This end affects not only the State, but in most cases its inhabitants so profoundly that one may speak of a literal _death of the peoples_, caused by the _capitalistic exploitation of slave labor_. This latter is a social institution inevitably bound to exist in every state founded on piracy and maritime ventures and thus coming to use money as a means of exchange. In the primitive stages of feudalism, whence it was derived, slavery was harmless, as is true in all economic systems based on exchange and use in kind, only to become an ulcerating cancer, utterly destructive of the entire life of the State as soon as it is exploited by the “capitalist” method, i. e., as soon as slave labor is applied, not to be used in a system of a feudal payment in kind, but to supply a market paying in money.
Numberless slaves are brought into the country by piracy, privateering, or by the commercial wars. The wealth of their owners permits them to work the ground more intensively, and the owners of realty within the confines of the city limits draw ever increasing revenues from their possessions, and become more and more greedy of land. The small freeholder in the country, overburdened by the taxes and military service of wars waged in the interests of this great merchant class, sinks into debt, becomes a slave for debt, or migrates into the city as a pauper. But even so there is no hope for him, since the removal of the peasants has damaged the craftsmen and small traders, for the peasants were wont to purchase in the city, while the great estates, constantly increasing by the removal of the peasantry, supply their own needs by their own slave products. The evil attacks other parts of the body politic. The remaining trades are gradually usurped by masters exploiting slave labor, which is cheaper than free labor. The middle class thus goes to pieces; and a pauper, good-for-nothing mob, a genuine “bob-tail proletariat” comes into being, which, by reason of the democratic constitution achieved in the interim, is the sovereign of the commonwealth. The full course, political as well as military, is then a mere question of time. It may take place without a foreign invasion; which, however, usually sets in, when by reason of the physical breakdown caused by the immense depopulation, by the consumption of the people in its literal sense, the final stage is attained. This is the end of all these states. Within the scope of this treatise we can not dilate on this phase.