Direct Legislation by the Citizenship through the Initiative and Referendum Part 3

In surveying the simple political machinery of Switzerland, the inquirer, remembering the fate of so many republics, may be led to ask as to the danger of its overthrow by the Swiss army. The reply is that, here, again, so far as may be seen, the nation has wisely planned safeguards. To show how, and as the Swiss army differs widely from all others in its organization, some particulars regarding it are here pertinent.

The more important features of the Swiss military system, established in 1874, are as follows: There is no Commander-in-chief in time of peace.

There is no aristocracy of officers. Pensions are fixed by law. There is no subst.i.tute system. Every citizen not disabled is liable either to military duty or to duties essential in time of war, such as service in the postal department, the hospitals, or the prisons. Citizens entirely disabled and unfit for the ranks or semi-military service are taxed to a certain per centage of their property or income. No canton is allowed to maintain more than three hundred men under arms without federal authority.

Though there is no standing army, every man in the country between the ages of seventeen and fifty is enrolled and subject annually either to drill or inspection. On January 1, 1891, the active army, comprising all unexempt citizens between twenty and thirty-two years, contained 126,444 officers and men; the first reserve, thirty-three to forty-four years, 80,795; the second reserve, all others, 268,715; total, 475,955. The Confederation can place in the field in less than a week more than 200,000 men, armed, uniformed, drilled, and every man in his place.

On attaining his twentieth year, every Swiss youth is summoned before a board of physicians and military officers for physical and mental examination. Those adjudged unfit for service are exempted--temporarily if the infirmity may pa.s.s away, for life if it be permanent. The tax on exempted men is $1.20 plus thirty cents per year for $200 of their wealth or $20 of their income, until the age of thirty-two years, and half these sums until the age of forty-four. On being enrolled in his canton, the soldier is allowed to return home. He takes with him his arms and accoutrements, and thenceforth is responsible for them. He is ever ready for service at short call. Intrusting the soldiery with their outfit reduces the number of armories, thus cutting down public expenditures and preventing loss through capture in case of sudden invasion by an enemy.

In the Swiss army are eight divisions of the active force and eight of the reserve, adjoining cantons uniting to form a division. Each summer one division is called out for the grand manoeuvres, all being brought out once in the course of eight years.

In case of war a General is named by the Federal a.s.sembly. At the head of the army in time of peace is a staff, composed of three colonels, sixteen lieutenant colonels and majors, and thirty-five captains.

The cost of maintaining the army is small, on an average $3,500,000 a year. Officers and soldiers alike receive pay only while in service. If wounded or taken ill on duty, a man in the ranks may draw up to $240 a year pension while suffering disability. Lesser sums may be drawn by the family of a soldier who loses his life in the service.

At Thoune, near Berne, is the federal military academy. It is open to any Swiss youth who can support himself while there. Not even the President of the Confederation may in time of peace propose any man for a commission who has not studied at the Thoune academy. A place as commissioned officer is not sought for as a fat office nor as a ready stepping-stone to social position. As a rule only such youths study at Thoune as are inclined to the profession of arms. Promotion is according to both merit and seniority. Officers up to the rank of major are commissioned by the cantons, the higher grades by the Confederation.

In Switzerland, then, the military leader appears only when needed, in war; he cannot for years afterward be rewarded by the presidency; pensions cannot be made perquisites of party; the army, _i.e._ the whole effective force of the nation, will support, and not attempt to subvert, the republic.

_The True Social Contract._

The individual enters into social life in Switzerland with the const.i.tutional guarantee that he shall be independent in all things excepting wherein he has inextricable common interests with his fellows.

Each neighborhood aims, as far as possible, to govern itself, so subdividing its functions that even in these no interference with the individual shall occur that may be avoided. Adjoining neighborhoods next form a district and as such control certain common interests. Then a greater group, of several districts, unite in the canton. Finally takes place the federation of all the cantons. At each of these necessary steps in organizing society, the avowed intention of the ma.s.ses concerned is that the primary rights of the individual shall be preserved. Says the "Westminster Review": "The essential characteristic of the federal government is that each of the states which combine to form a union retains in its own hands, in its individual capacity, the management of its own affairs, while authority over matters common to all is exercised by the states in their collective and corporate capacity." And what is thus true of Confederation with respect to the independence of the canton is equally true of canton with respect to the commune, and of the commune with respect to the individual. No departure from home rule, no privileged individuals or corporations, no special legislation, no courts with powers above the people's will, no legal discriminations whatever--such their aim, and in general their successful aim, the Swiss lead all other nations in leaving to the individual his original sovereignty. Wherever this is not the fact, wherever purpose fails fulfillment, the cause lies in long-standing complications which as yet have not yielded to the newer democratic methods. On the side of official organization, one historical abuse after another has been attacked, resulting in the simple, smooth-running, necessary local and national stewardships described. On the side of economic social organization, a concomitant of the political system, the progress in Switzerland has been remarkable. As is to be seen in the following chapter, in the management of natural monopolies the democratic Swiss, beyond any other people, have attained justice, and consequently have distributed much of their increasing wealth with an approach to equity; while in the system of communal lands practiced in the Landsgemeinde cantons is found an example to land reformers throughout the world.

THE COMMON WEALTH OF SWITZERLAND.

Unless producers may exercise equal right of access to land, the first material for all production, they stand unequal before the law; and if one man, through legal privilege given to another, is deprived of any part of the product of his labor, justice does not reign. The economic question, then, under any government, relates to legal privilege--to monopoly, either of the land or its products.

With the non-existence of the exclusive enjoyment of monopolies by some men--monopolies in the land, in money-issuing, in common public works--each producer would retain his entire product excepting his taxes. This end secured, there would remain no politico-economic problem excepting that of taxation.

Of recent years the Swiss have had notable success in preventing from falling into private hands certain monopolies that in other countries take from the many to enrich a few. Continuing to act on the principles observed, they must in time establish not only equal rights in the land but the full economic as well as political sovereignty of the individual.

_Land and Climate._

Glance at the theatre of the labor of this people. Switzerland, with about 16,000 square miles, equals in area one-third of New York. Of its territory, 30 per cent--waterbeds, glaciers, and sterile mountains--is unproductive. Forests cover 18 per cent. Thus but half the country is good for crops or pasture. The various alt.i.tudes, in which the climate ranges from that of Virginia to that of Labrador, are divided by agriculturists into three zones. The lower zone, including all lands below a level of 2,500 feet above the sea, touches, at Lake Maggiore, in the Italian canton of Ticino, its lowest point, 643 feet above the sea.

In this zone are cultivated wheat, barley, and other grains, large crops of fruit, and the vine, the latter an abundant source of profit. The second zone, within which lies the larger part of the country, includes the lower mountain ranges. Its alt.i.tudes are from 2,500 to 5,000 feet, its chief growth great forests of beech, larch, and pine. Above this rises the Alpine zone, upon the steep slopes of which are rich pastures, the highest touching 10,000 feet, though they commonly reach but 8,000, where vegetation becomes spa.r.s.e and snow and glaciers begin. In these mountains, a million and a half cattle, horses, sheep, and goats are fed annually. In all, Switzerland is not fertile, but rocky, mountainous, and much of it the greater part of the year snow-covered.

Whatever the individual qualities of the Swiss, their political arrangements have had a large influence in promoting the national well-being. This becomes evident with investigation. Observe how they have placed under public control monopolies that in other countries breed millionaires:--

_Railroads._

One bureau of the Post-Office department exercises federal supervision over the railroads, a second manages the mail and express services, and a third those of the telegraph and telephone.

Of railroads, there are nearly 2,000 miles. Their construction and operation have been left to private enterprise, but from the first the Confederation has a.s.serted a control over them that has stopped short only of management. Hence there are no duplicated lines, no discriminations in rates, no cities at the mercy of railroad corporations, no industries favored by railroad managers and none destroyed. The government prescribes the location of a proposed line, the time within which it must be built, the maximum tariffs for freight and pa.s.sengers, the minimum number of trains to be run, and the conditions of purchase in case the State at any time should decide to a.s.sume possession. Provision is made that when railway earnings exceed a certain ratio to capital invested, the surplus shall be subjected to a proportionately increased tax. Engineers of the Post-Office department superintend the construction and repair of the railroads, and post-office inspectors examine and pa.s.s upon the time-tables, tariffs, agreements, and methods of the companies. Hence falsification of reports is prevented, stock watering and exchange gambling are hampered, and "wrecking," as practiced in the United States, is unknown.

Owing to tunnels, cuts, and bridges, the construction of the Swiss railway system has been costly; Mulhall's statistics give Switzerland a higher ratio of railway capital to population than any other country in Europe. Yet the service is cheap, pa.s.senger tariffs being considerably less than in France and Great Britain, and, about the same as in Germany, within a shade as low as the lowest in Europe.

Differing from the narrow compartment railway carriages of other European countries, the pa.s.senger cars of Switzerland are generally built on the American plan, so that the traveler is enabled to view the scenery ahead, behind, and on both sides. For circular tours, the companies make a reduction of 25 per cent on the regular fare. At the larger stations are interpreters who speak English. Unlike the service in other Continental countries, third cla.s.s cars are attached to all trains, even the fastest. On the whole, despite the highest railroad investment per head in Europe, Switzerland has the best of railway service at the lowest of rates, the result of centralized State control coupled with free industry under the limitations of that control. In the ripest judgment of the nation up to the present, this system yields better results than any other: by a referendary vote taken in December, 1891, the people refused to change it for State ownership of railroads.

_Mails, the Telegraph, the Telephone, and Highways._

The Swiss postal service is a model in completeness, cheapness, and dispatch. Switzerland has 800 post-offices and 2,000 depots where stamps are sold and letters and packages received. Postal cards cost 1 cent; to foreign countries, 2 cents, and with return flap, 4. For half-ounce letters, within a circuit of six miles, the cost is 1 cent; for letters for all Switzerland, up to half a pound, 2 cents; for printed matter, one ounce, two-fifths of a cent; to half a pound, 1 cent; one pound, 2 cents; for samples of goods, to half a pound, 1 cent; one pound, 2 cents.

There are 1,350 telegraph offices open to the public. A dispatch for any point in Switzerland costs 6 cents for the stamp and 1 cent for every two words.

The Swiss Post-Office department has many surprises in store for the American tourist. Mail delivery everywhere free, even in a rural commune remote from the railroad he may see a postman on his rounds two or three times a day. When money is sent him by postal order, the letter-carrier puts the cash in his hands. If he wishes to send a package by express, the carrier takes the order, which soon brings to him the postal express wagon. A package sent him is delivered in his room. At any post-office he may subscribe for any Swiss publication or for any of a list of several thousand of the world's leading periodicals. When roving in the higher Alps, in regions where the roads are but bridle paths, the tourist may find in the most unpretending hotel a telegraph office. If he follows the wagon roads, he may send his hand baggage ahead by the stage coach and at the end of his day's walk find it at his destination.

There are three hundred stage routes in Switzerland, all operated under the Post-Office department, private posting on regular routes being prohibited. The department owns the coaches; contractors own the horses and other material. From most of the termini, at least two coaches arrive and depart daily. Pa.s.sengers, first and second cla.s.s, are a.s.signed to seats in the order of purchasing tickets. Every pa.s.senger in waiting at a stage office on the departure of a coach must by law be provided with conveyance, several supplementary vehicles often being thus called into employ. A postal coach may be ordered at an hour's notice, even on the mountain routes. Coach fare is 6 cents a mile; in the Alps, 8. Each pa.s.senger is allowed thirty-three pounds of baggage; in the Alps, twenty-two. Return tickets are sold at a reduction of 10 per cent.

The cantonal wagon roads of Switzerland are unequaled by any of the highways in America. They are built by engineers, are solidly made, are macadamized, and are kept in excellent repair. The Alpine post roads are mostly cut in or built out upon the steep mountain sides. Not infrequently, they are tunneled through the ma.s.sive rocky ribs of great peaks. Yet their gradient is so easy that the average tourist walks twenty-five miles over them in a short day. The engineering feats on these roads are in many cases notable. On the Simplon route a wide mountain stream rushes down over a post-road tunnel, and from within the traveler may see through the gallery-like windows the cataract pouring close beside him down into the valley. On the route that pa.s.ses the great Rhone glacier, the road ascends a high mountain in a zigzag that, as viewed in front from the valley below, looks like a colossal corkscrew. This road is as well kept as the better turnpikes of New York, teams moving at a fast walk in ascending and at a trot in descending, though the region is barren and uninhabitable, and wintry nine months in the year. These two examples, however, give but a faint idea of the vast number of similar works. The federal treasury appropriates to several of the Alpine cantons, in addition to the sums so expended by the local administrations, from $16,000 to $40,000 a year for the maintenance of their post roads.

With lower postage than any other country, the net earnings of the Swiss postal system for 1889 were $560,000. This, however, is but a fraction of the real gain to the nation from this source. Without their roads, railroads, stage lines, and mail facilities, their hotels, numbering more than one thousand and as a rule excellently managed, could not be maintained for the summer rush of foreign tourists, worth to the country many million dollars a year. The finest Alpine scenery is by no means confined to Swiss boundaries, but within these lines the comforts of travel far surpa.s.s those in the neighboring mountainous countries. In Savoy, Lombardy, and the Austrian Tyrol, the traveler must be prepared to put up with comparatively antiquated methods and primitive accommodations.

Yet, previous to 1849, each Swiss canton had its own postal arrangements, some cantons farming out their systems either to other cantons or to individuals. In each canton the service, managed irrespective of federal needs, was costly, and Swiss postal systems, as compared with those of France and Germany, were notoriously behindhand.

_Banking._

While the Confederation coins the metallic money current in the country, it is forbidden by the const.i.tution to monopolize the issue of notes or guarantee the circulation of any bank. For the past ten years, however, it has controlled the circulation of the banks, the amount of their reserve fund, and the publication of their reports.[H] The latter may be called for at the discretion of the executive council, in fact even daily.

[Footnote H: A vote, October 18, 1891, made note-issuing a federal monopoly.]

There are thirty-five banks of issue doing business under cantonal law.

Of these, eighteen, known as cantonal banks, either are managed or have their notes guaranteed by the respective cantons. Thus, while banking and money-issuing are free, the cantonal banks insure a requisite note circulation, minimizing the rate of interest and reducing its fluctuations. The setting up of cantonal banks, in order to withdraw privileges from licensed banks, was one of the public questions agitated by social reformers and decided in several of the cantons by direct legislation.

_Taxes._

The framework of this little volume does not admit so much as an outline of the various methods of taxation practiced in Switzerland. As in all countries, they are complex. But certain significant results of direct legislation are to be pointed out. In all the cantons there is a strong tendency to raise revenue from direct, as opposed to indirect, taxes, and from progressive taxation according to fortune. The following, from an editorial in the "Christian Union," February 12, 1891, so justly and briefly puts the facts that I prefer printing it rather than words of my own, which might lie under suspicion of being tinged with the views of a radical: "With the democratic revolution of 1830 the people demanded that direct taxation should be introduced, and since the greater revolution of 1848 they have been steadily replacing the indirect taxes upon necessities by direct taxes upon wealth. In Zurich, for example--where in the first part of this century there were no direct taxes--in 1832 indirect taxation supplied four-fifths of the local revenue; to-day it supplies but one-seventeenth. The canton raises thirty-two francs per capita by direct taxation where it raises but two by indirect taxation. This change has accompanied the transformation of Switzerland from a nominal to a real democracy. By the use of direct taxation, where every man knows just how much he pays, and by the use of the Referendum, where the sense of justice of the entire public is expressed as to how tax burdens should be distributed, Switzerland has developed a system by which the division of society into the harmfully rich and wretchedly poor has been checked, if not prevented. In the most advanced cantons, as has been brought out by Professor Cohn in the 'Political Science Quarterly,' the taxes, both on incomes and on property, are progressive. In each case a certain minimum is exempted.

In the case of incomes, the progression is such that the largest incomes pay a rate five times as heavy as the very moderate ones; while in the case of property, the largest fortunes pay twice as much as the smallest. The tax upon inheritances has been most strongly developed. In the last thirty years it has been increased sixfold. The larger the amount of property, and the more distant the relative to whom it has been bequeathed, the heavier the rate is made. It is sometimes as high as 20 per cent. Speaking upon this point, the New York 'Evening Post'

correspondent says: 'Evidently there are few countries that do so much to discourage the acc.u.mulation of vast fortunes; and, in fact, Switzerland has few paupers and few millionaires.'"

Until 1848, each canton imposed cantonal tariff duties on imported goods, and, as is yet the case in most continental countries, until a few years ago the larger cities imposed local import duties (_octrois_).

But the _octroi_ is now a thing of the past, and save in one respect the cantons have abolished cantonal tariffs. The mining of salt being under federal control, and the retail price regulated by each canton for itself, supervision of imports of salt into each canton becomes necessary.

The "Statesmen's Year Book" (1891) gives the debts of all the cantons of Switzerland as inconsiderable, while the federal debt, in 1890 but eleven million dollars, is less than half the federal a.s.sets in stocks and lands. In summing up at the close of his chapter on "State and Local Finance," Prof. Vincent says: "On the whole, the expenditures of Switzerland are much less than those of neighboring states. This may be ascribed in part to the lighter military burden, in part to the fact that no monarchs and courts must be supported, and further, to the inclinations of the Swiss people for practical rather than ornamental matters." And he might pertinently have added, "and to the fact that the citizens themselves hold the public purse-strings."