"'The first comprises the decades from the foundation of the republic to about the end of the first third of the nineteenth century--say, up to the thirties or forties. This was the period during which the power of capital in private hands had not as yet shown itself seriously aggressive. The moneyed class was small and the accumulations of capital petty. The vastness of the natural resources of the virgin country defied as yet the lust of greed. The ample lands to be had for the taking guaranteed independence to all at the price of labor. With this resource no man needed to call another master. This may be considered the idyllic period of the republic, the time when De Tocqueville saw and admired it, though not without prescience of the doom that awaited it. The seed of death was in the state in the principle of private capitalism, and was sure in time to grow and ripen, but as yet the conditions were not favorable to its development. All seemed to go well, and it is not strange that the American people indulged in the hope that their republic had indeed solved the social question. "'From about 1830 or 1840, speaking of course in a general way as to date, we consider the republic to have entered on its second phase--namely, that in which the growth and concentration of capital began to be rapid. The moneyed class now grew powerful, and began to reach out and absorb the natural resources of the country and to organize for its profit the labor of the people. In a word, the growth of the plutocracy became vigorous. The event which gave the great impulse to this movement, and fixed the time of the transition from the first to the second period in the history of the nation, was of course the general application of steam to commerce and industry. The transition may indeed be said to have begun somewhat earlier, with the introduction of the factory system. Of course, if neither steam nor the inventions which made the factory system possible had ever been introduced, it would have been merely a question of a longer time before the capitalist class, proceeding in this case by landlordism and usury, would have reduced the masses to vassalage, and overthrown democracy even as in the ancient republics, but the great inventions amazingly accelerated the plutocratic conquest. For the first time in history the capitalist in the subjugation of his fellows had machinery for his ally, and a most potent one it was. This was the mighty factor which, by multiplying the power of capital and relatively dwarfing the importance of the workingman, accounts for the extraordinary rapidity with which, during the second and third periods the conquest of the republic by the plutocracy was carried out.