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Contemporary Socialism

Contemporary Socialism

John Rae

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This scarce antiquarian book is a facsimile reprint of the original. Due to its age, it may contain imperfections such as marks, notations, marginalia and flawed pages. Because we believe this work is culturally important, we have made it available as part of our commitment for protecting, preserving, and promoting the world's literature in affordable, high quality, modern editions that are true to the original work.

Chapter 1 INTRODUCTORY.

It was a common topic of congratulation at the Exhibition of 1862 that the political atmosphere of Europe was then entirely free from the revolutionary alarms which overclouded the first Exhibition in 1851; but in that very year the old clouds began to gather once more at different quarters of the horizon.

It was in 1862 that Lassalle delivered to a club of working men in Berlin his address on "The Present Epoch of the World, and the Idea of the Working Class," which was published shortly afterwards under the title of "The Working Man's Programme," and which has been called by his friends "The Wittenberg Theses" of the new socialist movement; and it was at the Exhibition itself that those relations were established between the delegates of English and French trade societies which issued eventually in the organization of the International. The double train thus laid has put in motion a propaganda of social revolution more vigorous, widespread, and dangerous than any which has preceded it.

But though the reappearance of socialism was not immediately looked for at the time, it could cause no serious surprise to any one who considered how nearly the socialist theory is allied with some of the ruling ideas of modern times, and how many points of attraction it presents at once to the impatient philanthropy of enthusiasts, to the passions of the multitude, and to the narrow but insistent logic of the numerous class of minds that make little account of the complexity of life. Socialism will probably never keep long away during the present transitional period of society, and there is therefore less interest in the mere fact of its reappearance than in marking the particular form in which, after a prolonged retirement, it has actually returned; for this may perhaps be reasonably taken to be its most vital and enduring type, and consequently that with which we shall mainly have to reckon in the future.

Now the present movement is, before all, political and revolutionary. The philanthropic and experimental forms of socialism, which played a conspicuous r?le before 1848, perished then in the wreck of the Revolution, and have never risen to life again. The old schools have dispersed. Their doctrines, their works, their very hopes have gone. The theories of man's entire dependence on circumstances, of the rehabilitation of the flesh, of the passional attraction, once in everybody's mouth, have sunk into oblivion. The communities of Owenites, St. Simonians, Fourierists, Icarians, which multiplied for a time on both sides of the Atlantic, are extinct. The socialists of the present day have discarded all belief in the possibility of effecting any social regeneration except by means of political authority, and the first object of their endeavours is therefore the conquest of the powers of the State. There are some exceptions, but these are very unimportant. The communistic societies of the United States, for instance, are mostly organizations of eccentric religious sects which have no part or influence in the life of the century. The Colinsian Collectivists, followers of the Belgian socialist Colins, are a mere handful; and the Familistère of Guise in France-a remarkable institution, founded since 1848 by an old disciple of Fourier, though not on Fourier's plan-stands quite alone, and has no imitators. Non-political socialism may accordingly be said to have practically disappeared.

Not only so, but out of the several sorts and varieties of political socialism, only one has revived in any strength, and that is the extremest and most revolutionary. It is the democratic communism of the Young Hegelians, and it scouts the very suggestion of State-help, and will content itself with nothing short of State-transformation. Schemes such as were popular and noisy thirty years ago-schemes, involving indeed organic changes, but organic changes of only a partial character-have gone to their rest. Louis Blanc, for example, was then a name of some power; but, remarkably enough, though Louis Blanc was but the other year buried with great honour, his Organization of Labour seems to be as completely forgotten as the Circulus of Leroux. M. G. de Molinari writes an interesting account of the debates that took place in the working men's clubs of Paris in the year 1868-9-the first year they were granted liberty of meeting after the establishment of the Second Empire-and he states that while Fourier and Cabet were still quoted by old disciples, though without any idea of their systems being of practical moment, Louis Blanc's name was not even mentioned. Proudhon's gospel of a State bank of mutual credit for furnishing labourers with capital, by issuing inconvertible notes without money and without price, has still a sprinkling of faithful believers, who call themselves Mutualists; but they are extremely few, and, as a rule, the socialists of France at the present day, like those of Germany, put their faith in iron rather than paper. What they want is a democracy of labour, to use one of their own phrases-that is, a State in which power and property shall be based on labour; where citizenship shall depend on a labour qualification, instead of a qualification of birth or of property; where there shall be no citizen who enjoys without labouring, and no citizen who labours without enjoying; where every one who is able to work shall have employment, and every one who has wrought shall retain the whole produce of his labour; and where accordingly, as the indispensable prerequisite of the whole scheme, the land of the country and all other instruments of production shall be made the joint property of the community, and the conduct of all industrial operations be placed under the direct administration of the State. Furthermore, all this is contended for as a matter of simple right and justice to the labouring classes, on the ground that the wealth of the nation belongs to the hands that made it; it is contended for as an obligation of the State, because the State is held to be merely the organized will of the people, and the people is the labouring class; and it is contended for as an object of immediate accomplishment-if possible, by ordinary constitutional means; but, if not, by revolution.

This is the form in which socialism has reappeared, and it may be described in three words as Revolutionary Socialist Democracy. The movement is divided into two main branches-socialism proper, or collectivism, as it is sometimes called, and anarchism. There are anarchists who are not socialists, but hold strongly by an individualist constitution of property. They are very few, however, and the great mass of the party known by that name in our day, including the Russian Nihilists, are as ardent believers in the economic socialism of Karl Marx as the Social Democrats of Germany themselves. They diverge from the latter on a question of future government; but the differences between the two are only such as the same movement might be expected to exhibit in passing through different media, personal or national. Modern democrats have been long divided into Centralists and Federalists-the one party seeking to give to the democratic republic they contemplate a strongly centralized form of government, and the other preferring to leave the local communes comparatively independent and sovereign, and free, if they choose, to unite themselves in convenient federations. The federal republic has always been the favourite ideal of the Democrats of Spain and of the Communards of Paris, and there is generally a tendency among Federalists, in their impatience of all central authority, to drop the element of federation out of their ideal altogether, and to advocate the form of opinion known as "anarchy"-that is, the abolition of all superior government. It was very natural that this ancient feud among the democrats should appear in the ranks of socialist democracy, and it was equally natural that the Russian Radicals, hating the autocracy of their country and idealizing its rural communes, should become the chief adherents of the federalist and even the anarchic tradition.

This is the only point of principle that separates anarchism from socialism. In other respects anarchism may be said to be but an extremer phase of socialism. It indulges in more violent methods, and in a more omnivorous spirit of destruction. Its fury takes a wider sweep; it attacks all current beliefs and all existing institutions; it puts its hopes in universal chaos. I shall endeavour in a future chapter to explain, from peculiarities of the national character and culture, why this gospel of chaos should find so much acceptance in Russia; but it is no exclusively Russian product. It was preached with singular coolness, as will be subsequently shown, by some of the young Hegelians of Germany before 1848, and it obtains among the more volatile members of most socialist organizations still. Attacks on religion, patriotism, the family, are very usual accessories of their practical agitations everywhere. As institutions and beliefs are seen to lend strength to each other, teeth set on edge against one are easily brought to gnash at all. A sharp check from the public authority generally brings out to the front this extremer element in German socialism. After the repressive legislation of 1878 the German socialists struck the restriction of proceeding "by legal methods" out of their programme, and the wilder spirits among them would be content with nothing short of a policy of general destruction, and, being expelled from the party, started an organization of their own on thoroughly anarchist lines.

Under these influences, the word socialism has come to contract a new meaning, and is now generally defined in a way that would exclude the very theories it was originally invented to denote. Its political element-its demand on the public power in behalf of the labouring class-is taken to be the pith and essence of the system. Mr. Cairnes, for example, says that the circumstance which distinguishes socialism from all other modes of social speculation is its invocation of the powers of the State, and he finds fault with Mr. Mill for describing himself in his "Autobiography" as a socialist, merely because his ideal of ultimate improvement had more in common with the ideal of socialistic reformers than with the views of those who in contradistinction would be called orthodox. The passage from the "Autobiography" runs as follows:-"While we repudiated with the greatest energy that tyranny of society over the individual which most socialistic systems are supposed to involve, we yet looked forward to a time when society will no longer be divided into the idle and the industrious; when the rule that they who do not work shall not eat will be applied, not to paupers only, but impartially to all; when the division of the produce of labour, instead of depending, as in so great a degree it now does, on the accident of birth, will be made by concert on an acknowledged principle of justice; and when it will no longer either be, or be thought to be, impossible for human beings to exert themselves strenuously in procuring benefits which are not to be exclusively their own, but to be shared with the society they belong to." ("Autobiography," pp. 231-232). On this passage Mr. Cairnes observes:-"If to look forward to such a state of things as an ideal to be striven for is socialism, I at once acknowledge myself a socialist; but it seems to me that the idea which 'socialism' conveys to most minds is not that of any particular form of society to be realized at a future time when the character of human beings and the conditions of human life are widely different from what they now are, but rather certain modes of action, more especially the employment of the powers of the State for the instant accomplishment of ideal schemes, which is the invariable attribute of all projects generally regarded as socialistic. So entirely is this the case that it is common to hear any proposal which is thought to involve an undue extension of the power of the State branded as socialistic, whatever be the object it may seek to accomplish. After all, the question is one of nomenclature merely; but people are so greatly governed by words that I cannot but regret that a philosophy of social life with which I so deeply sympathize should be prejudiced by verbal associations fitted, as it seems to me, only to mislead." ("Leading Principles of Political Economy," p. 316.)

Mr. Cairnes's objection is just; for a reformer's position ought to be determined, not by the distant ideal he may think best, if the conditions were ripe for its realization, but by the policy which he counts to be of present importance under the conditions that exist. He may cherish, as many orthodox economists do, the socialist hope. He may look for a time when comfort and civilization shall be more universally and securely diffused; when heads and hands in the world of labour shall work together in amity; when competition and exclusive private property and self-interest shall be swallowed up in love and common labour. But he knows that the transformation must be gradual, and that the material conditions of it must never be pushed on in advance of the intellectual and moral. And this cuts him off by a whole diameter, from those who are now known as socialists. In every question of the day he will be found in an opposite camp from them. For he makes the ideal what it is and ought to be-the goal of his action; they make it their starting-point, and the peculiarity of the case is that with their view of the situation they cannot make it anything else. For to their mind the struggle they are engaged in is not a struggle for amelioration, but for plain and elementary right. It is not a question of providing greater happiness for the greatest number; it is a question of doing them bare justice, of giving them their own, of protecting them against a disguised but very real expropriation. They declare that, under the present industrial arrangements, the labouring classes are in effect robbed of most of the value of the work of their hands, and of course the suppression of systematic robbery is an immediate obligation of the present. Justice is a basis to start from now, if possible, and not a dream to await hereafter. First let the labouring man have his rights, they cry, and then, and then only, shall you have the way clear for any further parley about his future. It is true that he is not the victim of individual rapacity so much as of the system, and that he cannot get his rights till the system is completely changed; but the system, they argue, can never be completely changed except by the power of the State, and why then not change it at once? Now, it is obvious how, to people who take this view of the matter, there should seem no other alternative but an instant reconstruction of industrial society at the hands of the State. For if it is justice that has to be done, then it appears only natural to conclude that it falls upon the State, as the organ of justice, to do it, and that it cannot do it too soon. The demand for the immediate accomplishment of their scheme by public authority is thus no accidental accessory of it merely, but is really inseparable from the ideas on which the scheme is founded. It is, in fact, so much, if I may use the word, the note of socialism wherever socialism makes itself heard in the world now, that it can only produce confusion to give the name of socialist to persons who hold this note in abhorrence, and virtually desire no more than the gradual triumph of co-operation.

It may be answered that the latter, like the former, aim not at a mere reform of the present industrial system, but at an essential change in its fundamental principles-at an eventual suppression of exclusive property and unrestricted competition-and that it is therefore only proper to classify them with those who seek the like important end, however they may differ from the latter as to the means and seasons of action. This might be right, perhaps, if our only consideration were to furnish a philosophical classification of opinions; but we have to deal with a living and agitating party whose name and work are much canvassed, and there is at any rate great practical inconvenience in extending the current designation of that party so as to include persons who object strongly to its whole immediate work.

The inconvenience has doubled since Mill's time, because socialism has now become a much more definite programme of a much more definite party. Even in the old romantic schools the ruling characteristic of socialism was always its effort to realize some wrong view of distributive justice. It was more than merely an impracticable plan for the extinction of poverty, or the more equable diffusion of wealth, or the correction of excessive inequalities, although that seems to be so prevailing an impression that persons who have what they conceive more feasible proposals to offer for these purposes put them forward under the name of Practicable Socialism. But so far as these purposes go, they are common to almost all schools of social reformers, even the most individualist. If socialism meant only feeling earnestly about those inequalities, or desiring earnestly their redress, or even strongly resenting their inconsistency with an ideal of justice, then Mr. Herbert Spencer is as much a socialist as either Marx or Lassalle. "The fates of the great majority," says he, "have ever been, and doubtless still are, so sad that it is painful to think of them. Unquestionably the existing type of social organization is one which none who care for their kind can contemplate with satisfaction; and unquestionably men's activities accompanying this type are far from being admirable. The strong divisions of rank and the immense inequalities of means are at variance with that ideal of human relations on which the sympathetic imagination likes to dwell; and the average conduct, under the pressure and excitement of social life as at present carried on, is in sundry respects repulsive." ("A Plea for Liberty," p. 4.) Socialists are far from being the only persons whose sense of justice is offended by much in the existing régime, and many very moderate politicians have held that the policy of the law should always favour the diffusion of wealth rather than its concentration; that it should always favour the active business interest rather than the idle interest; that it should always favour the weaker and more unprotected interest rather than the more powerful and the more contumelious. The socialism comes in not with the condemnation of the existing order of things, but with the policy recommended for its correction. There is no socialism in recognising the plain fact that the gifts of fortune, whether riches or talents, are not distributed in the world according to merit. There is no socialism in declaring that the rich, by reason of their riches, have responsibilities towards the poor; or that the poor, by reason of their poverty, have claims upon the rich. Nor is there any socialism in holding that the State has responsibilities towards the poor, and that the law ought, when necessary, to assert the reasonable claims of poverty, or enforce the reasonable duties and obligations of wealth. All that merely says that justice and humanity ought to govern in economic affairs, as they ought to govern in all other affairs of life; and this is an axiomatic position which nobody in the world denies. Only, axiomatic though it is, it seems to dawn on many minds like a revelation late in life, and they feel they are no longer as other men, and that they must henceforth call themselves socialists. This awakening to the injustice or inhumanity of things is not socialism, though socialism may often proceed out of it. Socialism is always some scheme for the removal of one injustice by the infliction of a greater-some scheme which, by mistaking the rights and wrongs of the actual situation, or the natural operation of its own provisions, or any other cause, would leave things more inequitable and more offensive to a sound sense of justice than it found them. The rich idler, for example, is always a great offence to the socialist, because, according to the socialist sense of justice, no man ought to be rich without working for his riches; and many other people will possibly agree with the socialist in that. But then the socialist proposes to abolish the rich idler by a scheme which would breed the poor idler in overwhelming abundance, and for the sake of equalizing poverty and wealth, would really equalize indolence and industry-at once a more fatal and a more offensive form of injustice than that which it was designed to redress. Socialists find fault with the present order of things because the many workers support the few idlers; but most of the old socialist communities of France and America failed because of the opposite and greater injustice, that the few workers found themselves supporting the many idlers, and the consequence was a more harrowing sense of unfairness and a more universal impoverishment than prevailed under the old system. The rich idler who merely lives on what he has inherited may not belong to an ideal state of society; but the poor idler, who shirks and dawdles and malingers, because an indulgent community relieves him of the necessity of harder exertion, is equally unideal, and he is much more hurtful in the reality.

But the socialists, in their mistaken ideas of justice, do not stop at the rich idler. The rich idler is, in their view, a robber; but the rich worker is a greater robber still. It is characteristic of socialist thought to hold the accumulations of the rich to be in some sort of way unjustly acquired by spoiling the poor. The poor are always represented as the disinherited; their property is declared to have been taken from them perforce by bad laws and bad economic arrangements and delivered without lien into the hands of the capitalists. This view lived and moved in the old socialism, but it has been worked into a reasoned and professedly scientific argument as a basis and justification for the new. The old socialism usually exclaimed against the justice of interest, rent, property, and all forms of labourless income; but the new socialism pretends to prove the charge by economic principles. It alleges that all these forms of income are so many different forms of plundering the working classes, who are the real producers of wealth, and it sets up a claim on behalf of those classes to the whole value of the things they produce without any deductions for rent, interest, or profit-the right, as they call it, of the labourer to the whole produce of his labour. Now this is a very distinct and definite claim of right and justice, and the whole final object of the socialist organizations of the present day is to get it realized, and realized at once, as claims of right and justice ought, and must, by the powers of the State. I shall have better opportunities at a later part of this work of proving how absolutely unfounded and unjust is this claim; but I mention it here merely to show that the essence of modern socialism is more and more unmistakably revealing itself as an effort to realize some false ideal of social or distributive justice. This is the deepest and most ruling feature of socialism, and it really necessitated the advance of the movement from the philanthropic to the political stage. The Owenites were content with the idea of a voluntary equality of wealth; but that is now dismissed as the mere children's dream, for popular rights are things to be enforced by law, and questions of justice are for the State. The political character of the movement has only brought forward into stronger relief the distorted ideal of justice which gave it being; and it has therefore become much more confusing than it formerly was for one to call himself a socialist merely because he dreams of better things to come, or because he would like to extinguish poverty, or to diffuse property, or to extend the principle of progressive taxation, or promote co-operation or profit-sharing, or any other just or useful measures of practical social reform. That is shown very well by a simple little tidemark. In the old days it was still possible, though it never was a happy choice, for Maurice and the promoters of the new co-operation movement to assume the designation of Christian Socialists; but although Schultze-Delitzsch was working on the same lines with even greater éclat at the time when the present socialistic movement began in Germany, he was left so far behind that he was thought the great anti-socialist, and the people to whom it was now considered appropriate to transfer the name of socialists were a set of university professors and others who advocated a more extended use of the powers of the State for the solution of the social question and the satisfaction of working-class claims.

The Socialists of the Chair and the Christian Socialists of Germany contemplate nothing beyond correctives and palliatives of existing evils; but then they ask the State to administer them. They ask the State to inspect factories, or to legalize trades unions, or to organize working-class insurance, or to fix fair wages. Their requests may be wise or foolish, but none of them, nor all of them together, would either subvert or transform the existing industrial system; and those who propound them are called socialists merely because they make it part of the State's business to deal with social questions, or perhaps more particularly because they make it the State's business to deal with social questions in the interest of the working class. This idea of socialism seems largely to govern the current employment of the term. We often hear any fresh extension of the functions of the State condemned as socialistic even when the extension is not supposed to be made in the interests of the working class, or to be conducive to them. The purchase of the telegraphs was socialistic; the proposal to purchase the railways is socialistic; a national system of education is socialistic; and an ecclesiastical establishment, if it were now brought forward as a new suggestion, would be pronounced socialistic too. Since, in a socialistic community, all power is assigned to the State, any measure which now increases the power of the State gets easily represented as an approach to socialism, especially in the want-and it is one of our chief wants at present-of a rational and discriminating theory of the proper limits and sphere of public authority.

But in the prevailing use of the word, there is generally the idea that the intervention of authority to which it is applied is undertaken to promote the well-being of the less fortunate classes of society. Since socialism seeks to construct what may be called a working class State, where the material welfare of each shall be the great object of the organization of all, it is common to represent as socialistic any proposal that asks the State to do something for the material well-being of the working class, and to describe any group of such proposals, or any theory that favours them, by the name of socialism. The so-called State-socialism of Prince Bismarck, for example, is only, as he has himself declared, a following-out of the traditions of the House of Hohenzollern, the princes of that dynasty having always counted it one of their first duties as rulers to exercise a special protection and solicitude over the poorer classes of their subjects. The old ideas of feudal protection and paternal government have charms for many minds that deplore the democratic spirit of modern society. In Germany they have been maintained by the feudal classes, the court, and the clergy; their presence in the general intellectual atmosphere there has probably facilitated the diffusion of socialistic views; and they have certainly led to the curious phenomenon of a Conservative socialism, in which the most obstinately Conservative interests in the country go to meet the Social Democrats half way, and promise to do everything to get them better wages if they will but come to church again and pray for the Kaiser. The days of feudal protection and paternal government are gone; as idealized by Carlyle, they perhaps never existed; at any rate, in an age of equality they are no longer possible, but their modern counterparts are precisely the ideas of social protection and fraternal government which find their home among socialists. On the strength of this analogy, Prince Bismarck and the German Emperor are sometimes spoken of as socialists, because they believe, like the latter, that the State should exercise a general or even a particular providence over the industrial classes. But socialism is more than such a belief. It is not only a theory of the State's action, but a theory of the State's action founded on a theory of the labourer's right. It is at bottom, as I have said, a mistaken demand for social justice. It tells us that an enlargement of social justice was made when it was declared that every man shall be free-or, in other words, that every man shall possess completely his own powers of labour; and it claims that a new enlargement of social justice shall be made now, to declare that every man shall possess the whole produce of his labour. Now those who are known as Conservative Socialists, in patronizing the working people, do not dream of countenancing any such claim, or even of admitting in the least that there is anything positively unjust in the present industrial system. None of them would go further than to say that the economic position of the labourer is insufficient to satisfy his legitimate aspirations in a civilized community; few of them would go so far. It is therefore highly confusing to class them among socialists.

M. Limousin, again, speaks of a "minimum of socialism." He would call no man a socialist who does not hold this minimum, and he would call every man a socialist who does hold it. And the minimum of socialism, in his opinion, is this, that the State owes a special duty of protection to labourers because they are poor, and that this duty consists in securing to them a more equitable part in the product of general labour. The latter clause might have been better expressed in less general terms, but that may pass. The definition recognises at any rate that the paternal or the fraternal theory of government does not of itself constitute socialism, and that this must be combined with the demand for a new distribution of wealth, on supposed grounds of justice or equity, before we have even the minimum of socialism. But it would have been more correct if it had recognised that the demand for a better distribution must be made not merely on supposed, but on erroneous grounds of justice or equity. If the proposed distribution is really just and equitable, nothing can surely be more proper than to ask the State to do its best to realize it and any practicable intervention for that purpose is only a matter of the ordinary expansion of the law. What is law, what is right, but a protection of the weak? and all legal reform is a transition from a less equitable to a more equitable system of arrangements. The equitable requirements of the poor are the natural concern of the State on the narrowest theory of its functions, and M. Limousin's definition would really include all rational social reformers under the name of socialist.

If we are in this way to stretch the word socialism first to the one side, till it takes in J. S. Mill and Maurice and the co-operators, who repudiate authority and State help, and then on the other side, till it takes in Prince Bismarck, and our own aristocratic Conservative Young England Party, and all social reformers who want the State to do its ordinary duty of supplying the working classes with better securities for the essentials of all humane living, how can there be any rational and intelligible use of the word at all? Mill holds a more or less socialistic idea of what a just society would be; Bismarck holds a more or less socialistic view of the functions of the State; but neither of these ideas separately make up the minimum of socialism; and it would therefore be misleading to call either of them by that name, while to call both by it would be hopeless confusion, since the one politician holds exactly what the other rejects, and no more. But, after all, it is of less importance to define socialism in the abstract than to describe the actual concrete socialism that has organization and life, especially as the name is only transferred in common speech to all these varying shades of opinion, because they are thought to resemble that concrete socialism in one feature or another.

Having now ascertained the general nature of the contemporary socialistic movement, we shall be in a better position to judge of its bearings and importance. We have seen that the only form of socialism which has come to life again since 1848 is the political and revolutionary phase of Social Democracy. Now, this was also the original form in which socialism first appeared in modern Europe at the time of the earlier Revolution of 1789. The tradition it represents is consequently one of apparently vigorous vitality. It has kept its place in European opinion for a hundred years, it seems to have grown with the growth of the democratic spirit, and it has in our own day broken out simultaneously in most of the countries of the Continent, and in some of them with remarkable energy. A movement like this, which seems to have taken a continuous and extensive hold of the popular mind, and which moreover has a consciousness of right, a passion for social justice, however mistaken, at the heart of it, cannot be treated lightly as a political force; but at the same time its consequence is apt to be greatly overrated both by the hopes of sanguine adherents and by the apprehensions of opponents. Socialists are incessantly telling us that their system is the last word of the Revolution, that the current which broke loose over Europe in 1789 is setting, as it could not help setting, in their direction, and that it can only find its final level of repose in a democratic communism. Conservative Cassandras tell us the same thing, for the Extreme Right takes the same view as the Extreme Left does of the logical tendency of measures. They feel things about them moving everywhere towards equality, they feel themselves helpless to resist the movement, and they are sure they shall waken one morning in a social revolution. Stahl, for example, thought democracy necessarily conducted to socialism, and that wherever democracy entered, socialism was already at the door. A few words will therefore be still necessary towards explaining, first, the historical origin of modern socialism; second, the relations of socialism to democracy, and, finally, the extent and character of the spread of the present movement.

Respecting the first of these three points, modern socialism was generated out of the notions about property and the State which appeared towards the close of last century in the course of the speculations then in vogue on the origin and objects of civil society, and which were proclaimed about the same time by many different writers-by Brissot, by Mably, by Morelly, and above all by Rousseau. Their great idea was to restore what they called the state of nature, when primitive equality still reigned, and the earth belonged to none, and the fruits to all. They taught that there was no foundation for property but need. He who needed a thing had a right to it, and he who had more than he needed was a thief. Rousseau said every man had naturally a right to whatever he needed; and Brissot, anticipating the famous words of Proudhon, declared that in a state of nature "exclusive property was theft." It was so in a state of nature, but it was so also in a state of society, for society was built on a social contract, "the clauses of which reduce themselves to one, viz., the total transfer of each associate, with all his rights, to the community." The individual is thus nothing; the State is all in all. Property is only so much of the national estate conditionally conceded to the individual. He has the right to use it, because the State permits him, while the State permits him, and how the State permits him. So with every other right; he is to think, speak, train his children, or even beget them, as the State directs and allows, in the interest of the common good.

These ideas circulated in a diffuse state till 1793. They formed as yet neither system nor party. But when Joseph Baboeuf, discarding his Christian name of Joseph (because, as he said, he had no wish for Joseph's virtues, and so saw no good in having him for his patron saint), and taking instead the ominous name of Caius Gracchus, organized the conspiracy of the Egaux in that year, then modern socialism began, and it began in the form in which it still survives. Baboeuf's ambition was to found what he called a true democratic republic, and by a true democratic republic he meant one in which all inequalities, whether of right or of fact, should be abolished, and every citizen should have enough and none too much. It was vain, he held, to dream of making an end of privilege or oppression until all property came into the hands of the Government, and was statedly distributed by the Government to the citizens on a principle of scrupulous equality. Misled by the name Caius Gracchus, people thought he wanted an agrarian law and equal division. But he told them an agrarian law was folly, and equal division would not last a twelvemonth, if the participants got the property to themselves. What he wanted, he said, was something much more sublime-it was community of goods. Equality could only be made enduring through the abolition of private property. The State must be sole proprietor and sole employer, and dispense to every man his work according to his particular skill, and his subsistence in honourable sufficiency according to his wants. An individual who monopolized anything over and above such a sufficiency committed a social theft. Appropriation was to be strictly limited to and by personal need.

Baboeuf saw no difficulty in working the scheme; was it not practised every day in the army, with 1,200,000 men? If it were said, the soil of France is too small to sustain its population in the standard of sufficiency contemplated, then so much the worse for the superfluous population; let the greater landlords first, and then as many sansculottes as were redundant, be put out of the way for their country's good. He actually ascribed this intention to Robespierre, and spoke of the Terror as if it were an excellent anticipation of Malthusianism. Did any one say that, without inequalities, progress would cease and arts and civilization decay, Baboeuf was equally prepared to take the consequences. "Perish the arts," said a manifesto discovered with him at his apprehension, "but let us have real equality." "All evils," he said in his newspaper, "are on their trial. Let them all be confounded. Let everything return to chaos, and from chaos let there rise a new and regenerated world."

We have here just the revolutionary socialist democracy that is still rampant over Europe. Socialists now, indeed, generally make light of the difficulty of over-population which Baboeuf solved so glibly with the guillotine, and they contend that their system would humanize civilization instead of destroying it. They follow, too, a different tradition from Baboeuf regarding the right of property. While he built that right on need, they build it on labour. He said the man who has more than he needs is a thief; they say the man who has more than he wrought for is a thief. He would have the State to give every man an honourable sufficiency right off, according to his need; they ask the State to give every man according to his work, or, if unfit for work, according to his need, and they hold that this rule would afford every one an honourable sufficiency. But these differences are only refinements on Baboeuf's plan, and its main features remain-equality of conditions, nationalization of property, democratic tyranny, a uniform medium fatal to progress, an omnipresent mandarin control crushing out of the people that energy of character which W. von Humboldt said was the first and only virtue of man, because it was the root of all other excellence and advancement. In short, socialists now seek, like Baboeuf, to establish a democratic republic-a society built on the equal manhood of every citizen-and, like Baboeuf, they think a true democratic republic is necessarily a socialistic one.

This brings me to the next point I mentioned, the interesting problem of the true relations of socialism to democracy. Is socialism, as Stahl and others represent, an inevitable corollary of democracy? If so, our interest in it is very real and very immediate. For democracy is already here, and is at present engaged in every country of Europe in the very work of reorganizing the social system into harmony with democratic requirements. Its hammer may make little sound in some places, but the work proceeds none the less effectually for the silence, and it will proceed, slowly or more rapidly, until all the institutions of the country have been renovated by the democratic spirit. Will the social system, which will result from the process, be socialism? "The gradual development of the principle of equality," says De Tocqueville, "is a providential fact. It has all the characteristics of such a fact. It is universal; it is durable; it constantly eludes all human interference; and all events, as well as all men, contribute to its progress. Would it be wise to imagine that a social movement, the causes of which lie so far back, can be checked by the efforts of one generation? Can it be believed that the democracy which has overthrown the feudal system and vanquished kings will retreat before tradesmen and capitalists? Will it stop now that it has grown so strong, and its adversaries so weak?" If, then, the natural tendency of democracy is to socialism, to socialism we must eventually go.

But the natural tendency of democracy is not to socialism. A single plain but remarkable fact suffices to establish that. Democracy has been in full bloom in America for more than a century, and there are no traces of socialism there except among some German immigrants of yesterday; for, of course, the communism of the eccentric religious sects of America proceeds from religious ideals, and has no bearing one way or other on the social tendency of democracy. The labouring class is politically everything in that country-everything, at least, that electoral power can make them in an elective republic; and they have never shown any desire to use their political power to become socially everything or to interfere with the freedom of property. Had this been in any way the necessary effect of democratic institutions, it must have by this time made its appearance in the United States. De Tocqueville, indeed, maintains that so far from there being any natural solidarity between democracy and socialism, they are absolutely contrary the one to the other. "Democracy," he said in a speech in the Republican Parliament of France in 1849, "extends the sphere of individual independence; socialism contracts it. Democracy gives every individual man his utmost possible value; socialism makes every man an agent, an instrument, a cipher. Democracy and socialism coincide only in the single word equality, but observe the difference: democracy desires equality in liberty; socialism seeks equality in compulsion and servitude."

That is so far substantially true, but it cannot be received altogether without qualification. We have had experience in modern times of two different forms of democracy, which may be called the American and the Continental. In America equality came as it were by nature, without strife and without so much as observation; the colonists started equal. But freedom was only won by sacrifice; the first pilgrims bought it by exile; the founders of the Republic bought it a second time by blood. Liberty therefore was their treasure, their ark, their passion; and having been long trained in habits of self-government, they acquired in the daily exercise of their liberty that strong sense of its practical value, and that subtle instinct of its just limits, which always constitute its surest bulwarks. With them the State was nothing more than an association for mutual protection-an association, like any other, having its own definite work to do and no more, and receiving from its members the precise powers needed for that work and no more; and they looked with a jealousy, warm from their history and life, on any extension of the State's functions or powers beyond those primary requirements of public safety or utility which they laid upon it. In the United States property is widely diffused; liberty has been long enjoyed by the people as a fact, as well as loved by them as an ideal; the central authority has ever been held in comparative check; and individual rights are so general a possession that any encroachment upon them in the name of the majority would always tread on interests numerous and strong enough to raise an effectual resistance. Democracy has in America, accordingly, a soil most favourable to its healthy growth; the history, the training, and the circumstances of the people all concur to support liberty.

But on the Continent democracy sprang from very different antecedents, and possesses a very different character. Equality was introduced into France by convulsion, and has engrossed an undue share of her attention since. Freedom, on the other hand, has been really less desired than power. The Revolution found the affairs of that country administered by a strong centralized organization, with its hand everywhere and on everything, and the Revolution left them so. Revolution has succeeded revolution; dynasties and constitutions have come and gone; almost every part of the political and social system has suffered change; the form of government has been republic, empire, monarchy, empire and republic again; but the authority of government, its sphere, its attributes, have remained throughout the same. Each party in succession has seized the power of the State, but none has sought to curb its range. On the contrary, their temptation lay the other way; they have been always so bent on using the authority and mechanism of government to impair or suppress the influence of their adversaries, whom they regarded as at the same time the adversaries of the State, that they could only wish that authority to be larger and that mechanism more perfect than they already were. Even the more popular parties are content to accept the existing over-government as the normal state of affairs, and always strive to gain the control of it rather than to restrain its action. And so it has come about that, while they sought liberty for themselves, they were afraid to grant it to their opponents, for fear their opponents should be able to get the authority of this too powerful administration into their hands and serve them in the same way. The struggle for freedom has thus been corrupted into a struggle for power. That is the secret of the pathetic story of modern France. That is why, with all her marvellous efforts for liberty, she has never fully possessed it, and that is why she seems condemned to instability.

A growing minority of the democratic party in France is indeed opposed to this unfortunate over-government, but the democratic party in general has always countenanced it, perhaps more than any other party, because to their minds government represents the will of the people, and the people cannot be supposed to have any reason to restrain its own will. Besides, they are still dominated by the doctrines of Rousseau and the other revolutionary writers who looked with the utmost contempt on the American idea of the State being a kind of joint-stock association organized for a circumscribed purpose and with limited powers, and who held the State, on the contrary, to be the organ of society in all its interests, desires, and needs, and to be invested with all the powers and rights of all the individuals that compose it. Under the social contract, by which they conceived the State to be constituted, individuals gave up all their rights and possessions to the community, and got them back immediately afterwards as mere State concessions, which there could be no injustice in withdrawing again next day for the greater good of the community. Instead of enjoying equal freedom as men, the great object was to make them enjoy equal completeness as citizens.

From historical conditions like these there has sprung up on the Continent-in Germany as well as France-a quite different type of democracy from the American, and this type of democracy, while it may not be the best, the truest, or the healthiest type of it, has a tendency only too natural towards socialism. It contains in its very build and temperament organic conditions that predispose it to socialism as to its peculiarly besetting disease. It evinced this tendency very early in the history of the Revolution. As Ledru-Rollin reminded De Tocqueville, in replying to his speech, the right to labour on the part of the strong and the right to assistance on the part of the weak were already acknowledged by the Convention of 1793. Claims like these constitute the very A B C of socialism, and they have always moved with more or less energy in the democratic tradition of the Continent. Democracy, guided by the spirit of freedom, will resist socialism; but authoritative democracy, such as finds favour abroad, leans strongly towards it. A democratic despotism is obviously more dangerous to property than any other, inasmuch as the despot is, in this case, more insatiable, and his rapacity is so easily hid and even sanctified under the general considerations of humanity that always mingle with it.

It is therefore manifest that the question whether political democracy must end in social, is one that cannot be answered out of hand by deduction from the idea. The development will differ in different countries, for it depends on historical conditions, of which the most important is that I have now touched on, whether the national character and circumstances are calculated to guide that development into the form of democratic liberty, or into the form of democratic tyranny. A second condition is scarcely less important, viz., whether the laws and economic situation of the country have conduced to a dispersion or to a concentration of property. For even in the freest democracy individual property can only be permanently sustained by diffusion, and, if existing conditions have isolated it into the hands of the few, the many will lie under a constant, and, in emergencies, an irresistible temptation to take freedom in their hand and force the distribution of property by law, or nationalize it entirely by a socialistic reconstruction. It used to be a maxim in former days that power must be distributed in some proportion to property, but with the advent of democracy the maxim must be converted, and the rule of health will now be found in having property distributed in some proportion to power. That is the natural price of stability under a democratic régime. A penniless omnipotence is an insupportable presence. When supreme power is vested in a majority of the people, property cannot sit securely till it becomes so general a possession that a majority of the people has a stake in its defence, and this point will not be reached until at least a large minority of them are actually owners, and the rest enjoy a reasonable prospect of becoming so by the exercise of care and diligence in their ordinary avocations.

The belief of Marx and modern socialists, that the large system of production, with its centralized capital and its aggregation of workpeople in large centres, must, by necessary historical evolution, end in the socialist State, is, as Professor A. Menger has pointed out, not justified by history. The latifundia and slavery of the decline of the Roman empire were not succeeded by any system of common property, but by the institutions of medi?val law which made the rights of private property more absolute and exclusive. And in our own time the tendency to concentration of property in the hands of a few great capitalists is being corrected by the newer tendency to joint stock management, i.e., to the union and multiplication of small capitalists; and this is of course a tendency back from, and not on towards, the social revolution Marx conceived to be imminent. But though the modern concentration of wealth may not for the moment be increasing, and if it were, may not on that account necessarily spell socialism, it certainly spells social peril; and the future, therefore, stands before us with a solemn choice: either property must contrive to get widely diffused peacefully, or it will be diffused by acts of popular confiscation, or perhaps be nationalized altogether; and the fate of free institutions hangs upon the dilemma. For in a democratic community the peril is always near. De Tocqueville may be right in saying that such communities, if left to themselves, naturally love liberty; but there are other things they love more, and this profound political philosopher has himself pointed out with what exceptional vigour they nourish two powerful passions, either of which, if it got the mastery, would prove fatal to freedom. One is the love of equality. "I think," says he, "that democratic communities have a natural taste for freedom; left to themselves they will seek to cherish it, and view every privation of it with regret. But for equality their passion is ardent, insatiable, insistent, invincible; they call for equality in freedom, and if they cannot obtain that, they still call for equality in slavery. They will endure poverty, servitude, pauperism, but they will not endure aristocracy." The other is the unreined love of material gratification. By this De Tocqueville does not mean sensual corruption of manners, for he believes that sensuality will be more moderate in a democracy than in other forms of society. He means the passion for material comfort above all other things, which he describes as the peculiar passion of the middle classes; the complete absorption in the pursuit of material well-being and the means of material well-being, to the disparagement and disregard of every ideal consideration and interest, as if the chief end and whole dignity of man lay in gaining a conventional standard of comfort. When a passion like this spreads from the classes whose vanity it feeds to the classes whose envy it excites, social revolution is at the gates, and this is one of De Tocqueville's gravest apprehensions in contemplating the advance of democracy. For he says that the passion for material well-being has no check in a democratic community except religion, and if religion were to decline-and the pursuit of comfort undoubtedly impairs it-then liberty would perish. "For my part," he declares, "I doubt whether man can ever support at once complete religious independence and entire public freedom; and I am inclined to think that if faith be wanting in him he must serve, and if he be free he must believe." It is impossible, therefore, in an age when the democratic spirit has grown so strong and victorious, to avoid taking some reasonable concern for the future of liberty, more especially as at the same time the sphere and power of government are being everywhere continually extended, the devotion to material well-being, and what is called material civilization, is ever increasing, and religious faith, particularly among the educated and the working classes, is on the decline.

This is exactly the rock ahead of the modern State, of which we have been long warned by keen eyes aloft, and which seems now to stand out plainly enough to ordinary observers on the deck. Free institutions run continual risk of shipwreck when power is the possession of the many, but property-from whatever cause-the enjoyment of the few. With the advance of democracy a diffusion of wealth becomes almost a necessity of State. And the difficulty only begins when the necessity is perceived. For the State cannot accomplish any lasting or effective change in the matter without impairing or imperilling the freedom which its intervention is meant to protect-without, in short, becoming socialist, for fear of socialism; and when it has done its best, it finds that the solution is still subject to moral and economic conditions which it has no power to control. In trade and manufactures which occupy such vast and increasing proportions of the population of modern countries, the range of the State's beneficial or even possible action is very little; and in these branches the natural conditions at present strongly favour concentration or aggregation of capital. The small masters have simply been worsted in ordinary competition with the large producers, and so long as the large system of production continues the cheapest system of production, no other result can be expected. The social problem, therefore, so far as these branches are concerned, is to discover some form of co-operative arrangement which shall reconcile the large system of production with the interests of the labouring class, unless, indeed-what is far from impossible-the large system of production is itself to be superseded in the further advance of industrial development. The economic superiority of that system depends greatly on the circumstance that the power now in use-water or steam-necessitates the concentration of machinery at one spot. Mr. Babbage predicted fifty years ago that if a new power were to be discovered that could be generated in a central place in quantities sufficient for the requirements of a whole community, and then distributed, as gas is, wherever it was wanted, the age of domestic manufactures would return. Every little community might then find it cheaper, by saving carriage, and availing itself of cheaper local labour, to manufacture for itself many of the articles now made for it at the large mills; and the small factory or workshop, so suitable, among other advantages, for co-operative enterprise, would multiply everywhere. Now, have we such a power in electricity? If so, not the least important effect of the new agent will be its influence on the diffusion of wealth, and its aid towards the solution of the social problem of the nineteenth century.

With land and agriculture the situation is somewhat different. The distribution of landed property has always depended largely on legal conditions; and since these conditions have-in this country at least-wrought for two centuries in favour of the aggregation of estates, their relaxation may reasonably be expected to operate to some extent in the contrary direction. Too much must not be built on this expectation, however, for the natural conditions are at present, at least, as partial to the large property as the legal. The abolition of entail and primogeniture, by emancipating the living proprietor from the preposterous tyranny of the dead, and by bringing to the burdened the privilege of sale, must necessarily throw greater quantities of land into the market than reach it now, but the redistribution of that land will as necessarily conform to the existing social and economic circumstances of the country; and England will never cease to be characterized by the large property, so long as its social system lends exceptional consideration to the possession of land, and its commercial system is continually creating an exceptional number of large fortunes. The market for the large estate is among the wealthy, who buy land as an instrument of enjoyment, of power, of social ambition; and what with the wealth made at home and the wealth made in the colonies, the number of this class is ever on the increase; the natural market for the small estate, on the other hand, is among the farming class, to whom land is a commercial investment, and the farmers of England, unlike those of other countries, unlike those of our own country in former days, are as a rule positively indisposed to purchase land, finding it more profitable to rent it. This aversion, however, is much more influential with large farmers than with small ones. It is commonly argued as if a small farmer who has saved money will be certain to employ it in taking a more extensive holding, but that is not so. On the contrary, he more usually leaves it in the bank; in some parts of Scotland many small farmers have deposits of from £500 to £1000 lying there at interest; they studiously conceal the fact, lest their landlords should hear of it, and raise their rent, and they submit to much inconvenience rather than withdraw any portion of it, once it is deposited. Their ruling object is security and not aggrandisement, and consequently if land were in the market in lots to suit them, they would be almost certain to become purchasers of land. In forecasting the possibility of the rise of a peasant proprietary in this country, it is often forgotten that, whether land is a profitable investment for the farmer or not, the class of farmers from whom such a proprietary would be generated is less anxious for a profitable investment than for a safe one, and that to many of them, as of other classes, independence will always possess much more than a commercial value.

But, however this may be, land is distributed by holdings as well as by estates, and in connection with our present subject the distribution by holdings is perhaps the more important thing of the two. "The magic of property" is no exclusive prerogative of the soil; ownership in stock will carry the same political effects as ownership in anything else; and a satisfactory system of tenant right may yield all the social and economic advantages of a peasant proprietary. In fact, tenant right, so far as it goes, is proprietorship, and it has before now developed into proprietorship even in name. The old lamented yeomanry of England were, the great majority of them, copyholders, and a copyholder was simply a tenant-at-will whose tenant right was consolidated by custom into a perpetual and hereditary property; and if the soil of England will ever again become distributed among as numerous a body of owners as held it in former ages, it will most likely occur through a similar process of consolidation of tenant right. But as it is-and though this is a truism, it is often overlooked in discussions on the subject-the tenants are owners as well as the landlords; their interests enlist them on the side of stability; they have a stake in the defence of property; and even though the prevailing tendency to the accumulation of estates continues unchecked, its peril to the State may be mitigated by the preservation and multiplication of small and comfortable holdings, which shall nourish a substantial and independent peasantry, and supply a hope and ambition to the rural labourers. This is so far well. We know that it is an axiom with Continental socialists that a revolution has no chance of success, however well supported it may be by the artisans of the towns, if the peasantry are contented and take no part in it; and the most serious feature in more than one of the great countries of Europe at this moment is the miserable condition into which their agricultural labourers have been suffered to fall, and their practical exclusion from all opportunities of raising themselves out of it. The stability of Europe may be said to rest on the number of its comfortable peasantry; the dam of the Revolution is the small farm. This is not less true of England than of the Continent, for although the agricultural population is vastly outnumbered by the industrial in this country, that consideration really increases rather than diminishes the political value of sustaining and multiplying a contented tenantry.

Now England is the classical country of the large farm as well as of the large estate. Its holdings have always been larger than those of other nations; they were so when half of them were owned by their occupiers, they are so still when they are rented from great landlords. The large farms have grown larger; a holding of 200 acres was counted a very large farm in the time of the Commonwealth; it would be considered a very moderate one in most English counties now. But yet the small farm has not gone the way of the small estate. The effects of consolidation have been balanced to such a degree by a simultaneous extension of the area of cultivation that the number of holdings in England is probably more considerable than it ever was before. If we may trust Gregory King's estimate, there were, 200 years ago, 310,000 occupiers of holdings in England, 160,000 owners, and 150,000 tenants; in 1880 there were, exclusive of allotments, which are now numerous, 295,313 holdings of 50 acres and under, and 414,804 holdings altogether. Moreover, the future of the small farm is much more hopeful than the future of the small estate or the small factory. All admit the small holding to be preferable to the large for dairy farming and market gardening; and dairy farms and market gardens are two classes of holdings that must continue to multiply with the growth of the great towns. But even with respect to corn crops, it is now coming to be well understood that the existing conditions of high farming would be better satisfied by a smaller size of holding than has been in most favour with agricultural reformers hitherto; because then, and then only, can the farmer be expected to bestow upon every rood of his ground that generous expenditure of capital, and that sedulous and minute care which are now necessary to make his business profitable. Without entering on the disputed question of the comparative productiveness of large and small farms, it ought to be remembered, in the first place, that the economic advantage of the large farm-the reason why the large farmer has been able to offer a higher rent than the smaller-is not so much because he produces more, as because he can afford to produce less; and, in the next place, that the small farmer has heretofore wrought, not only with worse appliances than the large-which perhaps he must always do-but also with less knowledge of the theory of his art, and worse conditions of tenure-in both of which respects we may look for improvement in the immediate future. Even as it is, we find small farmers equalling the highest production of the country. In the evidence before the Duke of Richmond's Commission, there is a case of a farmer of three acres producing 45 bushels per acre, or about twice the average of the season in those bad years that impoverished the larger farmers. The same body of evidence seems to prove that the small farmer has more staying power-a better capacity of weathering an agricultural crisis-than the large; for he has much less frequently petitioned for a reduction of rent-an advantage which landlords may be expected not to overlook. He enjoys, too, a monopoly of the superior efficiency of interested labour, and as the personal efficiency of the labourer-his skill, his knowledge, his watchfulness, his care-are becoming not less, but more important with the growth of scientific farming, whether in corn raising or cattle rearing, the small farm system will probably continue to hold, if not to enlarge, its place in modern agriculture; and if it is able to do so, it will constitute one of the best buttresses against the social revolution.

It remains to mark the spread of socialism in the various countries of Europe and America, and to describe its present position; but this I shall reserve for next chapter.

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