions for Discussion Clubs) Published in U. S. A. V - By OUR SUNDAY VISITOR PRESS Huntington, Indiana February 15, 1940 «QgJÉŜB THE CHURCH AND SOCIAL ORDER INTRODUCTION With sublime pathos Pope Pius XII in his first encyclical letter pleads with the people of the world to turn from the destructive ways of hatred and conflict to the healing ways of charity and peace. He reminds a forgetful world of the universality of divine love; he reconsecrates the whole human fam- ily to the Sacred Heart of the Divine Redeemer; and, summoning men to return to Christ, he re- echoes the entreaty raised so often by his predecess- ors: "Behold your King." (Jno. XIX, 14) To re-enthrone Christ in the minds and hearts of men; to re-establish His kingship in human soci- ety; to impregnate the laws and institutions, the aspirations and final purposes of all nations with His spirit, is the supreme hope and purpose of Our Holy Father. "Perhaps—God grant it—one may hope," with Pope Pius XII, "that this hour of direct need may bring a change of outlook and. senti- ment to those many who, till now, have walked with blind faith along the path of popular mod- ern errors unconscious of the treacherous and insecure ground on which they trod. Perhaps the many who have not grasped the importance of the educational and pastoral mission of the Church will now understand better her warn- ings, scouted in the false security of the past. No defense of Christianity could be more effec- tive than the present traits. From the immense vortex of error and anti-Christian movements there has come forth a crop of such poignant, disasters as to constitute a condemnation sur- 6 THE CHURCH AND SOCIAL ORDER < passing in its conclusiveness any merely theo- retical refutation." (1> With all our hearts we thank him for his guid- ance and with such strength as we possess we emu- late his example. We reaffirm the primacy of Our Lord Jesus Christ, "Who is the image of the invisi- ble God, the first-born of every creature: For in Him were all things created in heaven and on earth, visible and invisible . . . And He is before all, and by Him all things consist . . . Because in Him it hath well pleased the Father, that all fullness should dwell." (Col. I, 15-19.) The peace which all right-minded men so earn- estly desire, must be based upon a comprehensive program of restoring Christ to His true and proper place in human society. We must bring God back into government; we must bring (God back inito education; we must bring God back into economic life; we must bring God back indeed into all life, private and public, individual and social; The t r u t h of God, the law of God, the justice, mercy and char- ity of God, must, by conscious effort and willing submission be made to permeate all our social inter- course and all our public relations. In the midst of human society, God has set His Church as "the pillar and ground of t r u t h . " To the Church Christ has given the divine mission to teach all things whatsoever He has commanded. The divine mandate permits no curtailment of the law no matter how diverse the circumstances and con- ditions under which man lives and works, nor any compromise with the full measure of its application to human conduct. The obligation comprehends the <1> Summi Pontificatila, pp. 11, 12, N.C.W.C. edition—1939. 7 THE CHURCH AND SOCIAL ORDER < actions of man in his private and public life as an individual and as a member of human society. Man is not an isolated individual living in a social vacuum, but a social being destined to live and work out his salvation in association with his fellow beings. He is a member of a community and he has, in consequence, duties of commutative jus- tice and duties of social justice and duties of char- ity which emerge from this relationship. On no other foundation can man build a right social order or create that good society which is desired so ard- ently by the great mass of mankind. Inasmuch as the right and duty of the Church to teach the fullness of the moral law and in par- ticular "to deal authoritatively with social and economic problems," (p. 14), <2) are challenged in some quarters or are too frequently misunderstood in others, we judge it wise .and opportune to re- affirm the jurisdiction of the Church as the teacher of the entire moral law and more particularly as it applies to man's economic and social conduct in business, industry and trade. To make our pro- nouncements authentic and to interpret truly the mind of the Church, we follow closely the teachings of our late lamented Pontiff, Pope Pius XI. First, let it be made clear that the Church is concerned only with the moral aspects of trade and industry and dpes not enter the field of business, in matters that are purely material or technical. The Church is not concerned with the accuracy of econ- omic surveys or the resultant data, nor with the problems of scientific organization, production, cost- , 2 l All citations unless otherwise mentioned are from the Encyclical "Forty Years After" (Quadragesimo Anne) of Pope Pius XI, N.C.W.C. edition, 1931. 8 THE CHURCH AND SOCIAL ORDER < accounting, transportation, marketing and a mul- titude of similar activities. To pass judgment on their aptitude and merits is a technical problem proper to economic science and business adminis- tration. For such the Church has neither the equip- ment nor the authorization. We frankly declare that it would be unwise on her part to discuss their operation except insofar as a moral interest might be involved (p. 14). The Church does not prescribe any particular form of technical economic organization of society just as she does not prescribe any particular politi- cal organization of the state. (3) Pius XI makes this clear in his encyclical letter Quadragesimo Anno where he states: "It is hardly necessary to note that What Leo XIII taught concerning the form of political government can, in due measure, be applied also to vocational groups. Here, too, men may choose whatever form they please, providing that both justice and the common good be taken into account" (p. 28). From the Sacred Scripture we learn that "the earth is the Lord's and the fullness thereof." (Ps. XXIII, 1.) No absolute or unlimited owneïship therefore can be claimed by man as if he were free to follow his own selfish interests without regard to the necessity of others. The moral law teaches that he has indeed a right to privatp property but, as Pope Leo XIII points out, "the earth, even though divided among private owners, ceases not thereby to administer to the needs of all." (4) Man is truly the steward of his possessions in <3> Cf. Divini Redemptoris, N.C.W.C. edition, p. 24, par. 32. ( 4 ) "On the Condition of Labor" (Rerum Novarum), Paulist Press, p. 7. 9 THE CHURCH A N D SOCIAL ORDER < the .sight of God and has therefore definite respon- sibilities both of justice and charity toward his fel- low man with respect to the use he makes of his property. . From divine revelation we learn that physical labor was decreed by God even a f t e r the Fall of man for the good of body and soul (p. 42). The laborer is worthy of his hire. If, however, human labor is treated as a mere commodity to be bought and sold in the open market at the lowest price, then it ceases to fulfill its proper function in society. What a sad perversion of the wholesome plan of Divine Providence that "dead matter leaves the factory ennobled and transformed, where men are corrupted and .degraded" (p. 43). From divine revelation we learn moreover t h a t each human being has an infinitely precious per- sonality. Pius XI in his encyclical Divini Redemp- toris sets forth this truth with clarity, forc% and beauty: . "Man has a spiritual and immortal soul. He is a person marvelously endowed by~ his Creato?. with gifts of body and mind. He is a true 'microcosm,' as the ancients said, a world in miniature, with a value f a r surpassing that of the vast inanimate cosmos. God alone is his last end, in this life and the next. By sancti- fying grace he is raised to the dignity of a son of God, and incorporated into the Kingdom of God in the Mystical Body of Christ. In conse- quence he has been endowed by God with many and varied prerogatives; the right to life, to bodily integrity, to the necessary means of existence; the right to tend towards his ulti- mate goal in the path marked out for him by God; the right of association and the right to possess and use property" (p. 19). 10 THE CHURCH A N D SOCIAL ORDER < Man cannot in consequence be treated as a mere chattel but rather with dignity and respect as a child of God. His labor is not a thing to be asham- ed of, but an honorable calling, whereby he achieves a necessary livelihood and fulfills the divine plan of an earthly economy. Because these are moral principles and spiritual truths, jurisdiction in expounding their full scope and obligation belongs to the Church which Christ established as the teacher of men in this world. We in our capacity as shepherds of the flock of Christ cannot be unmindful of our duties in these matters. "Take heed to yourselves," says the Apostle, "and to the whole flock, wherein the Holy Ghost hath placed you bishops, to rule the Church of God" (Acts XX, 28). It is an unfortunate fact that large numbers of working men have become alienated from relig- ion. This is true even of Catholics in some of the oldei» countries. In the words of the Supreme Pon- tiff it has become the great scandal of the modern world. No matter how we explain the defection, the fact remains that Christian t r u t h and principles of conduct have become greatly obscured "so that we are confronted with a world which in large measure has almost fallen back into paganism" (p. 46). To bring back those who have suffered loss of faith and with it the loss even of earthly hope and charity, it is necessary to re-establish the sound principles of Christian social teaching. To make our progress sure and effective we must recruit and train leaders from within the various ranks of soci- ety who know the mentality and aspirations of their -cspective classes and who with kindly f r a t e r n a l 11 THE CHURCH A N D SOCIAL ORDER < charity will be able to win both their minds and their hearts. "Undoubtedly," as Pius XI says, "the first and immediate apostles of the working men must themselves be working men, while the apostles of the industrial and commercial world should them- selves be employers and merchants. I t is your chief duty, Venerable Brethren, and that of your clergy, to seek diligently, to select prudently and train fit- tingly these lay apostles, amongst working men and amongst employers" (p. 46). In existing circumstances the obligation of the Church is manifest. Who can deny the close rela- tionship between economic injustice and a long train of evils, physical, social and moral? Unfair wages due to a greed lor excessive profits and in- security due to false and immoral economic prin- ciples lead directly to under-nourishment, bad hous- ing, inadequate clothing, and indirectly to irregular family relations, child delinquency and crime. Ex- cessively long hours of work in some industrial areas and in some industrial processes create dangers to life and limb, impair the health of working men, and impoverish whole families through infection, disease and premature death. Because human be- ings and not animated machines toil in industry, therefore the Church cannot abdicate her right and duty to speak out in defense of the rights of human personality nor fail to declare uncompromisingly the moral obligations of industrial and economic life. Today most controversy concerns itself with these questions: (1) Ownership, (2) Property and Labor, (3) Security, (4) Wages, (5) Establishment of Social Order. We shall here present the Catholic doctrine regulating these matters and in doing so we shall follow the exposition given by our late 12 THE CHURCH A N D SOCIAL ORDER < chief pastor of souls, Pope Pius XI, in his celebrated encyclicals. Discussion Aids For what does Pope Pius XII plead in his first Encyclical? What is his supreme hope? What is necessary f o r the restoration of peace? What mission has Christ given to His Church? What does this mission demand? What duties has man as a social being? On what foundation must a right social order be built? Why do the Bishops at this time reaffirm the right of the Church to deal with social and economic matters ? To what extent does the Church concern itself with these matters? O o e s she prescribe any particular form of technical organization of eco- nomic society or any particular political organiza- tion of the State? Can man claim absolute ownership ? What binds man to place limitations on his use of private property? Who decreed physical labor? When? What does Pope Pius XII say about man's person- ality? Why may he not be treated as mere chattel? What did Pius XI call the great scandal of the modern world? What must be done to bring back those who have suffered loss of Faith? Who must be the immediate apostles of the working men? •With what subjects does most controversy con- cern itself today? Whom will the Bishops follow in their treatment of their subject in this pastoral? I. OWNERSHIP The Church has always defended the right to own private property and also to bequeath and to 13 THE CHURCH A N D SOCIAL ORDER < inherit it. We have vindicated this right even to the point of being falsely accused of favoring the rich against the poor. The Church teaches that t h e right to own property is based on the natural law of which God Himself is the author. By the law of nature man must provide for himself and his family and he can fully discharge this obligation only if there exists an established system of private ownership (p. 16). It is essential to remember that ownership has a two-fold aspect, the one affecting the individual, the other affecting society. To deny the individual character and aspect of ownership leads to some form of socialism or collective ownership; to deny the social character or aspect of ownership leads to selfish individualism or that form of exaggerated liberalism which repudiates duties and ends in com- plete irresponsibility to other persons and to the common good. The two great dangers which society faces in the present state of economic organization are first, the concentration of ownership and control of wealth and secondly, its anonymous character which results from some of the existing business and cor- poration law, whereby responsibility toward society is greatly impaired if not completely ignored. The civil authority, in view of these dangers, must so regulate the responsibility of property that thè bur- den of providing for the common good be equitably distributed. I t must furthermore establish such conditions through legal enactment and administra- tive policy t h a t wealth itself can be distributed so each individual member of society may surely and justly come into possession of the material goods necessary f o r his own livelihood. I t is not however 14 THE CHURCH A N D SOCIAL ORDER < the government alone which has this responsibility, as will become clear from the f u r t h e r considerations to be noted. Pius XI states: " I t follows from the two-fold character of ownership, which We have termed individual and social, that men must take into account in this matter not only their own advantage but also the common good. To define in detail these duties, when the need occurs and when the nat- ural law does not do so, is the function of the government. Provided that the natural and divine law be observed, the public authority, in view of the common good, may specify more accurately what is licit and what is illicit for property owners in the use /of their possess- ions" (p. 17). In the application of the principles of social justice, an important instrument, therefore, is gov- ernmental authority. As Pius XI asserts, the civil authority has the obligation to adjust "ownership to meet the needs of the public good," and by so do- ing "it acts not as an enemy, but as the friend of private owners" (p. 17). Discussion Aids What has been an unfortunate result of the Church's consistent defense of the right to own private property and to bequeath and inherit it? On what is this right based? Whatsis the two-fold as- pect of ownership ? What happens when the individ- ual and social aspect of ownership are denied ? What are the two great dangers which society faces to- day? What is the duty of the State in the face of these dangers? 15 THE CHURCH A N D SOCIAL ORDER < II. PROPERTY AND LABOR Manifestly if every man worked either on his own land or with his own tools and in his own busi- ness, there would be no labor problems. Self-em- ployment however is not the characteristic of our present economic organization. With the advent of machine industry and especially with the develop- ment of mass production there has developed an intensification of the individualistic spirit, creating new problems f o r labor. I t is freely admitted that modern industry re- quires considerable concentration of capital, but it is not admitted that concentration of ownership and control is consequently necessary or beneficial to the common good. > The concentration of capital, how- ever, with mass employment does create a new and more impersonal relationship between capital and labor. The problem is one of providing equitably f o r the distribution of income between those who supply capital and those who supply labor. In too many instances an undue portion of the income has been claimed by those who have owner- ship or control of capital, whilst those on the other hand who have only their labor to invest have been forced to accept working conditions which are un- reasonable and wages which are unfair. This con- dition arises from the fact t h a t labor policies have been dictated by false principles in the interests of the owners or capitalists. Secondly, it arises from the fact that labor frequently has had no voice in the regulation or the adjustment of these problems. Labor can have no effective voice as, long as it is unorganized. To protect its rights it must be f r e e to bargain collectively through its own chosen rep- 16 THE CHURCH A N D SOCIAL ORDER < resentatives. If labor when unorganized is dis- satisfied, the only alternative is to cease work and thus undergo the great hardships which follow un- employment. To remedy the situation, it is necessary to adopt right principles for the distribution of the income of industry. These" principles must be both economi- cally sound and morally just. The principle that labor should be ̂ compensated to such extent only that it remains physically efficient and capable of reproducing itself in new generations of working men, is a vicious principle, devoid of all respect f o r human dignity and opposed to all sense of social responsibility. It is true that this principle was never widely held in theory, but it has been f r e - quently applied in practice. One such application is found in the policy t h a t labor should be compen- sated solely according to the principle of supply and demand. This reduces labor to the position of a commodity and makes the workingman accept the fluctuating price in a labor market irrespective of the needs of himself and family. Neither present sufficiency of income nor security for the f u t u r e play a part in determining his wage standard ac- cording to this immoral theory and practice. Such theory or practice is anti-social and anti-Christian, f o r it denies both social responsibility and the claims of Christian ethics and in their place substitutes th.e principles of selfishness and force. New developments in the organization of labor under the great impetus which has been given by recent legislation and governmental policy, make it opportune to point out that the principle of force and domination is equally wrong if exercised by labor under certain conditions by means of a 17 THE CHURCH A N D SOCIAL ORDER < monopoly-control. To defend in principle or to adopt in practice the theory that the net result be- longs to labor and that capital shall receive only sufficient to replace itself is an invasion of the rights of property. This is only a more subtle form of the contention that all means of production should be socialized. Clearly all such proposals disregard the contribution which the owner of property makes in the process of production and are palpably un- just. I t is not however the excessive claims of labor on the income from industry which constitute the most immediate problem in labor relations today, but rather the abuse of power which not infrequent- ly results in violence, riot and disorder. Employers at times abuse their economic power by discrimina- ing unfairly against unions, by establishing lock- outs, by importing from outside the community strike breakers who a r e furnished with arms, and by provoking in other ways ill feeling which pre- cipitates violent disorder. Employees on their part allow themselves at times to be misled by men of evil principles so as to engage in the criminal use of violence both against persons and property. Leo XIII in his Encyclical Rerum Novarum, spares neither group in his denunciation of such immoral conduct. He calls upon the public authority to pro- tect and defend vigorously the rights of all, fore- stalling preferably the rise of disorder by eliminat- ing the economic abuse from which this disorder springs (pp. 12-24). . False principles generate false policies and as a consequence there grows and develops a false economic system which sins both against the true interests of human society .and against the true 18 THE CHURCH A N D SOCIAL ORDER < principles of Christian morality. Pius XI insists that owners and employers may not hire working people exclusively f o r their own benefit and profit, nor divert all economic life to their own will, but must guard social justice, the human dignity of labor, the social nature of economic life and the interests of the common good (p. 32). The far-reaching need of social justice and its demands are seen from the following words of the Sovereign Pontiff Pope Pius X t : i "Now, not every kind of distribution of wealth and property amongst men is such that it can at all, and still less can adequately, attain the end intended by God. Wealth, therefore, which is constantly being augmented by social and economic progress, must be so distributed amongst the various individuals and classes of society that the common good of all, of which Leo XIII spoke, be thereby promoted. In other words, the good of the whole community must be safeguarded" (p. 20). Discussion Aids What is the characteristic of our present economic organization? What has created new problems for labor? What has given rise to an un- equal division of the profits of industry between capital and labor ? Why has labor not had an effect- ive voice in the adjustment of the problems of capi- tal and labor? What do the Bishops call "a vicious principle"? What constitutes the most immediate problem in labor relations today? How do employers sometimes abuse their economic power? How do employees sometimes offend? How does Pope Pius XI say wealth must be distributed? 19 THE CHURCH A N D SOCIAL ORDER < III. SECURITY Our present economic order rests upon the sanc- tity of private property. Private property however is not well distributed at present among the mem- bers of human society. Whilst it is-dangerous to exaggerate the disproportion between those who possess adequate property and those who constitute the proletariat or the propertyless, nevertheless, it is certainly within the bounds of t r u t h to state that the existing situation constitutes a grave social evil. Private property in the judgment of many thought- ful men tends to become less- and less tto?. character- istic note of our present society. If the majority of our citizens possess insufficient private property to be independent of a wage income for even a short period of time, then there is grave danger to the entire social fabric. Social stability rests upon this basis of individual ownership of property. There should be more of it and not less of it, if our exist- ing economic system is to remain secure. The lack of sufficient private property leads to various forms of insecurity. This insecurity not only leads to the creation of a strong social tension expressing itself in social disorder, but is also con- trary to the prescriptions of Christian morality. There can be no question but t h a t in our country we possess adequate resources both in respect to raw materials, technical or scientific skill, and mechani- cal equipment sufficient to provide both a high standard of living and also comprehensive security for all classes of society. Workingmen should be made secure against unemployment, sickness, acci- dent, old age and death. The first line of defense against these hazards should be the possession of 20 THE CHURCH A N D SOCIAL ORDER < sufficient private proiperty to provide reasonable security. Industry therefore should provide not merely a living wage f o r the moment but also a sav- ing wage f o r the f u t u r e against sickness, old age, death, and unemployment. Individual industries alone, however, cannot in each single case achieve this objective without invoking the principle of soc- ial insurance. Some form of government subsidy granted by the entire citizenship through legislative provision seems to be a necessary part of such a program. We cannot overlook the fact that an important factor making for insecurity is the "immense power and economic domination which is concentrated in the hands of a few and that those few are frequent- ly not the owners, but only the trustees and direct- ors of invested funds, who administer them at their good pleasure" (p. 32). Pope Pijis XI then singles out one group in an especial manner as exercising this domination and despotic power. "This power," he states, "becomes particu- larly irresistible when exercised by those who, because they hold and control money, are able also to govern credit and determine its allot- ment, f o r that reason supplying, so to speak, the life-blood to the entire economic body, and grasping as it "were in their hands the very soul of production, so that no one dare breathe against their will" (pp. 32-33). That there exists a serious problem from the standpoint of security for working men is clearly manifest from the present state of unemployment and the present huge demands on government f o r public relief against dire poverty. Very significant- ly our present Holy Father Pius XII writes in his 21 THE CHURCH AND SOCIAL ORDER < letter addressed specifically to the American Hier- archy : "May it also be brought about that each and every able-bodied man may receive an equal opportunity for work in order to earn the daily bread for himself and his own. We deeply la- ment the lot of those—and their number in the United States is large indeed—who though ro- bust, capable and willing, cannot have the work for which they are anxiously searching. May the wisdom of the governing powers, a f a r - seeing generosity on the part of the employers, together with the speedy re-establishment of more favorable conditions, effect the realiza- tion of these reasonable hopes to the advantage of all." <5> We do not wish to imply that individual em- ployers as* a class are willfully responsible f o r this present state of insecurity but we do claim that a system which tolerates such insecurity is both eco- nomically unsound and also inconsistent with the demands of social justice and social charity. Secur- i t y of the workingmen therefore as against unem- ployment, old age, sickness, accident and death, must be frankly accepted as a social responsibility of industry jointly with society. The distribution of the burden justly between the various groups must be determined first through mutual council and hon- est agreement between the employers and the em- ployees, and secondly through the regulation of gov- ernment action in its sovereign capacity as promoter of the common good. Not all responsibility rests upon government. In truth a large measure of responsibility rests upon- the proper collaboration of employers and em- (5) "To. the Church in the United States" (Sertum Laeti- t i a e ) , N.C.W.C. edition, p. 18, 1939. 22 THE CHURCH A N D SOCIAL ORDER < ployees or of property owners and wage earners. The economic system itself and the principles which guide its executives must help to achieve security by establishing a f a i r • distribution of income be- tween capital and labor. It must strive to establish an equilibrium between f a r m income and city in- come. If the rate of wages (not the annual income) of the industrial worker in the city is out of balance with the rate of returns of the f a r m e r in the country, then there is bound to be unemployment and insecur- ity. Hence the duty of both groups is to work f o r a just balance between themselves instead of en- couraging selfishness and greed which defeat the interest of both, and violate the principles of mor- ality. The same can be said of the various classes of industrial labor. Here also there must be a balance between various groups both organized and unor- ganized. Unless this be true the economic system cannot function smoothly and there will inevitably be unemployment, because the one class of work- ingmen cannot buy the high priced products of the other class of workingmen with their limited income. If skilled laborers, who, through rigid organization, have a monopoly-control of their craft, raise their rate of hourly wages too high, they do not gain their advantage exclusively from the wealthy but from the poor also, in terms of excessive prices. Higher wages as. a rule should come out of excessive profits and not out of increased prices. Heartening indeed'are the beginnings toward the greater security of the people that have already been made through legislative enactment and public policy. The immediate benefits of these laws to working people may be small and some modifications 23 THE CHURCH A N D SOCIAL ORDER < perhaps desirable, but it is highly gratifying that the principle upon which they rest has become a part of our national policy. Discussion Aids At the present time is private property well distributed among the members of human society? Who are the proletariat? Upon what does social stability rest? What kind of wage should industry supply? When is some form of government subsidy necessary? What does Pope Pius XI say about the concentration of wealth and the control of industry in the hands of a few? What does Pope Pius XII say about unemployment in America? How must the burden of security for workers be distributed among industry? What is bound to happen if the rate of wages of industrial workers in the city is out of balance with the rate of returns .of the f a r m e r in the country? From what should higher wages come, excessive profit or increased prices? IV. WAGES In view of the fact that at present many indus- trial' workers and also f a r m laborers do not possess sufficient private property to-provide either a pres- ent livelihood or security for the future, the problem of wages assumes outstanding importance. At the outset it is necessary to state that the wage con- tract itself is not unjust nor in itself vicious as some theorists have falsely contended (p. 22)1 I t is of course true that a contract between employers and employees would serve the purpose of individual and social welfare more effectively if it were modified by some form of partnership which would permit a graduated share in the ownership and profits of 24 THE CHURCH A N D SOCIAL ORDER < business and also some voice in its management. It is riot intended that labor should assume responsi- bility f o r the direction of business, beyond its own competency or legitimate interest; nor has labor a right to demand dominating control over the dis- tribution of profits. To set up such claims would amount to an infringement on the rights of prop- erty. Labor has however certain definite rights which have been frequently ignored or . largely dis- counted. The first claim of labor, which takes priority over any claim of the owners to profits, respects the right to a living wage. By the term living wage we understand a wage sufficient not merely for the dec- ent support of the working man himself but also of his family. A wage so low that it must be supple- mented by the wage of wife and mother or by the children of the family before it can provide adequate food, clothing and shelter together with essential spiritual and cultural needs cannot be regarded as a living wage. Furthermore a living wage means sufficient in- come to meet not merely the present necessities of life but those of unemployment, sickness, death and old age as well. In other words, a saving wage con- stitutes an essential part of the definition of a liv- ing wage. In the effort to establish a criterion or stand- ard of measurement of wages, it is necessary to con- sider not only the needs of the workingman but also the state of the business or industry in which he labors. Pope Pius XI states clearly that "it is un- just to demand wages so high that an employer can- not pay them without ruin, and without consequent distress amongst the working people themselves" 25 THE CHURCH A N D SOCIAL ORDER < (p. 24). Bad management, want of enterprise, or out-of-date methods do not constitute a just reason for reducing the wages of workingmen. I t still re- mains true that a living wage constitutes the first charge on industry. If a business is prevented by unfair competition from paying a living wage, and if such competition reduces prices to such a level that decent and just wages cannot be paid, then those responsible are guilty of wrongdoing and sin grievously against moral principles as well as against the common good. The remedy lies first in the adequate organization of both employers and employees in their own proper associations and in their joint action; secondly, in adequate regulation and supervision by the state through proper legisla- tive enactment. No criterion or standard of wages however can be determined independently of price. A scale of wages too low, no less than a scale.excessively high causes unemployment (p. 25). Likewise a scale of prices too low no less than a scale of prices too high leads to unemployment. Both create hardship and throw the economic system out of its proper equili- brium causing unemployment f o r the community and hardship even for the individual who is em- ployed, for he must pay too high a price in view of his wages or he receives too low a wage in view of prices. What is needed is a reasonable relationship and a harmonious proportion. Pope Pius XI states: "Where this harmonious proportion is kept man's various economic activities combine and unite into one single organism and become members of a common body, lending each other mutual help and service. For then only will the economic and social organism be soundly estab- lished and attain its end; when it secures f o r 26 THE CHURCH A N D SOCIAL ORDER < all "and each those goods which the wealth and resources of nature, technical achievement, and the social organization of economic affairs can give. These goods should be sufficient to supply all needs and an honest livelihood, and to uplift men to that high level of prosperity and culture which, provided it be used with -prudence, is not only no hindrance but is of singular help to virtue" (p. 25). Wages are an essential element in the deter- mination of prices. In the final analysis the cost of raw materials cannot be segregated from wage costs, for the production-cost of raw materials pre- supposes & multiplicity of wage costs as a compon- ent element. If wages continuously change then there must be a continuous change in prices, unless it is assumed that all wage changes will affect only the profits of owners. As a matter of fact they do not. The economic organization might function just as easily on one -price level as another, but it cannot function well if the price level is frequently chang- ing. Rapid or frequent fluctuations disturb the harmonious proportions between income and prices not only for owners and employers but also for the workingmen themselves. This consideration is no argupient against a necessary increase of wages whenever and wher- ever the wages are inadequate to provide a decent living. But it is an argument in favor of attaining a relative degree of stability in the price level as soon as commutative justice and social justice per- mit. A cogent reason for aspiring to such a con- dition of stability is the higher interest of the fam- ily as against the single or unmarried workingman or employee. The single man benefits more from a wage increase than does the family man if the end 27 THE CHURCH A N D SOCIAL ORDER < result in an increase in prices. The family man is penalized in multiple fashion with every increase in prices. Stability in the price level therefore and even a reduction in prices as a secular trend is de- sirable a3 one means of distributing our national income more widely and more effectively f o r the common good. Such a long range policy will sup- plement the benefits of an increased family wage in view of increased family burdens as recommend- ed by Pius XI, We do not wish to imply that a universal in- crease of wages will automatically solve our prob- lems of unemployment and idle factories. Some wage increases come not out of the profits of the wealthy but out of the increased prices for the poor. The first requirement therefore is that thè lowest paid workingman be the first to receive an increase of .wages and simultaneously that prices be not rais- ed but excessive profits be reduced. The ultimate aim therefore must be a reasonable relationship be- tween the prices obtained f o r - t h e products of the various economic groups (p. 25). Because economic society has not followed the moral laws of justice and charity, the principles of interdependence have been violated and we have precipitated unemployment with all its consequent hardships and misery. To withhold just and reas- onable wages from the workingman has injured him directly and immediately, but it has also injured the common good and the interests of the very owners òf property. Their factories, their commercial es- tablishments and their equipment have frequently stood idle as a result. Unless workingmen as a class have sufficient income to purchase their share of the good which our economic system is capable 28 THE CHURCH A N D SOCIAL ORDER < of producing-, the markets will' automatically be closed to the sale of goods, and idle factories and unemployment are the disastrous result. Discussion Aids Why does the problem of wages now assume outstanding importance? Is the wage contract itself unjust? How should such a contract be modified? Has labor a right to demand dominating control over the distribution of profits? Why? What is the first claim of labor? What is a living wage? How does the demand for excessively high wages i n j u r e the workers themselves? What is the first charge on industry? What is the remedy for those industries which cannot pay a living wage? What leads to unemployment? When only will the eco- nomic and social organism be soundly established and attain its goal? What relationship exists be- tween wages and prices? How would stability of prices benefit the family man? Who should be the first to receive an increase in wages ? How has the withholding of a just wage for workers injured the common good and the interest of the very owners of property. V. ESTABLISHMENT OF SOCIAL ORDER It would be unreasonable to expect that an eco- nomic system which has been predicated upon false principles and which has been operative over many decades could be reorganized suddenly or with the easy gesture of hasty legislation and neW adminis- trative policy. We face a problem which requires f o r its solution intellectual vision, moral integrity, and persevering effort. Many leaders both in the ,1eld of management and in the field of labor must 29 THE CHURCH A N D SOCIAL ORDER < first be convinced that economic laws and moral laws are in harmony and not in conflict with one another. No one section of human society can be grievously injured without that injury reacting harmfully in the final analysis upon all other section? of society. The remedy f o r our problem is not so simple as some would have us think. The solution is to be found in clear thinking and in a right conscience. Relying upon God's Providence we dare not be pessi- mistic but at the same time we frankly recognize that a full restoration to a Christian social order is a matter of steady growth and not a sudden tran- sition. There are two attitudes which represent ex- treme positions respecting our economic and social order. The one attitude is espoused by those who re- ject any and every kind of economic planning or organization. They constitute the group of • ex- treme individualists or the so-called school of eco- nomic liberalism. They want no interference what- soever with the individual either from the govern- ment or from the social pressure of group organiza- tions. They will tolerate no restrictions upon in- dividual initiative or personal 'enterprise. They are liberal only to the extent that they wish to be liberated from all social responsibility. They call it f r e e enterprise but the freedom is for those who possess great resources and dominating strength rather than for the weak or those who depend sim- ply on their own labor for their well-being. They oppose all efforts to establish collective bargaining by organized labor and they resent the action of government in enacting laws which make such collective bargaining obligatory. If there is to be any social planning, they will do it themselves 30 THE CHURCH A N D SOCIAL ORDER < without the collaboration of labor, consumers or the government. They want the government to be res- tricted to the function of a policeman or umpire in enforcing private contracts but not to be entrusted with the responsibility of promoting justice and the common good. The second group reject totally this attitude of the individualist and rush to the opposite extreme. These latter desire to socialize all resources or estab- lish a átate collectively. Either all property, as in pure Communism, or at least all productive prop- erty as in Socialism, should be owned in their the- ory by the community or by the state. The state or the community thereupon will engage through its bureaus and agencies in developing an elaborate system of national economic planning. The hope, impractical as that method may be, is to make pro- vision for the needs of all citizens so that there will be no surplus and no deficiency. This system would ignore human nature and human rights as flagrant- ly as the afore-mentioned group of individualists. In fact, experience indicates that where this system has been tried human beings are victimized in a manner and to an extent even more disastrous. Per- secution is the logical and inevitable result of such economic dictatorship. Between these two extremes there is a "via media" completely consistent with Christian moral- ity and with sound economic principles. It is mani- festly impossible to expect good economic order if wages, prices, working conditions and the public good are left to chance or to the haphazard methods of so-called free enterprise. "Free competition, however," says Pope Pius XI, "though within cer- tain limits is just and productive of good results. 31 THE CHURCH A N D SOCIAL ORDER < but it cannot be the ruling principle of the economic world." Economic supremacy, he continues, can still less assume this function of a true and effective guiding principle, "for this is a headstrong and vehement power, which, if it is to prove beneficial to mankind, needs to be curbed strongly and ruled with prudence" (p. 29). The true remedy will be found according to the mind of Pope Pius XI in accomplishing two re- forms in our social order. In the first place there must be re-established some form of guild or voca- tional groups which will bind men together in soci- ety according to their respective occupations, thus creating a moral unity. Secondly there must be a reform of morals and a profound renewal of the Christian spirit which must precede the social re- construction. The t'ocial organism has been dismembered and broken up into fragments each seeking its own sel- fish interests instead of the common gQod of all. Until the organic nature of society is again recog- nized and re-established through vocational groups or guilds, either one of two things must happen. The state must assume all responsibility, that is, be- come an absolute economic dictatorship or else the individual remains helpless, defenseless and com- pletely overpowered by those who enjoy economic supremacy. Not only must the moral principles of justice and charity be recognized and accepted by members of society, but the social and economic system itself must be so organized that these principles can free- ly function and become truly operative. Hence the need of a guild or corporative system which will establish sound prosperity and which respect» the 32 THE CHURCH AND SOCIAL ORDER < proper hierarchic structure of society. (6) Not only must employers and employees be organized singly and jointly but their organizations must be impreg- nated with Christian moral and social principles or else their work will be sterile or even productive of new disorders. When we speak of the establishment of a right social order, we understand thereby a reform in the concept and organization of the state respecting its responsibility f o r public welfare; secondly, a re- form in other fundamental social institutions; and thirdly, and quite emphatically, a reform or correc- tion of morals. "When we fpeak of the reform of the social order," says Pius XI, "it is principally the State we have in mind." The state cannot do all things nor may we hope for salvation from its inter- vention alone. In fact, the state has been encum- bered with all the burdens once borne by associa- tions now extinct. The distinctive function of the state in consequence has become submerged and its authority overwhelmed by an infinity of affairs and duties (p. 26). The state, however, cannot be relegated to the position of a mere policeman or umpire. I t has the responsibility of providing for the common good. On the other hand, it may not and should not become totalitarian in attempting to fulfill all social func- tions in the way of economic planning and direc- tion. It should leave to the smaller vocational groups the settlement of business of lesser import- ance. It will then be f r e e effectively to accomplish its real function of "directing, watching, stimulat- («» Diviiri Redemptoris, p. 21, par. 32, N.C.W.C. edition. 33 THE CHURCH A N D SOCIAL ORDER < ing and restraining, as circumstances suggest or necessity demands" (p. 26). The primary duty of the state and of all good citizens is to abolish conflict between classes with divergent interests. This may at first sight appear to be purely negative. There is however a positive responsibility to foster and promote harmony be- tween the various ranks of society and that by speci- fic means. "The aim of social legislation," says Pope Pius XI, "must therefore be the reestablish- ment of vocational groups" (p. 27). The remedy for the class conflict which makes the labor market an arena where the two armies are engaged in combat, is to be found precisely in the reintegration of the social body by means of voca- tional groups, "which bind men together not accord- ing to the position they occupy in the labor market, but according to the diverse functions which they exercise in society" (p. 27). The chief qualifications of these vocational groups or guilds, as noted by Pius XI, aré that they are autonomous, embrace whole industries and professions, are federated with other constituent groups, possess the right of free organization, assembly and vote, and that they should dedicate themselves to the common good and with governmental protection and assistance func- tion in the establishment of justice and the general welfare in economic life. The state itself in the manner described above, and the existing free organizations of economic life should prepare the way for the ideal type of voca- tional groups or that sane corporative economic sys- tem of which the Pope so frequently speaks, which he so ardently desired to see realized and toward 34 THE CHURCH A N D SOCIAL ORDER < which rightly conducted activities of these organiza- tions can lead. (p. 28). The second reform is of equal importance; it is first in the logical order but simultaneous in the- order of time. "Nowadays," states Pius X I , ' " t h e conditions of social and economic life are such that vast multitudes of men can only with great diffi- culty pay attention to t h a t one thing necessary, namely, their eternal salvation" (p. 40). There grows in consequence a disorderly affection of the soul, having its source i n original sin but aggravated by the present unhappy social conditions. This leads to an unquenchable thirst for riches and temporal possessions, and prompted by this greed for gain there develops a fever of speculation unrestrained by any scruple in committing the grave injustices against others. The civil authority which might have mitigated the evil failed lamentably in the en- forcement of the moral law and the spirit of Ration- alism already in the ascendant accentuated the evil by giving f r e e rein to an economic science devoid of moral principles (p. 42). The remedy in the spiritual order is a f r a n k and sincere return to the teaching of the Gospel. God must once more be recognized as the supreme end of all created activity; and all created goods as the instruments under God for the attainment of our final destiny. "Seek ye first the kingdom of God and his justice and all things else will be added unto you" (Math. VI, 33). Unfortunately there has been a tendency among too many to dissociate the virtue of justice from the virtue of charity, with the result that life has been made even more selfish and heartless. Charity is no substitute for justice, but it cannot be ignored or 35 THE CHURCH AND SOCIAL ORDER < derided without failing utterly to comprehend its meaning and its potent influence in regulating and sublimating our social relations and responsibilities. We need justice without doubt or equivocation, but we also need charity if we are to put our lives in harmony with God's plan and promote that spirit of benevolence which will lift the burdens not only from the backs but also from the souls of men. We understand well that a right social order with a lasting and comprehensive peace cannot be achieved solely through improvement in the econo- mic sphere. The present Holy Father states this clearly in his first encyclical letter: "For true though it is that the evils from which mankind suffers today come in part from economic instability and from the struggle of interests regarding a more equal distribution of the goods which God has given man as a means of sustenance and progress, it is not less true that their root is deeper and more intrinsic, belonging to the sphere of religious belief and moral convictions which have been perverted by the progressive alienation of the people from that unity of doctrine, faith, custom and morals which once was promoted by the tireless and beneficent work of the Church. If it is to have any effect, the re-education of mankind must be, above all things, spiritual and religious. Hence, it must proceed from Christ as from its indispensable foundation; must be actuated by ' justice and crowned by charity." (7) Our economic life then must be reorganized not on the disintegrating principles of individualism but on the constructive principle of social and moral unity among the members of human society. In conformity with Christian principles, economic (7) Sumnti Pontificatus, pp. 33, 34, N.C.W.C. jedition, 1939. 38 THE CHURCH AND SOCIAL ORDER < power must be subordinated to human welfare, both individual and social; social incoherence and class conflict must be replaced by corporate unity and organic function; ruthless competition must give way to just and reasonable state regulations; sordid selfishness must be superseded by social justice and charity. Then only can there be a true and rational social order; then only can we eliminate the twin evils of insufficiency and insecurity, and establish the divine plan of a brotherhood of man under the fatherhood of God. "In the recognition of the royal preroga- tives of Christ and in the return of individuals and of society to the law of His truth and of His love lies the only way to salvation." <8) Well nigh fifty years have passed since the far-sighted Pope Leo XIII stated the Catholic principles of social justice for the modern world. His successors have re-affirmed and elaborated upon them. On numerous occasions, individually and col- lectively, the Bishops of the United States have not only stressed their importance but have formulated practical programs for their effective application to conditions in this country. In giving renewed emphasis to these prin- ciples, we urge our people again to give them earn- est study, so that they may come to know and love the way of justice; and to strengthen themselves spiritually, through prayer and the Sacraments, that they may ever follow it. So doing, by God's grace they will, as a leaven in society, fulfill their appoint- ed role in the establishment of the Kingdom of God among men. <8> Ibidem, p. 10. 37 THE CHURCH A N D SOCIAL ORDER < Discussion Aids What is the first step necessary in the estab- lishment of social order? What two attitudes represent extreme positions respecting our eco- nomic and social order? Which of these opposes all efforts to make collective bargaining obligatory? What does the second group want to do? May f r e e competition be thp ruling principle of the economic world? What two reforms are necessary to correct the abuses of competition? What will necessarily happen if these reforms are not instituted? What do we understand when we speak of the establish- ment of a right social order? Which of these three is the most important? What is the responsibility of the State? With what should it concern itself? What is the primary duty of the State? What does Pope Pius XI say must be the aim of social legisla- tion? How do vocational groups bind men together? What is the spiritual remedy for our social ills? Is charity a substitute for justice? Summarize in your own words the statement of Pope Pius XII on the evils of our day and the manner in which they can be remedied. Wherein lies the only way to salva- tion? How can we fulfill our appointed role in the establishment of the kingdom of God among men? 38 THE CHURCH AND SOCIAL ORDER < Given at Washington, D.C., Ash Wednesday, February 7, 1940. The Administrative Board And Assistant Bishops of the National Catholic Welfare Conference Samuel A. Stritch, Archbishop of Chicago, Chairman. ^ . John Gregory Murray, Archbishop of St. Paul. Joseph F. Rummel, Archbishop of New Orleans. John Mark Gannon, Bishop of Erie. Hugh C. Boyle, Bishop of Pittsburgh. Francis C. Kelley, Bishop of Oklahoma City- Tulsa. John B. Peterson, Bishop of Manchester. Edwin V. O'Hara, Bishop of Kansas City. John A. Duffy, Bishop of Buffalo. Edward F. Hoban, Bishop of Rockford. Emmet M. Walsh, Bishop of Charleston. Karl J. Alter, Bishop of Toledo. Charles Hubert LeBlond, Bishop of St. Joseph. Francis P. Keough, Bishop of Providence. Walter A. Foery, Bishop of Syracuse. Bartholomew J. Eustace, Bishop of Camden. (Copyright, 1940, National Catholic Welfare Conference).