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Full text of "Modern socialism, as set forth by socialists in their speeches, writings and programmes"

MODERN SOCIALISM 



AS SET FORTH BY SOCIALISTS 

IN THEIR SPEECHES, WRITINGS, 

AND PROGRAMMES 



EDITED, WITH AN INTRODUCTION, BY 
R. C. K. ENSOR 

THIRD EDITION, REVISED AND ENLARGED 




LONDON AND NEW YORK 

HARPER Gf BROTHERS 

45, ALBEMARLE STREET, W. 
1910 



PREFACE 

A BOOK like the present could not possibly be completed on 
its English side without the kind co-operation of many English 
Socialists. For permission to reprint important matter which 
has appeared otherwise, I am deeply indebted to Mr. and Mrs. 
Sidney Webb, to the literary Trustees of William Morris, to 
Mr. J. Keir Hardie, M.P., and to Mr. John Burns, M.P., to 
the Fabian Society, to the Labour Leader^ Limited, and to the 
Clarion Newspaper Company. 

For the foreign translations I am personally responsible, 
except in the case of the extract from Kautsky's " Social 
Revolution. " For this I am indebted to the kindness of Mr. 
J. B. Askew and the Twentieth Century Press , whose translation 
of the whole work has laid every English Socialist under a 
sensible obligation. 

But for Mr. Askew, very little translation from foreign 
Socialist writers has been attempted since that of Marx's 
classical works in the 'eighties. One result of this, and of the 
limited currency of conscious Socialism in England, is that the 
translator has no cut-and-dried vocabulary. Words like 
" proletariate," " proletarian," " bourgeoisie," " bourgeois," 
lack in English the everyday actuality which their equivalents 



vi PREFACE 

in French and German possess, and it is a question whether 
to use them. I have used "proletariate," "proletarian," 
without hesitation, only regretting that the antithesis between 
them and " capitalists" has not more generally replaced in 
English the meaningless one between "poor" and "rich." 
" Bourgeoisie " and " bourgeois " are more doubtfully adopted ; 
the objection to substituting " middle-class " is, that Socialists 
do not treat the bourgeoisie as anything intermediate, but 
essentially as one of two parties to a duel. The poverty 
of English in words expressing the general conceptions of 
sociology is not confined to English Socialism. We had to 
borrow " Philistine " from Germany, and we have still no 
equivalent for " rentier." 

English people interested in Socialism may miss a reference 
to certain movements, which in this country are its allies, 
though elsewhere sometimes its rivals such as "Christian 
Socialism," or the tendencies expressed by Carlyle and 
Ruskin. To treat these upon a European scale, however, 
would have meant going very far afield without really increas- 
ing knowledge of Socialism per se. I have, therefore, with 
some regret, left them wholly on one side. 

In conclusion, I must thank a great number of friendly 
advisers, not all Socialists, for much friendly advice and 
assistance. 

October , 1903. 



CONTENTS 



PACK 

INTRODUCTION TO THE THIRD EDITION ix 

INTRODUCTION TO THE SECOND EDITION . . . xii 

INTRODUCTION TO THE FIRST EDITION . . . xix 
I. THE DIFFERENCE BETWEEN MODERN AND UTOPIAN 

SOCIALISM. BY A. BEBEL i 

II. MARXIAN SOCIALISM IN POLITICS. BY W. LIEB- 

KNECHT . 4 

III. AN ACCOUNT OF MARX'S THEORY. BY F. ENGELS . 14 

IV. THE PROGRAMME OF THE "COMMUNIST MANIFESTO." 

BY KARL MARX AND F. ENGELS ... 35 

V. THE STANDPOINT OF LASSALLE . . . . .38 

VI. THE SAINT-MANDE PROGRAMME. BY A. MILLERAND . 48 

VII. FRENCH REFORMIST SOCIALISM. BY A. MILLERAND . 56 

VIII. THE LABOUR QUESTION FROM THE SOCIALIST STAND. 

POINT. BY WILLIAM MORRIS 65 

IX. PROBLEMS OF MODERN INDUSTRY. BY SIDNEY AND 

BEATRICE WEBB 90 

X. WHETHER CLASS ANTAGONISM is SOFTENING DOWN. 

BY K. KAUTSKY 114 

XI. SOCIAL REFORM IN GERMANY AND IN FRANCE. BY G. 

VON VOLLMAR 135 

XII. THE REVOLUTIONARY AND REFORMIST CONTROVERSY, 
AS ILLUSTRATED AT THE BORDEAUX CONGRESS OF THE 
FRENCH SOCIALIST PARTY 163 

XIII. THE THEORY OF INCREASING MISERY . . . .185 

XIV. GERMAN SOCIALISTS AND THE GENERAL STRIKE . . 189 
XV. SOCIALISM AND THE CAPITALISTIC TRANSFORMATION OF 

AGRICULTURE. BY E. VANDERVELDE . . .198 
XVI. SOCIALISM AND AGRICULTURE AS OFFICIALLY REGARDED 

BY THE GERMAN SOCIAL DEMOCRATIC PARTY . . 220 
vii 



VI 11 



CONTENTS 



XVII. THE FREE TRADE CONTROVERSY IN RELATION TO 
INDUSTRIAL PARASITISM AND THE POLICY OF A 
NATIONAL MINIMUM. BY SIDNEY AND BEATRICE 

WEBB 

XVIII. THE ECONOMICS OF DIRECT EMPLOYMENT. BY THE 
FABIAN SOCIETY . - -r' 

XIX. MUNICIPAL SOCIALISM. BY THE RIGHT HON. JOHN 

BURNS, M.P., L.C.C 

XX. SOCIALISM AND CO-OPERATION. BY E. ANSEELE 

XXI. THE POLICY OF INDEPENDENT LABOUR. BY 
J. KEIR HARDIE, M.P 

XXII. PROGRAMME OF THE GERMAN SOCIAL DEMOCRATIC 
PARTY 

XXIII. PROGRAMME OF THE BELGIAN LABOUR PARTY 

XXIV. PROGRAMME OF THE AUSTRIAN SOCIAL DEMOCRATIC 

PARTY 

XXV. A FRENCH PROGRAMME OF 1902 .... 
XXVI. PROGRAMMES OF THE ENGLISH SOCIALIST ORGANIZA- 
TIONS 

i. THE PROGRAMME OF THE SOCIAL DEMO- 
CRATIC FEDERATION .... 

ii. THE PROGRAMME OF THE INDEPENDENT 
LABOUR PARTY (1906-7) 

i*-" in. THE PROGRAMME OF THE FABIAN SOCIETY 
XXVII. CONSTITUTION OF THE LABOUR PARTY . 
XXVIII. ELECTION ADDRESSES OF 1906 

i. OF THE GERMAN SOCIAL DEMOCRATS FOR 

THE REICHSTAG ELECTIONS, 1907 
ii. OF THE FRENCH UNITED SOCIALISTS, 1906 
in. OF J. R. CLYNES, M.P., AND G. D. 

KELLEY, M.P 

iv. OF WILL THORNE, M.P., 1906 
XXIX. THE FUTURE. BY ANATOLE FRANCE 
INDEX 



229 
242 

265 
285 

303 

323 

334 
339 

35i 

357 
359 
364 



3 6 9 
373 

380 
383 
388 
391 



INTRODUCTION TO THE THIRD 
EDITION 



A NEW and cheaper edition of this book seems justified by 
its continued sale and the absence of any rival on its own 
ground. Most of its excerpts are still entirely typical; and 
although no doubt the second piece by M. Millerand and 
the piece by Mr. Burns might not have been chosen to-day 
after the final secession of their authors from the ranks of 
regular Socialism, the interest of their authorship is in some 
respects heightened and not diminished by what M. Millerand 
and Mr. Burns have since done. The head-notes and also the 
programmes of the different English organizations have been 
revised up to date ; and the Introductions to the two previous 
editions have been left as they were written, giving a sketch of 
the movement down to January i, 1907. 

Of what has happened since, it is not proposed to write 
here at length. In the United Kingdom the Labour Party, 
despite much chaotic criticism and the serious lack of cohesion 
which results from its lack of a Press of its own, has preserved 
its independence, proved its utility, and increased its numbers. 
In France the " United Socialist " party has gone steadily 
backwards. M. Jaures has been driven by loyalty to his 
Guesdist colleagues to adopt and defend their sterile anti- 
Governmentalism ; and to this must largely be attributed both 
the disappointing barrenness of M. Clemenceau's Cabinet (just 
formed when the last edition of this book was issued) and 
the continued rise of the anti-Parliamentarian " revolutionary 



IX 



x INTRODUCTION TO THE THIRD EDITION 

trade-unionists." The two ablest followers, by far, of the old 
Jauresist tendency MM. Viviani and Briand, who have left 
the party, are with M. Millerand members of the Cabinet of 
which M. Briand is Premier ; and by these and similar side- 
channels French Socialism makes up somewhat for its ebb 
along the main front. In Germany the anti-Socialist coalition 
engineered by Prince Biilow in 1907 reduced the party's 
strength in the Reichstag by a half; but they polled even 
so an increased vote, and have fared remarkably well at 
by-elections since; while at successive congresses their ten- 
dency towards Reformism becomes more marked. The largest 
Socialist party during recent years has been that in the 
Austrian Reichsrath, which is also penetrated by the Reformist 
tendency. In Italy the Socialists secured 42 seats at the 
general election in May, 1909, which have at by-elections 
increased to 44. This growth, almost a doubling of their 
previous strength, coincided with a decided triumph of the 
Reformists over the Revolutionaries inside the party ranks ; 
but the differences between these sections have since recru- 
desced in a way which may herald another set-back. Speaking 
generally, one may say of nearly every Socialist or Labour 
party in Europe except the Belgian, that it is weakened by 
constantly halting and oscillating between the two types of 
Socialist opinion ; that Reformism is practically the only one 
which appeals widely enough to be effective at the polls ; but 
that the Revolutionary idea obtains from time to time a new 
lease of life among the active spirits of the movement. 

Turning to that aspect of Socialist advances which is 
embodied in machinery and institutions, we see during recent 
years on the whole a standstill, and in some cases an ebb, in 
the development of collective enterprise. France under M. 
Clemenceau nationalized two great railways, but in England 
the policy of municipal trading and direct employment has 
been abandoned in some important instances. On the other 
hand, the policy of making social provision for individual 
needs and of taxing unearned forms of income to pay for it 



INTRODUCTION TO THE THIRD EDITION xi 

goes rapidly ahead, and is securing in varying degree the 
assent of quite old-fashioned parties in most of the civilized 
countries. Recent developments of it in our own scarcely 
require enumeration ; in others it has on many sides gone 
much further. 

No British election addresses of 1910 have been included 
in this volume, as the circumstances of the late election com- 
pelled all serious candidates to deal, mostly at great length, 
with issues not specifically Socialist. 



INTRODUCTION TO THE SECOND 
EDITION 

THE last three years have witnessed a rapid spread of Socialist 
ideas in most of the leading states. In England Socialism has 
appeared to many in a new light since the accession of a 
Labour Party, thirty-one strong, to the House of Commons. 
That accession took middle-class opinion by surprise, but it 
should not have ; for the party had been built up slowly by 
arduous and unconcealed effort, and its emergence could be 
foreseen three years ago, as in this volume it was. 

So much ink has been wasted in ignorance over the Party, 
that it may be worth while setting down a few facts about 
The English *** Firstly, of its thirty-one members, 1 twenty 
Labour belong to Socialist organizations, seventeen to the 
Party. Independent Labour Party, one to the Social 

Democratic Federation and two, otherwise unattached, to the 
Fabian Society (which also has three members sitting on the 
Radical benches). Secondly, as between those members of 
the Labour Party who belong to Socialist organizations and 
those who do not, there not only is reported to exist personal 
harmony, but there undoubtedly exists no fundamental doctrinal 
discord. The things which the leading trade-unionists want 
and demand, have long been Socialistic ; they have differed 
from the Socialists in relying almost solely on private collective 
bargaining and deprecating comprehensive action in politics. 

1 Twenty-nine were elected as such, and two joined it on the morrow 
of their election. 

zii 



INTRODUCTION TO THE SECOND EDITION xiii 

This difference has now disappeared, for those of them who are in 
the Labour Party. In the first session of Parliament they have 
secured an Act restoring trade-unions to the position which 
they were supposed to occupy before the Taff Vale decision. 
But the Labour-Socialist federation shows no signs of being 
weakened thereby, for Labour has learned very much in recent 
years, both of its weakness while it keeps outside politics and 
of its possible strength if it goes into them. And the new 
conviction is not confined to the leaders, but has taken root 
remarkably among the rank and file throughout the country. 

Meantime, in international interest for Socialists, Great 
Britain by no means takes first place. The new House of 
Commons is eclipsed by the new French Chamber, that 
elected in May, 1906, which is the most advanced House yet 
chosen by a first-class nation. The French, largely French 
through having the second ballot, have developed Socialism, 
a party system quite unlike the English ; instead of our two 
great parties, each welded rather by mechanical pressure than 
by community of ideas and principles, they have a number of 
parties each definitely and logically standing for a particular 
political point of view. Of eight such parties in the new 
Chamber three, the Radicals, Socialistic Radicals, and 
Socialists, wield together a substantial majority; while of 
these three the least advanced, the Radicals, would be thought 
very advanced in our House of Commons, and the largest, the 
Socialistic Radicals, would here be denounced as Socialists, 
and have a programme for immediate purposes resembling 
that of our Fabians. Add that the Socialists themselves 
number seventy-five in a Chamber of 591, that they are 
disproportionately rich in able men (the ablest of all Socialist 
shades having secured election), and that fifty-four of them 
regularly act as one tactical unit. As soon as this Chamber 
assembled, occurred the famous debate between M. Jaures, 
the leader of the United Socialists, and M. Clemenceau, the 
leader of the Socialistic Radicals. Nothing could be less 
accurate than to suppose this a debate between Socialism and 



xiv INTRODUCTION TO THE SECOND EDITION 

anti-Socialism. It was one between a systematic believer 
in Socialist principles and an empirical believer in particular 
Socialistic measures. The victory of Socialist tendencies took 
a plain shape in the autumn, when M. Sarrien was replaced by 
M. Clemenceau as Prime Minister. The new Cabinet in- 
cluded three Socialists, MM. Millerand, Briand, and Viviani, 
the last, who is perhaps the strongest of the three, taking a 
new Ministry, that " of Labour and of Social Prevision " 
(prevoyance sociale\ a significant title. The Ministerial pro- 
gramme prominently included old age pensions, the nationali- 
zation of two large railways, the facilitation of collective 
bargaining, and a progressive income-tax. The near future in 
France is complicated by the struggle between Church and 
State; but it will be surprising if some of these Socialistic 
measures are not carried in the lifetime of the present 
Chamber. 

At the other end of Europe, Socialism has played a great 

part in the upheaval in Russia. Its course, like that of all 

Russian reform movements, has been much 

chequered by party divisions; but it can claim, 

not only to have supplied the bulk of the militant agitators by 

whom the awakening first of town workmen and then of 

peasants has been achieved, but to have held out its ideal to 

the whole nation across the welter of to-day's chaos as a beacon 

for the footsteps of reform. One of the first consequences of 

the Russian crisis was the change in Austria, where 
Austria. . ... . . . , rr 

at last a measure establishing manhood suffrage 

has been carried. No single force outside the Parliament 
contributed so much to this end as the Austrian Social 
Democracy, which is now very strong in numbers, though on 
the old franchise very slightly represented in the Reichsrath. 
Its decisive step was a demonstration in favour of universal 
suffrage in Vienna in November, 1905, when over 300,000 
Socialists marched in perfect order through the streets. 
Another country immediately affected by the Russian crisis 
was Scandinavia, where the result was the severance of 



INTRODUCTION TO THE SECOND EDITION xv 

Sweden and Norway. Here, when the prospect of war between 
the two countries looked gloomiest, the Socialists decisively 
stopped it by threatening a general strike, a threat Norway and 
which the Swedish Government knew, from an Sweden, 
experience in 1902, could and would be carried out. The 
strongest European foothold, perhaps, which Socialism has, is 
in the very democratic State of Denmark, which 
also leads the Continent in the practical realization 
of Socialist ideas. In 1903 the Danish Socialists cast 55,593 
votes and elected sixteen members of the Folkthing; in 1906, the 
corresponding figures were 76,566 (over a quarter of the national 
poll) and twenty-four. Moreover, in 1906, at the municipal 
and communal elections, out of 417 seats for which polls were 
taken, 155 fell to the Socialists, who with the Radicals have 
the majority in Danish local government. These figures are 
worth quoting because they show, as the history of New 
Zealand also shows, that Socialistic ideas do not necessarily 
lose, but may actually increase their popularity by being 
embodied rapidly and visibly in the statute-book and 
institutions of a country. 

Italy is the only important State in which Socialism has lost 
ground ; in 1900 its Chamber had thirty-three Socialist deputies, 
in 1906 only twenty-four. This has been, however, 
less due to outside pressure than to internecine 
differences within the party, and may be expected to change 
when, as at last seems probable, the differences diminish. In 
Belgium the arresting of the Socialist march seems {um 
less real ; there can be little doubt that the effective 
forces of Socialism there have never been stronger than they 
are to-day. Not the least remarkable of all Socialist develop- 
ments is that shaping itself blindly and inarticulately in the 
United States of America. The Socialist parties The United 
there are polling large votes in some centres, states * 
though so far these bear an insignificant relation to the 
amount of real Socialist opinion indicated by the circulation 
of Socialist and Socialistic literature, The campaign of Mr. 



xvi INTRODUCTION TO THE SECOND EDITION 

Hearst for the mayoralty of New York in the autumn of 
1906 gives a juster idea of this movement, which is quickened 
by discontent against the trusts. 

The last three years have seen some minor developments 
of Socialist statesmanship and theory. In England this work 
inner de- still largely devolves on the Fabian Society, which 
veiopments. h as carried its own gospel of "gas and water" 
Socialism a step further by an elaborate study of the different 
areas and authorities requisite for different branches of 
collectivism, and has tried to acclimatize the Australasian 
gospel in Europe by some practical proposals for a legal 
minimum wage. Abroad the most noticeable feature has 
been a slackening of the tension between " reformist " and 
" revolutionary " Socialists. Concessions have been made on 
both sides. In France M. Jaures induced his large reformist 
wing to conciliate and finally re-unite with the smaller revo- 
lutionary fraction. In other countries, such as Italy and 
Germany, the advances have come from the revolutionary 
wing, whose best leaders saw themselves undermined and 
out-Heroded by the general strike propaganda, against which 
they formed with the reformists a coalition of common-sense. 

This general strike propaganda requires some detailed 
study, since it is the first big attempt for thirty years to 
General divert and subvert the Socialist movement by an 
strike pro- Anarchist movement from within. It derived its 
paganda. main impetus from the supposed success of the 
great strike in Russia, which wrung from the Tsar the 
ambiguous constitution of October 30, 1905. Russian con- 
ditions are unique; and we need not here examine how far 
they rendered that general strike the best or the only tactics 
in a fight for Russian political freedom. Events have since 
shown, that the first estimates of its success were too high, 
while the failures of frequent attempts to re-enact its drama 
prove how terribly it overstrained the human actors. Its 
example, however, struck Western Europe at a psychological 
moment. In Germany, Italy, and France alike, there was 



INTRODUCTION TO THE SECOND EDITION xvii 

lurking among Socialists a new impatience at Parliamentary 
delays. In Germany the powerlessness of the Socialist 
members of the Reichstag, in spite of the three million 
votes behind them, was felt to be well-nigh intolerable. In 
the French and Italian democracies the complaint was 
different; their Parliamentary Socialists had been anything 
but uninfluential ; but a fruitful period of Socialist alliances 
with non-Socialist Ministries was drawing to a close, to an 
inevitable accompaniment of self-criticism and disappoint- 
ments. Under such influences the ultra-revolutionary wings 
of the Socialist parties developed a new gospel, which they 
claimed to be Marxian, though it really was an anti-Marxian 
revival of the doctrines advanced in the early 'seventies by 
Marx's Anarchist rival and adversary, Bakunin. They argued 
that State action was fundamentally vicious, and the new 
organization of society must be a sort of federation of 
autonomous trade-unions of producers. Their means for 
attaining this was the general strike, supplemented by 
insurrectionary violence; and Parliamentarism, because it 
implied associating Socialism with the State, was banned. 
This doctrine is now known on the Continent as le 
syndicalists revolutionnaire^ or " revolutionary trade- 
unionism." Its exponents include, in Germany, Rosa 
Luxemburg ; in Italy, Labriola ; in France, the Confede'ration 
du Travail, organized by men like M. Griffuelhes, and several 
brilliant writers such as Georges Sorel. 1 For nearly a year 
after the Russian outburst it spread; and in France, during 
April, 1906, it gave rise to serious political disturbances. 
But soon the tide ran against it. For one thing, the trade- 
unionists rejected it, wherever, as in Germany, the trade-unions 
have large funds and are seriously proficient in collective 
bargaining ; for another, it aroused the natural hostility of the 
great "revolutionary" leaders who believe in Parliamentary 
methods, such as Bebel and Enrico Ferri. In Germany the 

1 Sorel's eloquent " Reflexions sur la Violence " is among the best short 
expositions of this point of view, 

b 



xviii INTRODUCTION TO THE SECOND EDITION 

Social Democrats, having dallied with the general strike at 
their Jena congress in 1905, repudiated it (under the strongest 
pressure from their trade-unions) at their Mannheim Congress 
in 1906. In Italy, at the Rome Congress in 1906, the party 
was split in a novel way, the " reformists " and the great 
majority of the "revolutionists" composing their quarrels 
and combining to leave a small paring of " syndicalists " 
out in the cold. In France the general-strike propaganda 
has steadily declined, since the election of the present 
Chamber in May, 1906, encouraged a more hopeful view of 
Parliament. For the present, it probably may be dismissed 
as moribund ; but it needs to be carefully appreciated, both 
because of its prominence in the tale of the past year, and 
because it is certain periodically to recrudesce. 



INTRODUCTION TO THE FIRST 
EDITION, 1903 

SOCIALISM has too long an4 varied a history for its study, with 
that of the different national problems which it implies, to be 
profitably attempted as a whole within short compass. Some 
standpoints for abstraction must be selected. In this volume 
there are two ; and the subject is the political Modern 
Socialism of the present. It is, of course, impossible political 
to know the present without knowing something of Soelallsm 
its antecedents ; but the antecedents illustrated here are intro- 
duced rather for that reason than for the sake of mere anti- 
quarianism. Thus Marx, Engels, and Lassalle appear in this 
volume ; but the important thing for its purposes is not what 
they actually meant to teach, so much as what the modern 
Socialist politicians of France, Germany, Belgium, Italy, or 
England have learned from them. 

There are two advantages in this method. On the one 
hand, Socialism is a faith whose part in politics was never so 
great as it is to-day, nor ever seemed surer of an important 
future ; on the other, the political Socialism now confronting 
the world is singularly little realized by English politicians. 
The majority of them still confuse it with a Socialism of sixty 
years ago, and chiefly appreciate in that the picturesque crudities 
which have not lasted. 

This ignorance is the less excusable, because the Socialist 
parties regularly do a thing which no others do formulate 
a written programme. Of these a considerable its pro- 
number are made available to English readers in grammes, 
the present volume. They may, of course, be read with some 

xix 



xx INTRODUCTION, 1903 

reserves, especially where not recent. But the oldest here 
given, the Erfurt Programme of the German party, only dates 
from 1891; and although, if it were now re-examined, many 
points in it might claim revision, they are insignificant beside 
what would still be unanimously upheld. Each programme 
declares certain principles, and appends to them a list of 
" immediate " reforms. These lists repay study, and if, 
perhaps, they strike an English reader as slapdash, he should 
remember the Continental aversion to shackling the legislator 
by forecasting legislation in detail. 1 The foreign programmes 
have, in fact, been threshed out and voted upon by large 
assemblies democratically representing very large organized 
parties. 

Let us here first briefly review the extent of Socialism in 
Europe. For this we may usefully classify Continental 
its extent countries into those which have representative 
in Europe, democratic Governments and those which have 
not. Among the former may be reckoned France, Italy, 
Switzerland, and Denmark ; among the latter, Germany, 
Austria, Spain, 2 and Russia. Belgium, Holland, and Sweden 
we might class as " mixed ; " their Governments are essen- 
tially Parliamentary, but not democratically representative. 3 
Obviously, Socialists are in a different position in the demo- 
cratic and undemocratic countries. In the former they can 
at once exert influence in proportion to their numbers ; can 
profitably agitate for reforms one at a time; can negotiate 
with and even enter the Governments. In the latter they 
cannot; their only immediate aim must be to multiply their 
numbers as a party, and for this a hard-and-fast aggressive 
programme and uncompromising resistance to their arbitrary 
Governments have been found of most service. Here, too, 

1 Cp. Sir C. Ilbert's Legislative Methods and Forms, chaps, iii. and xi. 

2 Spain has nominally a liberal franchise, but its operation is an 
acknowledged farce. 

3 Belgium is the nearest to being so, but a system of privileged plural 
voting has still to be surmounted by a working-class party. 



INTRODUCTION, 1903 xxl 

their organization cannot lose sight of an ultimate appeal to 
force, not, perhaps, to instal Socialism, but to instal preliminary 
democracy; which has not been won without force, or the 
threat of force, in any modern State. They tend, therefore, 
in undemocratic countries to be the more numerous, united, 
doctrinaire, and imposing, and in democratic countries to be 
fewer, less united, less uncompromising, but more constructive 
and more influential. 

In France, Italy, and Denmark, Socialists have for some 
years inspired and dominated the Government. 1 In 1899 the 
Dreyfus case was skilfully used by M. Jaures, F Panee . 
leader of the French Socialist party, to effect a 
working agreement between the Socialists and other demo- 
cratic parties in France, whence issued the Waldeck-Rousseau 
Cabinet, with M. Millerand, a Socialist, for its Minister of 
Commerce. The Cabinet lasted from June, 1899, to June, 
1902, when, after winning a general election, it gave way to 
the very similar Cabinet of M. Combes, also dependent on 
Socialist votes, although not including a Socialist. Both 
Cabinets have been fertile from the Socialistic standpoint. 
In Italy, 2 in February, 1901, a similar situation was realized 
by the Zanardelli-Giolitti Government, which con- ItaJ 
tained no Socialists, but depended on Socialist 
support. The negotiating parties were Signer Giolitti on 
the side of the Government, and Signor Turati on that 

1 In France this policy provoked a Socialist split, two sections under 
MM. Guesde and Vaillant leaving the "French Socialist party," and, 
finally, coalescing into the (much smaller) "Socialist party of France." 
In Italy there was no split, but there have been extremely violent dL- 
sensions. 

2 The Italian Socialist party is of recent but very rapid growth. It 
sent to the Chamber in 1895 eight deputies, in 1897 sixteen, and in IQCO 
thirty-three. In 1900 it captured control of no less than 1268 municipal 
and communal councils, to which a remarkable law, passed by the Zanar- 
delli-Giolitti Government, subsequently gave unique facilities for developing 
municipal Socialism. In 1905 and 1906 this growth of the party was 
considerably pruned back. 



rxii INTRODUCTION, 1903 

of the Socialists, and the result was a Socialistic policy 
which may fairly be said to have changed the face of Italian 
administration. 1 This came partially to an end in June, 1903, 
when the Socialists, perhaps prematurely, broke away, and 
Denmark. Signor Giolitti resigned office. In Denmark, during 

the same period, the Socialists supported, to their 
advantage, the Radical Government of Professor Deuntzer. 
Shortly before the general election of June, 1903, they broke 
off relations, and in the election polled 29 per cent, more 
votes than in 1 90 1. 2 In all these three countries very remark- 
able experiments in Socialistic legislation and administration 
have been initiated. In Switzerland Socialists are prominent 
only in the towns, especially Zurich, and their forte is municipal 
Socialism. In 1901 their national party organization absorbed 
the chief non-Socialist workers' organization, the Griitli, and 
has since made progress. 

Turning to the undemocratic countries, the first to consider 
is, of course, Germany. The State Parliaments and the town 
Germany councils are elected on very undemocratic bases, 

and few Socialists figure on them. The exception 
is the little State of Hesse, where, however, their activity, 
though interesting, cannot compare with those we have men- 
tioned. The imperial Reichstag is elected by universal suff- 
rage, but its active power is nearly nil, and its composition is 
vitiated by an obsolete distribution of seats. 8 The remarkable 
votes polled at Reichstag elections by the Social Democrats * 

1 For a summary of some of its labour measures, see an article by Mr. 
Bolton King in the Economic Journal for September, 1903. 

2 In 1895 eight Danish Socialists were elected to the Folkething, in 
1901 fourteen, in 1903 sixteen, in 1906 twenty-four. An exceptional 
feature of the party is its strength in rural districts. 

3 The constituencies have not been altered since 1869, when Germany 
was still mainly agricultural. Hence the Social Democrats, whose strength 
lies in the new great towns, are under-represented. In 1898 each of the 
56 Socialists elected was returned on an average poll of 37,626 votes, each 
of the no Clericals by 13,228, each of the 54 Conservatives by 15,911, and 
each of the 47 National Liberals by 20,666. 

* In 1877 they polled 493,288 votes j in 1881 (under the first pressure of 



INTRODUCTION, 1903 xxiii 

are indications, therefore, of the power which they ought to 
have rather than of any power which they have got. The 
Social Democrats are in the position of seeing their immense 
hold on the masses of the people officially recorded every five 
years ; they have in the Reichstag a public platform, on which 
they can criticize and expose the governing class with all the 
great ability which many of them possess; but they cannot 
legislate or administrate an iota. The position is very bad for 
them, the barren irritations of a standing injustice being sub- 
stituted indefinitely for the' fruitful if sobering effects of govern- 
mental experience. German superior intelligence, and in 
particular the German workman's exceptional readiness to 
think things out, has preserved their political sanity ; but it is 
idle to expect from them the Protean constructive genius 
called forth in Socialism by democratic opportunities. Closely 
allied to them is the Austrian party. 1 In the industrial dis- 
tricts, especially in Bohemia, it is numerically Austria, 
strong, although no such record of its numbers is 
available as is afforded in Germany by the Reichstag elections. 
Its leaders show favourably among Austrian party politicians, 
and have displayed skill in dealing with the Austrian race 
difficulty. As theorists they have been helped by distinguished 
University professors ; one need only name in this connection 
SchafBe and Anton Menger. Thirdly must be considered 
Russian Socialism. Its growth in Russia has, of Russla 
course, been wholly underground, and it is driven 
to be violent and non-constructive. Its party organizations 
are much divided, and have still to fight for political freedom 
before Socialism. Its chief doctrinal influence is that exerted 
by Russian exiles in Western Europe. These have included 
a surprising number of able men ; but their ideas, conceived 
with reference to a despotic and agrarian environment, are not 

the Anti-Socialist Law) 311,961 ; in 1890 (the year of its repeal) 1,497,298 ; 
in 1898 this rose to 2,107,076 ; and in 1903, to 3,008,000. 

1 There is a separate party in Hungary, of long standing, but restricted 
by the small scale of urban industry. 



xxiv INTRODUCTION, 1903 

always of service to industrial democracies. Lastly, we must 
Spain no * e Spain? the one country where Socialism seems 

eclipsed by Anarchism among working men. It 
would seem that an utterly corrupt Government blights Socialism 
more than an utterly despotic one, because it discourages all 
faith in political activity. Among middle-class parties, how- 
ever, the Spanish Republicans go far in the Socialistic 
direction. 

Coming to the three States Belgium, Holland, and 
Sweden which we classed as " mixed," we find Socialism in 
each with a strong hold on the urban proletariate, but held 
back by favoured rural voters. Far the most remarkable of 
Belgium tne * r P art ^ es * s tne Belgian, owing to the scale 

of Belgian mining and manufacture, the old con- 
nection of Brussels with the International Working Men's 
Association, and the country's central situation between 
French, Germany, and English influences. Workmen of genius 
and brilliant " intellectuals," co-operators, trade-unionists, 
jurists, economists, artists, and notable authors, all work 
harmoniously in its ranks, and perhaps it is the one Socialist 
party in which "reformists" and "revolutionaries" rather 
complement than curtail each other. In Parliament, although 
the weightiest opposition party, it can as yet take no part in 
government ; but it has done a great constructive work outside 
by focussing co-operation, trade-unionism, and Socialism into 
a single movement. It tries to fight the worker's battle all 
round as consumer, producer, and citizen ; its methods are 
not unique, but their co-ordination is, and the effort at popular 
training and culture which goes with them. In matters of 
theory the Belgians have particularly pioneered the agrarian 
question. They formulated an agrarian programme as long 
ago as 1893, whereas neither the Germans nor the French 
have yet done so. 

Of the Continental situation generally it may be said that 
Socialism has a party in every industrial country, which in all 
except Spain is increasing, and in most at a phenomenal rate. 



INTRODUCTION, 1903 xxv 

In the democracies it already lays a hand upon government; 
elsewhere it tends to be the backbone of the Opposition. At 
present it seems almost the only force, outside the reaction, 
which has new ideas ; the older Liberals mark time, and the 
Radicals, who are coming to stand between them and the 
Socialists, borrow their novelties from the latter. Its partisans 
are still mainly urban, and the chief force against them is that 
of a Conservatism relying on rural votes. In Roman Catholic 
countries this force is commonly organized by the clergy. 

Outside the Continent Socialism is practically confined to 
certain of the English-speaking countries. 1 These are the 
United Kingdom, the United States, and the colonies of 
Australia and New Zealand. The last have realized more 
Socialistic measures than any other States in Australia 
the world, 2 and their experiences are reacting and New 
upon European theory. Every Australian colony 
possesses a separate Labour party, but in New Zealand Labour 
has amalgamated with a very advanced sort of Radicalism to 
form a Progressive party. The Queensland Labour party is 
the only one which has been Socialist in an orthodox sense ; it 
was also until 1903 the least compromising, and has least in- 
fluenced government. The others, which all grew up out of 
defeated trade-unionism, have squeezed their Socialistic legisla- 
tion, as in France and Italy, out of non-Socialist allies. Its 
effect has been to emphasize the value and possibilities of the 
State regulation of industry as against State-ownership in the 
more obvious sense. Not only have factory and workshop 
regulations been carried much further than in Europe, but two 
quite new principles have been put into practice the State- 
enforcement of minimum wage-rates and the State-enforcement 
of industrial peace. The former was realized by the system of 
wage-boards, established in Victoria in 1896, and in South 
Australia in 1900; while both have been attained by that of 

1 There is also a party in Japan, which publishes several newspapers. 

2 The standard account of them is State Experiments in Australia and 
Nfiv Zealand, by the Hon. W. P. Reeves (London, 1902). 



xxvi INTRODUCTION, 1903 

compulsory State-arbitration in trade disputes, first devised 
in New Zealand in 1894 by the Hon. W. P. Reeves. Of these 
systems Mr. Reeves's, as amended by experience, has pre- 
vailed ; and not only does New Zealand persist in it, but New 
South Wales (1901), West Australia (1902), and the Common- 
wealth Government have paid it the compliment of imitation. 

In the United States Socialism is, perhaps, less forward than 
in any other democratic country. This seems due to the 
The United extremely individualist tradition, descended with 
States. t ne Constitution from the founders of the Republic, 
and also to the corruption of politics, for which that tra- 
dition may be partly responsible. 1 A Socialist vote is, how- 
ever, growing in many centres, quickened by dislike of the 
Trusts ; and outside it stretches a penumbra of semi-Socialist 
conviction, which first won recognition at the St. Louis Con- 
vention of the Democratic party in 1896. Already some of the 
most widely read journals find it worth their while to exploit 
the tendency. The high education of the American people, 
their liability to epidemics of thought, the extreme concentra- 
tion of their industry and inequality of their wealth-production, 
all favour the possibility of Socialism coming to them in a flood. 2 

There remains the Socialism of the United Kingdom. 
How much is there of it? A superficial observer might say 
The United none. Certainly there are few constituencies 
Kingdom. which will elect to p ar ii am ent a "Socialist" 
candidate, and it may be doubted whether fifty thousand 
electors call themselves "Socialists" in politics. Others, 
again, looking at our old and far-advanced factory laws, the 
strength of our trade-unions, the numbers of our co-operators, 
the progress of our municipalities towards the appropriation 

1 Per contra, it seems that a policy of municipalization has tended to 
purify municipal politics; Chicago and New York are both instances. 

2 In 1900, at the Presidential Election, about 130,000 votes were cast 
for the Socialist candidates. In that of 1904 some 441,000 Socialist votes 
were cast. This, although through the absence of second ballot, every 
vote given for a Socialist is in a sense thrown away. 



INTRODUCTION, 1903 xxvii 

of public services, towards direct employment, and even (by 
wage clauses in public contracts) towards the fixing of a 
standard of life, say that without knowing it we are among 
the most Socialistic nations. So far as what we have achieved 
goes, this is probably true, or was till a few years ago; 
but as regards what we are, and what we are likely to 
achieve further, more doubt may be felt. All the develop- 
ments mentioned dovetail into the Socialistic idea, and nearly 
all have grown from Socialist seed. But it is precisely the 
inner spiritual bond betw6en them now lacking which is 
Socialism, and without a re-birth of which no Socialist can feel 
confidence in their future. 

The reader of this volume will not require here a long 
account of Socialistic theory. Summarily we may describe it 
as the doctrine, that whereas the means of pro- Socialistic 
duction (capital, with land and raw materials) are theory> - 
as indispensable to every man's existence as his own body, 
society should secure for all its members an equally free 
access to them, by disallowing private property in them (just 
as it has secured for all the equally free disposition of their 
bodies, by disallowing slavery). Private property, as it exists, 
exists solely in virtue of social action, and the motive for 
that action is social utility. Its aim is to secure for the 
producer the means of production, so that he who will work 
may work out his own salvation. Socialists believe this aim to 
be unrealized by it, owing to the tendency of capital to con- 
centration. 1 This tendency divides society into two classes 
a diminishing class who have capital and can work on their 

1 This tendency, or law, which seems valid for all industry except pos- 
sibly farming, is that in adding capitals 2 + 2 do not = 4, but 4 + *> the 
x representing a special advantage of concentration. Thus 200 capital 
will enable a man to do more than twice as much as ^100 would, or 
,200,000 more than twice as much as jioo,ooo. x will not always be 
realized, but will always tend to be. Its value was enormously raised by 
the Industrial Revolution, and seems to be still rising. It operates inside 
society as a continual handicap, increasing the amounts of capital owned, 
and diminishing the relative number of owners. 



xxviii INTRODUCTION, 1903 

own account, and an increasing class who have not, but must 
sell their services tc capitalists " and " proletarians." If the 
right of private property in capital is secured in its absolute 
form (the form taught to Europe by Roman law), the prole- 
tarians are absolutely at the capitalists' mercy. They must 
work for the capitalists, for otherwise they cannot work at all, 
and would starve. The capitalists can make them do what 
work they please, under what conditions they please, and need 
only give even a subsistence wage so far as they fear a shortage 
of labour. 

Socialism then asserts, that unless the capitalists' right of 
property is limited, the proletarian's degradation will be un- 
limited. Even Roman law, when it forbade the creditor to 
enslave his debtor, acknowledged that the State must fix some 
minimum, below which the capitalist cannot bargain for the 
proletarian to go. When Socialism advocates, e.g., a com- 
pulsory eight hours' day, it proceeds on exactly parallel lines ; 
a capitalist shall not force a proletarian to work nine hours, 
any more than he can force him to become a slave. Broadly 
this process may be termed the " expropriation " of capital. 
The employers have been quite logical in protesting that " a 
man can do what he likes with his own." As soon as the 
State says, " You shall not do this or that with your capital," 
expropriation has begun. 

We should note here, though, that expropriation may take 
one of two forms the State may abolish the owner, or it may 
abolish ownership. It does the former, whenever a railway 
system is nationalized or a tramway system is municipalized. 
It does the latter, partially, when it regulates the hours or 
conditions of labour, and more completely, when (as by com- 
pulsory arbitration) it fixes labour's wage. The two methods 
sometimes compete. Land nationalization illustrates the 
former, the State becomes landlord ; while a policy of land 
registry combines with a heavy progressive land-tax, restraints 
on leasing, prohibition of mortgages, and regulation of landed 



INTRODUCTION, 1903 xxix 

inheritance, illustrates the latter, the State abolishes land- 
lordism. Doubts will arise as to which method is the best in 
particular cases; but as a rule the former only protects the 
proletarian as consumer, and the latter only as producer. 
Each, therefore, needs to be supplemented by the other. A 
State railway may benefit the consuming community in any 
case ; but it only benefits railwaymen if it adopts a good 
standard wage policy (which, eg., the Prussian State Railways 
do not). A standard wage system benefits proletarian pro- 
ducers in any case; but 'they can only realize its value in 
consumption, if the State protects them against monopolies 
by intelligently nationalizing and municipalizing them. 

The moral claim from which Socialism starts is that for 
equality of opportunity. This may be made clearer by a 
single illustration. Elementary education in England is 
Socialistic ; secondary is not. Observe that neither is possible 
without capital that is, proletarian children (say 90 per cent, 
of those reared) must in default of State action or charity go 
without education. The State has stepped in, and has said 
to every proletarian child : " You shall have elementary 
education ; you shall have at least the ' three R's ' to help you 
in working and in bargaining for the means to work." Social- 
ism demands 1 an identical policy for further education. It 
asks that every child shall have an equal chance of it, and that 
his capacity shall decide how far he shall go. But under a 
strict operation of private property the proletarian children must 
have no chance at all, and the amount of education which each 
gets be proportioned not to his own capacity so much as to his 
father's capital. 

It is worth while in this place to give a brief glance at the 
historical development of Socialism prior to that contained in 
this volume. Modern Socialism originated about Genesis of 
a century ago in the disillusionments following Socialism, 
the industrial revolution, which emanated from England, 
and the political revolution, which emanated from France. 
1 Cf. all the programmes. 



xxx INTRODUCTION, 1903 

The " great industry " and the whole cornucopia of machinery 
suddenly increased wealth and poverty side by side in a 
very puzzling fashion. There is no need to recapitulate here 
the horrors of 1800-1850; how with the introduction of 
" labour-saving " machinery, men, women, and small children 
were worked to death, or how the textile operatives who pro- 
duced a hundred times as much as the hand-loom weavers } 
suffered hardship where the latter had enjoyed comfort. 1 A 
parallel puzzle sprang out of the political revolution. This 
was not so much the collapse of constitutional card-castles as 
the failure of egalitt of the abolition of privilege. Privilege 
of wealth replaced privilege of birth, through the law of 
property ; and through the law of inheritance restored it. 

The medley of schools and parties and interested classes 
who tried to answer these two puzzles may be divided into two 
main groups those who saw the good in the two revolutions 
and wanted them carried further ; and those who saw the evil 
and wanted them put back. The peculiarity of the Socialists 
was that they saw both the good and the evil, and could not 
therefore go whole-heartedly with either party. Tories of the 
type illustrated in England by Southey or Lord Shaftesbury 
were in sympathy with the Socialist policy of regulating the 
factories. Radicals of the Utilitarian school were in sympathy 
with their extreme democracy and with the faith which nearly 
all Socialists have always had in the economic soundness 
of the new methods of industry. But the Tories could not 
accept what might have won the Radicals ; and the Radicals 
could not accept what might have won the Tories. Hence 
while the Socialists got some help from both parties, they were 
generally viewed as Ishmaels by both a curious fate for men 
so incurably benevolent as their founders, Owen and St 
Simon. 

1 That the hardship became starvation was referred by its sufferers to 
taxation, Protection, and particularly the Corn Laws. The same sufferers 
remained unanimous that their diagnosis had been correct after its remedy, 
Free Trade, was applied. 



INTRODUCTION, 1903 xxxi 

The effect of their finding themselves thus awkwardly 
outside the political pale was that the early Utopian 
Socialists became Utopians. They were not Socialism, 
"unpractical" men in quite the ordinary sense; Owen, 
for instance, was the largest manufacturer of his time. But 
in the existing party situation they almost despaired of 
capturing, except for special objects, the State machinery ; and 
easily fell into the error of thinking that they could act for 
themselves. Their most obvious resource was to form co- 
operative units of producers. Owen knew that, though cotton 
operatives were paid very badly, cotton mills paid very well. 
Why not work a mill by an association of men, who should 
agree to share gains pretty equally, instead of making one man 
a millionaire and the rest paupers? Better still, why not 
form a settlement of many such associations working at 
different industries and exchanging the products in propor- 
tions measured by the labour-time spent on each? This 
solution, in different forms, haunted Socialists for long. Some- 
times the idea was to set up the co-operators in new lands as 
fresh nations, sometimes to plant them in existing societies 
which they should be in, but not of. Owen himself tried both 
experiments. The constructive idea of Fourier his " phalan- 
steres" has the same root. Louis Blanc, noting that though 
workmen might agree to do without an employer they could 
not do without capital, proposed that the State should loan 
them capital. This proposal (revived by Lassalle, in 1862-64) 
shows Utopianism forced back, in spite of itself, upon 
politics. 1 The least Utopian of early Socialists was, in some 
respects, St. Simon. The importance of studying in history 
the action of classes, the notion of changing the State itself 
from a police State to a director of industry, and the idea of 
Internationalism, are all to be found in his writing ; and if he 

1 It is the Utopianism of co-operation which has endeared it to the 
"Christian Socialists" of different countries, who otherwise have very few 
points in common. Their leaders have welcomed it as a way of improving 
society without disturbing politics. 



xxxii INTRODUCTION, 1903 

did not found a party, he tried to found a church. Owens' 
activity was, by contrast, fertile rather in its by-products. At 
New Lanark he showed what a factory and a factory village 
could be like. And he was the father of factory legislation as 
well as of co-operation and trade-union federation. With the 
passing of the first Factory Acts Socialism began to be 
realized. As Marx said later, "The Ten Hours Bill was 
not merely a great practical success; it was the victory of 
a principle." x 

The interest of the Utopians is now academic, and nothing 
further will be found of them in this volume but an -extract 
from Bebel's Charles Fourier ', indicating the differences 
Marx and between their Socialism and that of modern poli- 
Lassaiie; ticians. The authors of the newer standpoint 
making were Karl Marx (with Engels) and Lassalle; 
influence. through whose medium, rather than at first hand, 
whatever now survives of their predecessors' influence, survives. 
Their ideas made an epoch, because with them two decisive 
qualities first came to the front in Socialism the scientific 
and the political. The change may be in large measure 
traced to Hegel, from whom both Marx and Lassalle learned 
the evolutionary view of history and the organic view of 
society. Both were men of great learning, by whom the 
immense work done by economists, historians, and jurists in 
the first half of the nineteenth century was appreciated and 
utilized. Both also were, though with differences, born 
agitators. With " the white steel of science " 2 they set 
themselves to seek the naturnothwendig what by the natural 
laws of social development must be 3 and to design a policy 

1 The dictum has been taken by Bernstein as a motto for his Die 
Voraussetzungen des Sozialismus. 

2 Cp. infra, p. 45. 

* Both were Jews (like Ricardo), and have been reproached with 
" Semitic logic " Marx the oftener, Lassalle the more justly. Marx's race, 
perhaps, comes out in the habit of expression, by which he continually 
presents concrete for abstract, fact for tendency, symbol for thing 
symbolized a mere vividness of thought easily mistaken for crudity. Cp. 






INTRODUCTION, 1903 ixxiii 

as a modern engineer designs a breakwater, so that the 
currents it breaks actually strengthen it by their pressure. 
And with the agitator's political instinct they set themselves to 
build a new party, by bringing into the political arena as a new 
conscious element the proletarian class. 

Socialism took several decades to come round to the 
Lassalle-Marxian point of view, but for most European 
countries the process was completed in the 'eighties. Since 
then its internal history has been that of a bifurca- Revolu- 
tion in each country into two schools. The one ^nS^Re- 
is called " Revolutionary" or " Marxist," the other formist" 
Possibilist," " Opportunist," " Revisionist," Socialism. 
" Fabian," " Ministerial," " Reformist," the last term being 
the most exact and comprehensive. Non-Socialists like to 
emphasize the difference between them, but seldom under- 
stand its bearings. "Revolutionary Socialism," one sees 
newspapers say, "is becoming a party of peaceful reform." 
The revolutionaries are supposed to be non-Parliamentary, to 
wish to replace the methods of democratic constitutionalism 
by some dimly conceived method of violence ; the reformists, 
on the other hand, are said to be really mere Liberals, men 
who have found Socialism worthless, and gone back on it 
without having the courage to say so. Neither of these views 
will survive an examination of the facts ; the difference 
between the two schools, although profoundly interesting, is 
not so bald and elementary. 

In the first place, the revolutionary Marxists are a constitu- 
tional and Parliamentary party. The gospel of violence was 
not Marx's but Blanqui's; and though Marx played with it, 
notably at the time of the Communist Manifesto, it is one of 
his great merits that he saw the indispensableness of consti- 
tutionalism to democracy and to a constructive revolution. 
Lassalle's splendid suffrage-agitation in Germany drove home 

for a striking corroboration of this as a Semitic trait, Renan, Vie de Jesus, 
c. xviii. (e.g. "des habitudes de style dont le caractere essentiel est de 
preter a la metaphore, ou pour mieux dire a 1'idee, une pleine realite "). 

C 



xxxiv INTRODUCTION, 1903 

the idea, and after the tragedy of the Paris Commune in 1871, 
the notion of promoting Socialism by violence yielded every- 
where to that of capturing constitutional machinery except in 
countries like Russia, where no such machinery exists. Between 
Kautsky and Bernstein, Guesde and Millerand, Ferri and 
Turati, Mr. Hyndman and Mr. Sidney Webb, there is no 
essential dispute as to the expediency of Socialists entering 
Parliaments or other popularly elected bodies. Nothing is 
more typical of the Marxist leaders in Germany than the almost 
sacred importance which they teach the workers to attach to the 
vote, and the tenacity with which they defend such Parliamen- 
tary privileges as belong to the German Reichstag. The only 
non-Parliamentary political method which survives is that of 
the general strike. But its adoption has been practically con- 
fined to countries where an undemocratic franchise or system 
of constituencies renders the capture of elected bodies impracti- 
cable, and in nearly all cases it has been adopted on purpose 
to remove these restrictions, i.e. to render itself superfluous for 
the future. 1 The only country with a democratic machinery, 
where further importance is attached to it, is France ; this is 
perhaps because the memory of Napoleonic plebiscites still 
weakens French confidence in the ballot-box. 

In the second place, the reformists have not abandoned 
Socialism. They have not come round to laisser-faire^ because 
their campaign against it has been worked out more in detail. 
In principle they remain very close to Marx how close may 
be seen in this volume, if Mr. and Mrs. Webb's preface of 

1 Its most successful employment was in Belgium in 1893, when it 
secured the abolition of a narrow property franchise, and enabled thirty 
Socialists to be at once elected to a Chamber which previously contained 
none. In 1902 the Belgian Socialists again employed it in the cause of 
franchise reform, but failed ; an almost contemporary effort in Sweden was 
rather more successful. On these latter occasions the orthodox organs of 
German Social Democracy expressed themselves as very doubtful of the 
method. The general strike in Holland in 1903, in which the Socialists 
played a leading part, would scarcely have occurred had the Dutch 
Parliament been representative. But see supra, pp. xiii.-xv. 



INTRODUCTION, 1903 xxxv 

1902, or M. Millerand's St. Mande speech, be compared with 
Liebknecht's Marxian speech at the Erfurt Congress. Their 
innovation is primarily in tactics, though it reacts intricately 
upon theory. A party, whose programme comprises more than 
one reform, may be impressed either with the value of doing 
the many things simultaneously as a system, 1 so that by con- 
currence they help each other's operation, or with that of doing 
them successively piecemeal, so that each paves the way for 
the other. Marxism, with its love of system, takes the former 
view ; the reformists take the latter. Again, as we have seen, 
Socialism is essentially an appeal on behalf of the interests 
of one class, the proletarians, against what the other, the 
capitalists, conceive to be theirs. Socialists can either 
emphasize this contrast, the Class-War, and rely wholly on 
conscious proletarian support, or they can take the line rather 
of reconciling the opposition in a higher unity, the Solidarity 
of Classes, pleading with the capitalists that they have miscon- 
ceived their interest and that the true interest of all the com- 
munity is that of the workers. Obviously the Class-War is 
adapted for leading up to the simultaneous method, and the 
Solidarity of Classes for carrying out the successive. As 
between the methods, each has pretty evident pitfalls. The 
revolutionary may lead to a sterile propaganda of hate; the 
reformist may dissipate itself in demoralizing compromises, 
and find all its adherents either bought off or disgusted seriatim. 
But as between the ideas, much can be pleaded for each. 
English tradition, of course, is utterly in favour of successive- 
ness. But the simultaneous idea has a growing importance, 
the more complicated society becomes, and the more im- 
possible it is to disturb one part without creating a need for 
rectification in another. The greatest historical achievements 
of English successiveness occurred at simpler stages of society 
than to-day's. 






1 This does not of course mean in a single " catastrophic" day or by a 
stroke of the pen, but it does mean by a Socialist Government which has 
definitely attained power and can handle its programme as a whole. 



xxxvi INTRODUCTION, 1903 

It seemed desirable in this volume to give excerpts from 
one of the many general discussions between revolutionaries and 
reformists, which have occurred in the great European parties. 
For this purpose the Millerand debate at the Bordeaux Con- 
gress of the French Socialist party has been chosen. The 
Hepp alternative would have been a Bernstein debate of 

Bernstein. t ^ e German party. But for several reasons Bern- 
steinism has been kept out of this volume. In the first place, 
Herr Bernstein, though a brilliant thinker, is not a brilliant 
politician, and has hardly any " following " in the strict sense. 1 
Secondly, his gospel is cast in the form, largely, of a criticism 
upon Marxian details, which few English readers could appre- 
ciate. Thirdly, most of its ideas are imported and adapted from 
those of foreign democracies, by turning to which we can get 
them more at first hand. The Bordeaux debates are pervaded 
by a thoroughly French genius for seizing the essential; and 

throw, too, into valuable prominence the particular 
M. Jaures. . . /* T v TT i 11 j 

position of M. Jaures. He, though classed as a 

reformist, is really a synthetizer, trying to combine adroitly the 
best of both schools. With accepting a solidarity of classes, he 
insists that the operation of a conscious organized proletarian 
class is indispensable in politics. While pursuing reforms step 
by step, he insists that the steps shall always be presented to 
the electorate as part of a staircase. While defending alliances 
with other parties, he has always insisted that the Socialist 
party must remain a separate one. In these respects his 
method differs from that of many kindred English progressives 
more fundamentally than they are always aware. And it has 
been more successful. 3 



1 Those leaders of the German party, such as Von Vollmar and Auer, 
who, in greater or less degree, sympathize with him, are not disciples. The 
germs of all Von Vollmar's reformism may be found in his own speeches 
before Bernsteinism appeared. Bernstein may have fortified them by some 
arguments, but he has weakened them by his lack of the tactical sense. 

8 At present the achievement and prospects of Socialism in France are 
probably the best in Europe j and this, although the episode of the Commune 



INTRODUCTION, 1903 xxxvii 

We will outline the theoretical differences between the two 
schools, by comparing their attitudes towards the chief issues 
Nationalism (with whose aggressive aspect we may often 
identify Imperialism), Clericalism, Protectionism, and Agra- 
rianism opposed to Socialism, and towards its principal ally, 
Trade-Unionism. 

Marxian Socialism was in its genesis international, non- 
religious, Free Trade, and urban. Its attitude towards national 
and religious differences was purely negative; they were to 
be ignored, lest they should divert attention from the all- 
important issue between capitalists and proletarians 
as such. The Internationalism resulting from this and inter- 
has often taken practical and very noble forms ; it national- 
is sufficient to recall the protest of Liebknecht 
and Bebel against Bismarck's annexation of Alsace-Lorraine. 
Outside the Socialist ranks Nationalism in one form and 
another has meantime been growing, being evidenced particu- 
larly by an unexampled increase in all national armaments 
and an unexpected persistence of the militarist spirit. Against 
armaments and against militarism the protest of the revolu- 
tionary Socialists has everywhere been of the most strenuous. 
It is in general echoed by the reformists, but with less 
assurance. The concrete spirit of reformism, which is careful 
of national peculiarities in its domestic politics, cannot over- 
look them wholly in foreign affairs. Moreover, its insistence 
on the Solidarity of Classes and the all-round interests of a 

in 1871 almost annihilated it, and it has revived in face of an opposition 
from laisser-faire theorists and from Roman Catholics to which none in 
England is comparable. In the latter country a whole-hearted devotion to 
opportunism and piecemeal reform has, since 1895, been virtually fruitless. 
Reference, e.g., to the programme for the London County Council 
formulated by the Fabian Society in 1895, shows that not one of the more 
important of its nineteen desiderata have been secured, and many of the 
most important have been decisively negatived. The majority of the 
Council itself would at any time have endorsed them almost en bloc ; but 
the omission to educate the electorate into a systematic view made it easy 
for Parliament, including the London members, to ignore them. 



xxxviii INTRODUCTION, 1903 

community tends to substitute a national corollary for the 
international one of the Class-War. Thus in Germany Herr 
Bernstein has reminded the extreme anti-militarists, that 
national Germany is the vessel of a certain culture, which some 
of her military rivals (e.g. the Slavs) do really threaten. An 
analogous course has been taken in France by M. Millerand. 
The furthest instance of this tendency was the argument of a 
few leading English Fabians who supported the South African 
War. They urged that Imperialism and Internationalism were 
really the same, since both deprecated the separatism of small 
nations. This was not unlike arguing that theft and voluntary 
communism are the same, since both operate against private 
property. Plainly such arguments only appreciate the negative 
sides of Imperialism or of theft, and ignore the animus of the 
agent. Nor does Imperialism become less Nationalist by 
being pleaded as promoting Civilization. The essence of 
Nationalism is that the members of each nation believe their 
national civilization to be Civilization. Perhaps the sanest and 
most central line on this, as on many other questions, has been 
that inspired by M. Jaures. He has not ceased to profess a 
warm French patriotism, while putting extreme pressure on 
the French Government in the directions of international equity 
and European disarmament. 

A slighter divergence has occurred on the Clerical question. 
The orthodox Socialist policy, that religion is a purely private 
Socialism concern, is much strained by the anti-Socialist 
andcieri- activity of the clergy in many, chiefly Roman 
Catholic, countries. It lets the Socialist insist on 
secularizing education and stopping the State-salary which 
many States give in one form or another to their clergy; 
but it forbids him to attack this or that religion as such. 
It has tactical as well as theoretic advantages, and its 
more rigid observance by German Socialists in recent 
years has won for them at last a considerable number of 
Roman Catholic voters. Whether the French Socialist party 
has violated it by backing M. Combes must be matter of 



INTRODUCTION, 1903 xxxix 

opinion. The stiffer Marxians incline to think that they 
have. 1 

The attitude of Socialism to Protection has not been fully 
theorized. The main argument of the classical economists 
against it the economic waste and inefficiency socialism 
which it involves is one which disciples of Marx & nd Pr * 
or Lassalle should, logically, appreciate, though it tec1 
is uncertain how many have taken the trouble to do so. 
European Socialists are Free Traders largely for obsolescent 
reasons. One is the historical influence of the English Anti- 
Corn Law agitation, which for many generations of agitators 
remained the model of a successful popular movement. 2 
Another is the fact that Socialism, like Liberalism, sprang 
from the towns, while the kernel of European Protection 
has always been agrarian. A third, very powerful abroad, 
has been the extreme theory of class war. If it overrides all 
other wars, if the employing and employed classes can have 
no solidarity of interest against foreigners, no argument for 
Protection is possible. Reformist Socialism, with its note 
of the solidarity of classes and " national interests," may be 
expected to compromise on Free Trade as it does over 
Internationalism. 

On the other hand, practical Socialism at the Antipodes 
is fiercely Protectionist. Local circumstances partly explain 
this ; but there are also some general affinities between Socialism 
and Protection, as between laisser-faire and Free Trade. Both 
the latter tend to take the standpoint of the individual con- 
sumer, and ask for what is cheap to him. For Socialism the 
consumer is the whole community, in whose life the lives of pro- 
ducers as such are a great factor ; and in measuring cheapness 

1 An important symposium on the whole subject appeared in 1903 in 
Le Mouvement Socialiste, much of it being afterwards Englished in the 
Social Democrat. The course of events since has gone far (1906) towards 
silencing the Marxian protests. 

- As such it dazzled Lassalle (cf. infra, p. 46), while upon Marx its 
impression was deepened by his residence in England. 



xl INTRODUCTION, 1903 

it takes account of the conditions of production. These 
might in various ways turn its scale. It might be biassed 
towards maintaining particular industries, e.g. agriculture, which 
benefit national health and physique. It might object to seeing 
industries, where it has established good wages and conditions 
of work, undercut by foreign competitors, who reap the in- 
dividual advantage of neglecting such things. Lastly, it might 
object generally to the fluctuations of and changes in industries, 
which Free Trade and its correlative, the world-market, might 
be supposed to increase. The last point is one in which a 
very characteristic opposition between the Socialists and the 
laisser-fairf school is involved. The latter have not always 
recognized, that while in the abstract capital and labour are 
infinitely plastic, in the concrete form of specialized machinery 
and trained workers they are painfully the reverse. The 
struggle for existence between industries is one aspect of the 
larger struggle, which the laisser-faire school accepts as evolu- 
tionary, but whose terrible cost leads the Socialists to ask, how 
far the results justify the process. 

Very few European Socialists have faced these difficulties. 
They see that under present conditions the money advantages 
of Protection, for which all pay, go mainly into the pockets of 
the very few, as landlords or employers. This settles their 
policy satisfactorily for present purposes. But where a Socialist 
system of State-owned land and State-controlled industry 
comes in, fresh thinking will be needed. Almost the only 
Socialists prior, at least, to the present English controversy 
who have broken this further ground are Mr. and Mrs. Sidney 
Webb. But their remarkable defence of Free Trade, which 
will be found in this volume, is confined to the problem of 
maintaining a standard of life, and does not go into that of 
minimizing industrial dislocation. 

Still, it would be a mistake to suppose that industrial dislo- 
cation has not seriously engaged Socialist attention. Marxists 
may feel a sort of triumph in seeing crises of unemployment 
testify, as they think, to the failure of Individualism ; yet they 



INTRODUCTION, 1903 xli 

have to do their best for the unemployed. And in Germany, 
where latterly the crises have been worst, scarcely any Socialists 
have been tempted to seek their remedy in Protection. On 
the contrary, the Social Democratic party has been the strongest 
champion of the cheap loaf. They see that the Protective 
tariff in raising prices has not equalized employment. On 
the contrary, it seems, as in the German steel and iron indus- 
tries, to have accentuated the crises, by encouraging a specu- 
lative manufacture for export. So far as regards the industrial 
equilibrium, a high and' rising protective tariff has been 
accompanied by greater instability than ever. In the face of 
these stubborn historical facts the German Social Democrats 
have maintained as their programme, " abolition of all indirect 
taxes, customs, and other politico-economic measures which 
sacrifice the interests of the whole community to the interests 
of a favoured minority." 

The nearest approach to a volte-face which Socialists have 
attempted since Marx has been in relation to Agrarianism. 
We have noted how largely the resistance to socialism 
Socialism on the Continent depends, electorally andAgrari- 
speaking, on the peasants. Marx thought that 
the advantage of concentrating capital would be felt in agri- 
culture as in other industries ; but in spite of a temporary 
confirmation of this view by the mammoth farms which 
sprang up in Western America, it now appears very doubtful. 
Figures for or against the persistence of peasantry are con- 
flicting but at any rate great numbers of peasants remain, 
Two questions have been intertangled that of owning land on 
a small scale and that of cultivating it on a small scale. Per- 
haps the matter of owning has been exaggerated by Socialists ; 
for where there are freely alienable peasant plots, economic 
rent may be largely neutralized through the land being 
divided, not into units of area with differing values, but into 
units of value with differing areas. Unless, therefore, accumu- 
lation and private landlordism come in, State-landlordism seems 
no advantage. Cultivation, again, does seem to follow laws 



xlii INTRODUCTION, 1903 

other than those of manufacturing industry, which lessen the 
possibility of ordering things to be done by rote, and enhance the 
value of individual attention and skill. 1 Recognition of this 
has led reformists to substitute a policy of actively assisting the 
peasants for the orthodox policy of leaving them to succumb 
to capitalism. Their formula is : " Collectivize credit, transport, 
exchange, and all subsidiary manufacture, but individualize 
culture." What reinforces the last clause from another side 
is the enormous difficulty of regulating employment in culture. 
A regular eight-hours' day for cultivators in Europe scarcely 
seems practicable ; and effective inspection would be very 
hard. The " self-employment " of the peasant might help to 
solve this. 

The policy of championing the peasant has important 
champions in France and Germany, though not the acknow- 
ledged party policy in either. 2 The lines which it would 
follow have been largely indicated by practice in Denmark, 
and in certain British colonies. In England it hardly seems 
to have been heard of, and English Socialists, who are almost 
exclusively urban, continue to view Irish land-purchase or 
English small-holdings schemes with suspicion. Over against 
it the more orthodox Socialist view still develops with great 
vitality ; its most brilliant, up-to-date, and elastic exponent is, 
perhaps, the Belgian leader, M. Vandervelde. 

Most typical of the difference between revolutionaries and 
reformists is their attitude to trade-unions. The Marxian view 
came out well at the German party's Cologne Congress in 
1893, and may be read in a speech made by Liebknecht on 
its morrow at Bielefeld. It recognizes their achievement ; 

1 Manufacture is making things ; agriculture is watching and tending 
things (plants and animals) which make themselves. The latter must 
deal constantly with the unpredictable variations of organic growth and 
the natural influences (weather, etc.) which react on it. 

2 In Germany it was first brought to the front by Herr von Vollmar ; 
for its subsequent history cp. infra, pp. 219-227. The French advocacy 
of it may be well seen in some remarkable articles by G. Sorel, Revue 
Socialiste, March and April, 1901. 



INTRODUCTION, 1903 xliii 

Liebknecht in the speech cited extolled the English coal- 
strike then in progress, and not only brought out the militant 
advantages of combining German political, and English trade- 
unionist organization, but showed himself partly socialism 
conscious that trade-unionism might not be super- and trade- 
seded by Socialism even when victorious. 1 But it unlonlsm - 
feels that trade-unions, as they exist, often supplant and delay 
Socialism, and it only trusts them under reserves. Whereas 
reformist Socialism thinks them stepping-stones, and is all for 
them. It has theorized tlleir function in Socialist society with 
more care than the Marxians. 2 What it does not fully see, 
or at least fully acknowledge, is that while the trade-union 
which it desiderates is not the trade-union which in Europe 
exists, the gulf between them can only be bridged by a 
revolutionary alteration 3 of the very ideals which the existing 
trade-union most strongly fosters. 

England is the classical land of trade- unions, and the 
absence of a working-class Socialism in it may be attributed 
more to the course followed by them than to any other single 
fact. They consolidated their power over the English working- 
class in the middle third of the last century. At that time 
they were non-political in the sense of having no preference as 
between Tory landlords and Liberal capitalists ; but in much 
they were political bodies. The Socialists on their side were 
willing that trade-unionism should develop rather as a State 
within the State than as a party within it. Germans, whose 
existing undemocratic States seemed incapable of being ever 
fitted for Socialist uses, hoped that the new working-class 

1 By no means all revolutionary Socialists have yet advanced thus far. 
For a much narrower view of trade-unions see Ferri, Associazioni operate 
2 Socialismo (Rome, 1902). But see sufra, p. xiv. 

2 The works of capital importance are Mr. and Mrs. Sidney Webb's 
History of Trade Unionism and Industrial Democracy. The last chapter 
of the latter embodies perhaps the last point yet reached in speculation. 

8 In Australasia sensational union-smashing brought such a revolu- 
tionary alteration about, while Socialism from Europe helped to shape its 
issue. 



xliv INTRODUCTION, 1903 

organizations might supplant rather than transform. Marx 
inclined to this view at the end of the period, after a long 
experience of trade-unionism in it. 1 

But with the Trades-Union Acts of 1871 and 1875 came 
a change. England legalized private collective bargaining^ and 
the unions had not to be political to be able to exist and 
function freely. Their success now depended on their in- 
cluding all possible fellow-workmen irrespective of politics, 
and this was a motive for being non-political. Private col- 
lective bargaining grew vastly, and was developed by trade- 
unionists into a method, whereby they thought that the 
working-class could satisfy most reasonable expectations. This 
opinion, with a corresponding distrust of politics, still charac- 
terizes the English workers. Temporarily there is a breach in 
it. Legal decisions of the House of Lords in 1901 restored 
certain restrictions on private collective bargaining, which the 
trade-unionists find they cannot remove without turning poli- 
ticians. Hence the Labour Representation Committee. 2 This 
is now supported financially by over a million trade-unionists, 
and has captured several Parliamentary seats. At present it has 
no explicit common programme, except the restoration of that 
state of the law under which its trade-unionist members thought 
political action superfluous. But it will go further if they unlearn 
their complete reliance upon private collective bargaining. 

Socialists seldom apply the idea that " palliatives postpone 
Socialistic remedies " so as to belittle what the trade-unions 

criticisms have achieved. But to complacent estimates of it 
upon pri- 
vate coilec- they oppose three mam criticisms : 
live bar- / r \ ft j s inconclusive and enormously costly, 

gaining. , . , . 

All private bargaining means private economic 

warfare. That the warfare is collective gives the workman a 
chance of winning ; but it also vastly multiplies the sufferings 
occasioned. As the author of the New Zealand Arbitration 

1 Cp. his letter on the Gotha programme (written in 1875). 

2 The Committee was started before the decisions, but they admittedly 
vitalized its action. 



INTRODUCTION, 1903 xlv 

Law puts it, there are three parties to every strike or lock-out 
the masters, the men, and the general community, and there 
are always at least two losers. 1 

(2) The area of the working class benefited is very con- 
fined virtually confined to skilled male workers. ' ' 2,000,000 
men and 120,000 women are the trade-unionists of a nation, 
with perhaps 15,000,000 wage-earners. The residue do not 
lose only as part of the public during strikes. Most indus- 
tries employ both skilled and unskilled labour. The better- 
paid skilled workmen are organized, and demand advances of 
wages collectively. If they win without fighting, the improve- 
ment in their wage will tend to keep the unskilled labourers' 
down. If, however, they fight and work ceases, the unskilled 
labourers are thrown willy-nilly into an unemployment which 
they can less afford to endure, and which it is not in their 
power to terminate, on behalf of interests which are not 
theirs. ' 

(3) The area of working-class interests benefited is small. 
Non-political unionism has marshalled the skilled workers, the 
natural leaders of their class, almost solely against the em- 
ployers. It has withdrawn attention from the pre-eminent 
land question, and been a godsend to railway companies and 
other monopolists exploiting the consumer. It may have 
made Lancashire wages among the best in the world; it has 
left Lancashire towns among the worst. 

Socialism must regard these criticisms as insurmountable 
by any method short of abolishing private collective bargains. 
Criticism (2) might be got over by introducing alongside of 
trade-unionism the Victorian system of wage-boards for the 
earners of low wages. But the more thorough way is that 
pointed by New Zealand compulsory State arbitration 
between employers and employees. By this trade-unions 
would cease to be fighting bodies and become representative ; 

1 The strongest unions now avoid fighting wherever possible, and have 
learned greatly to increase such possibilities. But upon fighting they 
always rest, and their strength is their fighting capacity. 



xlvi INTRODUCTION, 1903 

rich and poor workers could all alike be organized, and the 
former would have no motive for forming unrepresentative 
knots by themselves. Sweating could be stamped out, and 
unskilled labour be paid the living wage which our social 
investigators are convinced that it does not get. The passage 
from trade-unionism to Socialism is bridged. This idea is 
heartily welcomed by the Socialist historians of trade-unionism, 
Mr. and Mrs. Sidney Webb, and in France, M. Millerand's 
tireless work for trade-unionism evidently contemplates some 
such end. Trade-unionists outside Australasia are still gene- 
rally against it, but in part for temporary reasons. The 
system's effect in transferring the "fighting" of the workers 
from trade-unionist to the political sphere is the essence of 
Socialism ; but where, as in England and America, the workers 
have strong unions and weak parties, they naturally do not 
jump at it. To overcome this hesitation should be a principal 
aim of Socialist trade-unionists; but they have not all yet 
realized it as such. 1 

The movement of the Labour Representation Committee 
is therefore still only a hope for the English Socialists ; but it 
is their main hope. All experience except in New Zealand 
(where an abnormally democratic Radicalism made an excep- 
tion more apparent than real) goes to show that a separate 
Labour party, allying but not fusing with other parties, is 
indispensable for a persistent Socialist policy. Mere "per- 
meation " of the bourgeoisie and its parties has not sufficed ; 
it seems, indeed, almost a spent force. In municipal govern- 
ment, where the governed are relatively near to the eye and 
conscience of the governing, it has achieved something; the 
wage-clauses of our municipalities are indubitable Socialism. 
Their " municipalization " only is so when done in the same 
spirit; the likelihood is great that, pursued as much of it is 

1 At the English Trade Union Congress in 1906 a resolution in favour 
of compulsory arbitration was defeated by 938,000 votes to 541,000. Its 
principal opponents were the Miners' Federation, who stand outside the 
Labour Party, But for their vote it would have been carried. 



INTRODUCTION, 1903 xlvii 

" unconsciously " by uninspired men, it may go the way of the 
British co-operative movement, and harden into a merely 
mechanical device, slightly benefiting the pockets of con- 
sumers. But all municipal Socialism is controlled by national 
government, upon which "permeation" has made little im- 
pression. It was when, on Parnell's death, the Irish question 
lapsed, that Socialism had its best chance of capturing English 
politics. It tried permeation, and for a few years almost 
fancied itself successful. But the first live interest after the 
Irish Imperialism knocked it easily out; and now that 
after eight years that is flagging, the Protectionist controversy 
has intervened, perhaps for an equal period. 

By affiliating two Socialist bodies besides its trade-unionists, 
the Labour Representation Committee has left open a way 
for non-manual workers to join it. But the great politicians, 
without whom no political movement can live, are still to 
seek. The theorists of English Socialism, though few, may 
compare with those of other nations; the English Labour 
leaders, though they do not number a Bebel or an Anseele, 
compare well with the leaders of the other English classes. 
But men like Jaures or Vandervelde, who each are first-rate 
thinkers, writers, Parliamentarians, wire-pullers, and mob- 
orators, all rolled into one, such men simply do not exist in 
English Socialism, nor indeed in English politics ; and perhaps 
they never will until members of Parliament are paid. Nor 
can Socialists look with full confidence upon the English 
electorate. It is hardly disputable that millions of electors in 
the greater British cities have reached a point of personal deca- 
dence physical, mental and moral to which no Continental 
country furnishes a parallel on any comparable scale. Time is 
steadily multiplying these millions ; and for English Socialism 
there is therefore a race against time which it is very likely not 
to win. 




MODERN SOCIALISM 



THE DIFFERENCE BETWEEN MODERN 
AND UTOPIAN SOCIALISM 

BY A. BEBEL 

This is an excerpt from Bebel's Charles Fourier (pp. 287-9). 

August Bebel was born in 1840 ; apprenticed to a wood-turner at 
fourteen ; entered politics at Leipzig 1 , and in 1864 was President of 
the Deutscher Arbeiterbildungsuerein (a Radical organization) ; in 
1865 was brought to Socialism by Liebknecht ; in 1871 protested 
with Liebknecht against the annexation of Alsace-Lorraine, whose 
neutralization he still advocates ; has, since Liebknecht's death, been 
leader of the Social Democratic party in the German Reichstag. 

ALL Socialistic experiments which are attempted inside the 
bourgeois world, and aimed naturally at the reconciliation of 
mutually exclusive opposites, must come of necessity to grief. 
While such experiments last some time, as in some small 
communistically organized communities in the United States, 
they are able to do so only through almost perfect isolation 
from the rest of the world, and only under an economic system 
which constrains their adherents to Spartan simplicity, and 
necessitates patriarchal conditions. This is not the developed 
civilization for which mankind strives. That requires a free, 
unimpeded unfolding of all men's talents and capacities, and 
a full enjoyment of all the attainments of civilization, which is 
only to be won if the means of civilization are more and more 

I B 



2 MODERN SOCIALISM 

multiplied up to the highest technical and scientific levels. A 
small isolated community, limited in its powers and means, 
cannot achieve this, be it never so artistically organized. It 
is disturbed by every foreign influence which acts on it from 
outside; and this effect will be the more present the more 
vital are the relations which the part conceives to be necessary 
towards the whole. Either it must go with the whole and 
develop with it, or it must remain isolated and ossify; there 
is no third alternative. 

In the bourgeois world men can only be conceived as 
acting in bourgeois fashion. The individual plays towards the 
whole the part of a tiny cog on a monstrous mechanism, whose 
many dozens of wheels clash with their thousands of cogs and 
little cogs in a prescribed order. The effect of the individual 
is seen in his effect on the whole, and reversely in the effect 
of the whole on individuals. Both complete and condition 
each other. Whoever strives as an individual against the 
whole, and thinks he can go his particular way; whoever 
thinks he can arbitrarily break through the social mechanism 
in which all are confined ; whoever fancies he can found his 
own particular Kingdom of Heaven, will speedily learn by 
hard facts to take another view of his own impotence and 
incapacity. Hence all Socialistic experimenting inside the 
bourgeois world, whether it proceeds from an individual who 
imagines he can produce and distribute Socialistically as a 
bourgeois entrepreneur -, or from a small aggregate who endeavour 
to do so for and among themselves, is Utopian fancy-mongering. 
Every such attempt indicates an immature spirit which can 
only have the effect of provoking disillusionments, discrediting 
the ideas among undiscerning persons, and giving the adver- 
sary the weapons he wants against the efforts of which he is 
afraid. 

The great progress of our age is, that the Utopians have 
died, or are dying, out. Among the masses they find no foot- 
hold find one less to-day than ever. Even the simplest 
workman feels that nothing can be set up artificially, that what 



A. BEBEL 3 

is to be must develop^ and must develop with and through the 
whole not separated and isolated from it. The thing is to 
clear the course for development, to remove all that is old or 
has died out, to ease the ending of what is dying out, and with 
this object to direct the search of criticism to every point at 
which evils appear. People who apply criticism must trace 
out the causes which produced evil. When the causes are 
ascertained, the remedies spontaneously follow. 




II 

MARXIAN SOCIALISM IN POLITICS 

BY W. LlEBKNECHT 

This is an extract from the speech made by Liebknecht at the 
Erfurt Congress of the German party in 1891, when moving the final 
adoption of the programme there drawn up. 

Wilhelm Liebknecht (1826-1900) was the leader of the German 
Social-Democratic party throughout the most critical period of its 
growth. Himself a Marxist, he was largely responsible for the 
union of the Marxists and Lassalleans, and their concentration upon 
a common programme at Gotha in 1875. His tactical ability in 
subsequently enabling his party to parry Bismarck's Anti-Socialist 
Law was acknowledged by Bismarck himself. Like Marx, Engels, 
and Lassalle, he belonged by birth to the bourgeoisie ; and he received 
a University education at Berlin and Marburg. 

I WILL now go into the main principles of the programme, Of 
course, you will not expect me to explain here and now every 
single point ; I must confine myself to exhibiting the thought 
of the general portion broadly and as a whole. Among the 
detailed demands I will only note what really requires notice, 
because it has been insufficiently discussed or because it varies 
from the earlier formulae. The leading thought which was 
equally apparent in all the draft-programmes submitted to the 
Congress was to indicate clearly the causes whence the 
embarrassments of contemporary society proceed to exhibit 
the process of economic development which divides the 
capitalistic world, the society of to-day, into two hostile camps, 
and to make plain the necessity of the class- war in capitalistic 

4 



VV. LtEBKNECHT 5 

society to make plain how, by the necessity of Nature, as 
long as bourgeois society exists, the system of exploitation and 
oppression must exist too. As the cause of the division of 
society into two hostile camps we had to assign the fact that 
the means of production i.e. land, raw materials, tools, 
machines, mines, and means of transport have passed from 
the possession of the community, of collective society, into 
the private possession of individuals. If we imagine a state 
of things in which the necessary means of production are in 
every individual's possession, so that every one can work 
independently of others, then there is no production of 
commodities ; every one really produces for himself; there is 
no dependence of one upon another, no exploitation and 
enslavement. Whither and how far such a state of things has 
existed, we leave commentators to say. It is only possible 
and conceivable in a form of society such that the means of 
production notably the chiefest of them, Mother Earth are 
in the possession of the real producers, the workers. As soon 
as ever private property in the means of production is started, 
there begins exploitation and the splitting of society into two 
classes whose interests make them each other's enemies. 
This process does not accomplish itself suddenly, but it in- 
cessantly goes on, and it may be traced back through the 
Middle Ages into the most hoary antiquity. In the bourgeois 
society, with which we have to concern ourselves and the 
programme is concerned, it accomplishes itself with increasing 
rapidity and momentum, according to the degree in which the 
means of work are concentrated and become the monopoly or 
property of a small minority, and according to the increased 
productivity of the means of production, which constantly 
grow more perfect. Simple tools become machines ; machines 
themselves keep on being improved; aggregates of capital, 
and with them the intensity of production, grow continuously. 
Out of the small industry develops the great industry ; out of 
that, as known to us at the beginning of wholesale capitalistic 
production, develops the modern giant industry. Even this 



6 MODERN SOCIALISM 

no longer suffices j the giant concerns coalesce into trusts, 
cartels, federations, etc. And with this concentration of 
capital, of the means of production, there increases similarly, 
on the one hand, the intensity of production, which grows 
unlimitedly, and on the other the intensity of exploitation, the 
sucking-up of the intermediate classes, the precariousness of 
the proletariate's existence, the degree of misery, of oppression, 
of enslavement. 

This historical process of the development of society and 
the laws, according to which it accomplishes itself, had to be 
set out in the programme. It had to be shown how the 
conditions of to-day originate in this separation of the workers 
from the means of production ; how with the growing con- 
centration of the means of production exploitation has grown 
and must grow ; how the root of the evil lies precisely in the 
fact that the means of production become private property; 
how from this fact exploitation naturally and necessarily results. 
For whoever has the strength to work but lacks the means 
which would enable him to exert it, to turn it to account, to 
bring it into the " economic play of forces " such a man 
cannot live ; he is inseparable from his power of work, and if 
he is not to starve he must give himself into the service of 
another who is a private owner of means of production. 
Hence arises and is developed economic dependence, economic 
exploitation, and from it political dependence and enslave- 
ment in every form a process which, as stated, goes on with 
increasing rapidity. The division of society grows ever deeper 
and more complete; what is between the capitalist and 
proletarian extremes, the so-called intermediate strata of the 
population, which still, on a small scale, own the means of 
production but must work themselves even if they also employ 
others these intermediate " strata " (to avoid the vague word 
" ranks ") disappear more and more, and the whole process 
of development of contemporary society proceeds naturally 
and necessarily, whither the essential being of that society 
drives it, to the concentration of the means of production in 



W. LIEBKNECHT 7 

a few hands, and the expropriation, the spoliation, of those 
who have not the means of production by the monopolists 
who have. Thus the whole history of bourgeois society is a 
history of expropriation expropriation made a permanent system. 
The possessor of the means of production expropriates the 
man who has none and must work for him for a wage ; he 
pays in the wage only a part of the work performed ; the 
surplus-value \ the unpaid performance, becomes in his hand 
(the hand of the possessor of the means of work) capital, and 
enables him to draw tighter and firmer the worker's chains, 
to complete his enslavement and exploitation. Thus the 
worker, as he works and creates wealth, forges the fetters of 
his own bondage. Nothing in the process can be altered by 
pious wishes. All criticisms of capitalism, which do not go 
to the core, are fruitless ; all attempts to remove the " excres- 
cences " of capitalism, while maintaining its bases, are Utopian. 
These "excrescences" are the logical results, the inevitable 
consequence of the capitalistic system ; whoever wants to 
remove them must remove it, their cause. By this demand 
the Social Democracy distinguishes itself from all other parties 
and stamps itself a revolutionary party, while all other parties, 
without exception, take their stand upon private ownership of 
the means of production. This point, because of its out- 
standing importance, we have formulated in the programme 
now submitted to you more fully and precisely than was done 
in the first draft. In the latter it was stated that all other 
parties took their stand in common upon capitalism, and, 
therefore, were collectively hostile to the working classes. 
Against this it could be urged that in Germany we have 
movements which, though politically unimportant do aim, like 
us, at clipping the wings of capitalism so far as it manifests 
itself on the large scale I mean movements like those in 
favour of guilds and corporations, or the Anti-Semitic. These 
we cannot easily designate as capitalistic, but they do, as our 
draft puts it, take their stand on private ownership of the 
means of production, and they do so in common with all 



8 MODERN SOCIALISM 

other parties. And against all parties standing there in 
common we Social Democrats close our ranks. There are 
no compacts, no compromises; between us and the army of 
our allied opponents is a great gulf, a gulf growing wider and 
deeper every day, across which the economic leap may be 
made from their side to ours, because theirs is the higher ; 
and every day and hour the pressure and logic of the economic 
development throws across into the proletariate from the 
ranks of our adversaries regiments who previously fought 
there, and thousands, yes, hundreds of thousands, are hurled 
into the abyss of misery. But this bottomless gulf is not filled 
up by their bodies ; it exists, it is the boundary separating us 
from all other parties, and every one who wants to cross it, 
who resigns himself to petty-bourgeois Utopianisms, who does 
not at every moment keep clearly before his eyes, that only 
the removal of the causes, only the abolition of private property 
in the means of production, only the abolition of the entire 
present method of producing commodities, can bring misery, 
exploitation, and enslavement to an end, who mistakenly 
believes that gradually, by way of compromise, by petty 
bourgeois salves and palliatives the evils of contemporary 
society may be so mitigated as to be at least for some time 
bearable every one who subscribes to such views deserts the 
revolutionary ground of the party. We have to consider that 
when we ask, " Are you one of us or not ? " The finest phrase 
about improving the lot of the workers profits nothing, we get 
no help thence. 

Is it of the essence of the present society and production, 
that exploitation grows ever more intense ? Can we, by the 
legislation of the State, be it never so powerful, be screwed 
back into medisevalism ? Can the great industry be sacrificed 
to the small industry, as the guild party desire? No; it is 
simply impossible. In the very simple question of the law 
for protecting workers the class-State of to-day, which must 
serve capitalism, has never had the power to free itself from 
the dominating class that same State which dreamers have 



\V. LIEBKNECHT 9 

called a " social " kingdom or empire ! Society does not 
let itself be forced back into earlier forms of production 
inferior for business purposes ; and the new forms lead 
naturally and necessarily to ever greater concentration of the 
means of production, ever greater exploitation and enslave- 
ment, ever more general proletarization of the members of 
society. Therefore the Social Democracy demands that this 
be attacked at the base, at the root, that the causes of these 
conditions be removed. Its demand is not a capricious, but 
fully conscious demand ; it has risen to that view of the world 
which conceives society as an organism whose growth and 
development are natural and necessary. It sees that con- 
temporary society has created conditions which must destroy 
it; it sees what is expressed in all our draft programmes 
that the society of to-day is driven onwards with brazen logic 
to a catastrophe, to its own " world-ruin," which is not to ba 
averted. Socialism is not an arbitrary invention. The so-called 
" State of the Future," with which we are derided and whose 
bases we can of cotfrse only indicate in general outlines, is the 
necessary, inevitable consequence of the capitalistic State of 
the Present, as Socialistic production is the necessary result 
and consequence of to-day's capitalistic production. Thus 
capitalism, while ever expanding further and piling up gigan- 
tically the means of its power, is at the same time creating the 
enemy and the powers to which it must succumb creating, as 
the Communist Manifesto says, its own grave-digger digging 
its own grave. Capitalism makes the proletariate, which it 
produces, its own heir, prepares its heritage, forges its weapons, 
enables it to realize what we are striving after, creates for it 
the material conditions for the realization of our ideal, in 
short, the Capitalistic State of the Present begets against its will 
the State of the Future. In a condition of bourgeois industry 
on the small scale, of dwarf economics, a philanthropic 
Utopianism, self-styled Socialism, was possible; but revolu- 
tionary scientific Socialism, which has grasped the laws of the 
development, and regards itself as that development's last 



io MODERN SOCIALISM 

consequence, was simply inconceivable. Socialism is the result 
of modern capitalism ; the Socialist State is the successor and 
heir of the Capitalist State. 

Therefore in our, draft-programme we have nowhere in- 
troduced a misty, airy end to be aimed at. We have stated 
what is and what is coming. We have said : Society is thus ; 
its laws are these ; we can no more alter them than the State 
of to-day can ; they lead necessarily to the Socialistic society, 
and since Socialism is a social necessity, we strive after it, 
and call on the workers to range themselves under the banner 
of the Social Democracy, and to " step into the ring " as of 
old the revolutionary peasants said into the ring of the Social 
Democratic programme. 

We have declared that the movement accomplishes itself 
on the basis of the class-war. This word, which was first im- 
ported into German from English by Marx, forms the best 
refutation of the supposition that the Marxian doctrine, 
scientific Socialism, excludes personal interference with the 
process of economic development, and favours a certain 
fatalism, an inactive expectancy. That supposition is false ; 
the exact opposite is true. It was precisely Marx who exhibited 
the whole development of bourgeois society as the result of a 
series of class-wars, which fulfil themselves in ever higher forms, 
with an ever deeper and further content, corresponding to the 
uninterrupted onward development of economic conditions. 
And the class-war is a war of living men, a real, personally 
fought, genuine war ; and no one has expressed this nature of 
the war more precisely than Marx. 

If we say we wish to abolish the class-State of to-day, we 
must also declare, to break the point off our opponents' objec- 
tions, that the Social Democracy, while it fights the class-State, 
will by abolishing the present form of production abolish the 
class-war itself. When the means of production have passed 
into the community's possession, then the proletariate is no 
longer a class, any more than the bourgeoisie; the classes 
cease; there only remains society, the society of equals 



W. LIEBKNECHT n 

genuine human society, humane humanity. Hence it has 
been, and had to be, declared most distinctly that we do not 
seek to replace one class-domination by another* Only malice 
and thoughtlessness can currently foist such a thought upon 
us, for in order to rule, in order to be able to exercise a 
domination, I must personally possess means of production 
my owning means of production is the indispensable condition 
of domination and personal, private ownership of the means 
of production is just what Socialism abolishes. Domination 
and exploitation in every ibrm are to be abolished ; men are 
to be free and equal not masters and slaves, only comrades, 
only brothers and sisters. 

Next to this general thought, we had to emphasize the 
international character of the party. Since the foundation of 
the "International" in the middle of the sixties, the inter- 
nationalism of the worker's movement has been recognized and 
practically observed by the German workers on every occasion. 
In the new programme we have expressed this thought very 
definitely on two sides : firstly, on the economic side in that 
the economic development of its own nature bears an inter- 
national character; and secondly, on the political side, 
because the international character of the economic develop- 
ment makes it impossible to solve social questions nationally 
in one land, and hence the international co-operation of the 
working-class is necessary. Further we had and in view 
of the misinterpretations and perverse conclusions to which 
certain proceedings abroad have given rise, this was doubly 
our duty to declare with special emphasis and in words which 
admit of no doubt, that we " feel and declare ourselves one 
with the class-conscious workers of all other lands." The 
international Social Democracy is for us not a phantom, not 
merely a fine phrase ; it is an end, without whose attainment 
the emancipation of the working-class cannot be accomplished. 
We are internationalists in deadly earnest. We are fully 
aware of the consequences of our declaration and the 
obligations which it lays upon us; and if we do not state 



12 MODERN SOCIALISM 

this in so many words, as the old programme did, that is 
merely because, after our present declaration that we "declare 
ourselves one with " the Social Democracy of all other lands, 
we held it superfluous, indeed weakening. What we here 
solemnly resolve will, like everything else in this programme, 
be realized in his life by every one of us, and translated into 
his acts and affairs. In the international alliance of the 
proletariate the German Social Democracy will always do its 
duty, and shrink from nothing which duty bids. 

I draw your attention, further, to the clause in the seventh 
section : " The battle of the working-class against capitalistic 
exploitation is necessarily a political battle. The working- 
class cannot carry on their economic battles and develop 
their economic organization without political rights." There 
we express the political nature of our party, and separate 
ourselves from those who preach the so-called " propaganda 
by action ; " who in reality erect inaction into a programme, 
and practise the propaganda of do-nothing with a flood of 
revolutionary phrases. We must act, must influence politics, 
must use every tool and handle at our disposal, apply every 
lever to further our work. There is much to do, and the 
more force we expend, the greater the sum-total of force 
that we put into the work, the sooner will the work be done. 
To expect that without our intervening in the political battle 
the transformation of society, the social revolution, will be 
achieved, is childish folly. Whoever thinks so has no idea of 
the difficulty and magnitude of our war of emancipation. In 
Halle I spoke of " how the society of to-day grows info the 
Socialistic society." I have often been taken to task for the 
word. I meant to indicate by it merely the organic character 
of the development of society, which is not a machine, but 
a collective living being ; but on every occasion, including 
that one, I have clearly insisted that men are not the toy of 
destiny, and may not stand inactive, expecting blessings to 
descend on them ; that circumstances determine men, but that 
they are also determined by men ; and that as the class-war 



W. LIEBKNECHT 13 

is a constant human wrestle, so the attainment of our end can 
only be the fruit of a ceaseless war, in which all fight together, 
and each throws his whole self, his existence, recklessly into 
the balance, joyfully staking life and property. 

" It cannot effect the passing of the means of production 
into the ownership of the community without acquiring political 
power," says this section, further on; that is, we fight for 
power in the State^ for " the latch of legislation," which is now 
monopolized by our opponents in their class-interest. "To 
shape this battle of the working-class into a conscious and 
united effort, and to show it its naturally necessary end is the 
object of the Social Democratic party." So it is not our 
object to conjure up before the workers the phantasm of 
the State of the Future, but to enlighten them upon the 
process of development and the laws of the movement, 
of the society of to-day; to show them what is necessary 
to make an end of exploitation and enslavement, to show 
them how bourgeois society itself in its further development 
more and more puts into our hands the means of abolish- 
ing it. Here the double character of our party is clearly 
expressed : the scientific character which refuses, after the 
Bismarckian recipe of blood and iron, to conceive the his- 
torical movement as an arbitrary one which you can lead as 
you like to revolution or reaction, and which recognizes that 
the movement has fixed, unalterable laws; and the practical 
character of our party, which manifests itself in that the workers 
are shown the way to the end, are shown that they can only 
attain their end by obtaining political power, only by our 
hastening as much as possible the process of dissolution of 
contemporary society, only by our organizing ourselves for 
power more and more. 



Ill 

AN ACCOUNT OF MARX'S THEORY 
BY F. ENGELS 

This is part iii. 2 of Engels' Herrn Eugen Duhrings Umwaizung 
der Wissenschaft. 

F. Engels (1820-1895) was the son of a wealthy Bremen cotton- 
spinner. In 1844 he met Karl Marx in Paris, and for the rest of his 
life was Marx's alter ego. The two last volumes of Marx's Capital 
were edited by him after Marx's death. 

His book, Herrn Eugen Duhrings Umwdlzung der Wissenschaft, 
was published in 1878, towards the close of Marx's life. Few books 
are cited oftener or with more authority in the discussions of the 
German party. 

THE materialist conception of history starts from the principle 
that production, and next to production the exchange of its 
The "ma- products, is the basis of every social system; that 
teriaiist in every society arising in history the allotment 

of history"' f P roducts > and with lt the division of society 
into classes or ranks, depends upon what is pro- 
duced, how it is produced, and how when produced it is 
exchanged. Accordingly the ultimate causes of all social 
changes and political revolutions are not to be looked for in 
the heads of men, in their growing insight into eternal truth 
and justice, but in changes of the methods of production and 
exchange; they are to be looked for not in the philosophy -, 
but in the economy of the epoch in question. The awakening 
perception that existing social arrangements are unreasonable 
and unjust, that reason has become nonsense and goodness 
a scourge, is only a symptom of the fact that in the methods 

14 



F. ENGELS 15 

of production and forms of exchange alterations have 
silently gone on to which the social system fitted for earlier 
economic conditions no longer corresponds. That amounts 
to saying that the means for removing the evils revealed must 
itself, more or less developed, be present in the altered 
conditions of production. This means is not something to be 
invented out of the head, but something to be discovered 
by means of the head in the material facts of production lying 
before us. 

How does modem Socialism accord with this conception ? 

The present social system has been, as is now pretty 
generally conceded, created by the now dominant class, the 
bourgeoisie. The method of production proper to the bour- 
geoisie, designated, since Marx, as the capitalistic method of 
vDroduction, was incompatible with the: local and fixed privi- 
leges and the reciprocal personal ties of the feudal system ; 
the bourgeoisie shattered the feudal system and erected on 
its ruins the bourgeois conception of society, the empire of 
free competition, of free locomotion, of equal rights for the 
possessors of commodities, and of all the other bourgeois fine 
things. The capitalistic method of production The rise of 
could now unfold itself freely. The productive the ' : great 
forces elaborated under the direction of the bour- i} 
geoisie developed, after steam and the new machinery had 
transformed the old manufacture into the great industry, with 
hitherto unheard-of rapidity on a hitherto unheard-of scale. 
But as in its time manufacture and the handicraft developed 
under its influence came into conflict with the feudal fetters of 
the guilds, so the great industry in its fuller development 
comes into conflict with the limitations in which the 
capitalistic method of production has confined it. under eon- 

The new productive forces have already quite ditionsde- 

,. . . ... signed for 

outgrown the bourgeois form of their utilization ; petty 

and this conflict between productive forces and industry, 
methods of production is not a conflict which has originated 
in the heads of men, like the conflict between human original 



1 6 MODERN SOCIALISM 

sin and divine righteousness, but it exists in facts, is objective, 
outside of us, independent of the will or the course even of 
those human beings who have brought it about. Modern 
Socialism is nothing more than the mirroring in thought of 
this conflict in fact, its ideal reflection in the heads of the 
class, primarily, which directly suffers by it, the working- 
class. 

In what does this conflict consist ? 

Before capitalistic production that is, in the Middle Ages 
there everywhere existed petty industry, on the basis of 
the workers owning privately their means of production : the 
Origins of agriculture of the small free or subject peasants, 
the present the handicraft of the towns. The means of work 
ownership ^ an( ^> agricultural implements, workshop, manual 
and ex- tools were means of work for the individual, 
ange * only calculated for individual use, so necessarily 
upon a small, pigmy, restricted scale. But for that very 
reason they belonged as a rule to the producer himself. To 
concentrate these fragmentary, cramped means of production, 
to expand them, to transform them into the powerfully 
operative lever of the production of to-day, was just the 
role in history of the capitalistic method of production and 
its agent, the bourgeoisie. How it carried this out historically 
after the fifteenth century in the three stages of simple 
co-operation, manufacture, and the great industry, Marx 
has depicted expressly in the fourth section of Capital. 
nd their "^ ut t ^ e bourgeoisie, as is there proved, could 
obsoies- not change those limited means of production 
thr^u h the * nt m *k tv productive forces, without changing 
rise of social them from means of production of the individual 

methods of j n j- o soc i a i means of production only to be utilized 
production. ' . 

by a collectivity of men. In place of the spinning- 
wheel, the hand-loom, and the smith's hammer, came the 
spinning-mule, the power-loom, and the steam-hammer; 
in place of the individual workshop, the factory enabling 
hundreds and thousands to work together. And along with 



F. ENGELS 17 

the means of production, production itself changed from a 
series of individual performances into a series of social acts, 
and the products from products of individuals into social 
products. The yarn, the cloth, the hardware, which now 
came from the factory, were the common product of many 
workers, through whose hands they had to go in order before 
they were ready. No individual can say of them : " I made 
that ; that is my product." 

Where, however, the natural division of labour within society 
is the basic form of production, it stamps on the products the 
form of commodities, whose reciprocal exchange, purchase and 
sale, puts the individual producers in a position to satisfy their 
manifold needs. And in the Middle Ages this was the case. 
The peasant,^., sold farm-produce to the handicraftsman, and 
bought from him in return the products of handicraft. Upon 
this society of individual producers, producers of commodities, 
intruded the new method of production. In the midst of the 
natural undesigned division of labour prevailing all through 
society, it set up the designed division of labour as organized 
in the individual factory ; by the side of individual production 
appeared social production. The products of both were sold 
on the same market, therefore at prices at least approximately 
equal. But the designed organization was more powerful than 
the natural division of labour ; the factories with their social 
labour got out their products more cheaply than the small 
individual producers. Individual production failed in one 
sphere after another; social production revolutionized the 
entire former method of production. But this its revolutionary 
character was so little recognized, that on the contrary it was 
introduced as a means for augmenting and advancing the 
production of commodities. It arose in immediate connection 
with definite machinery, already discovered for the production 
and exchange of commodities : merchant's capital, handicraft, 
wage-labour. While it appeared itself as a new form of the pro- 
duction of commodities, the forms of appropriation in force for 
the production of commodities remained also in full force for it. 

c 



1 8 MODERN SOCIALISM 

In the production of commodities, as developed in the 
Middle Ages, there could arise no question as to whose should 
be the product of labour. As a rule, the individual producer 
had made it out of raw material belonging to him, and often 
incompati- produced by him, with his own instruments of 

b !L ity ^k? work, and his own manual labour or that of his 

old method . 

of appropri- family. There was absolutely no need for him 

ation and fi rs t t o appropriate it; it belonged to him entirely 
method of of itself. A man's ownership of the product rested, 
production, therefore, on his own work. Even where outside 
assistance was used, this as a rule remained secondary, and 
commonly involved some other benefit besides wages; the 
guild apprentice and companion worked less for the money 
and the wage than for their own training to be masters. Then 
came the concentration of the means of production in great 
workshops and factories, and its alteration into a really social 
means of production. But the social means of production and 
products were treated as though they were still, as they had 
been, the means of production, and products, of individuals. 
As the possessor of the means of production had hitherto 
appropriated the product, because it as a rule was his own 
product and the labour of outside assistants was the exception, 
so now the possessor of the means of production continued to 
appropriate the product, although it was no longer his product, 
but exclusively the product of outside labour. Thus the 
products now made socially were not appropriated by those 
who had really set the means of production in motion and 
really made the products, but by the capitalists. Production, 
and the means of it, have really become social. But they are 
subject to a form of appropriation, which presupposes the 
private production of individuals, in which every one possesses 
and brings to market his own product. The method of pro- 
duction is subject to this form of appropriation, although 
it does away with what this form presupposes. 1 In this 

1 It need not here be explained, that although the form of appro- 
priation remains the same, its character is no less revolutionized by the 



F. ENGELS 19 

contradiction, which lends to the new method of production 
its capitalistic character, the whole discord of the present lies 
already in germ. The more the new method of production 
came to dominate all important fields of production and all 
important countries, the more glaringly came perforce to 
light the incompatibility of social production and capitalistic 
appropriation. 

The first capitalists found, as we said, the form of wage- 
labour already to hand. But wage-labour as an exception, 

a side occupation, a supplement, a transitional 

rr-u i u u f Origin of 

stage. The country labourer, who from time to the wage- 
time went to earn day -wages, had his few acres earning pro- 

... i j r ' L-II i i j < letariate. 

of his own land, from which alone he could if 

necessary live. The guild ordinances provided that the com- 
panion of to-day should pass on to be the master of to-morrow. 
But as soon as the means of production were changed and 
became social, and were concentrated into the hands of 
capitalists, this was altered. The means of production, as 
well as the product, of the small individual producer became 
more and more valueless; nothing was left for him but to 
go to the capitalist for wages. Wage-labour, previously an 
exception and a supplement, became the rule and the funda- 
mental form of all production ; formerly a side occupation, 
it became now the exclusive activity of the worker. The 
temporary wage-worker turned into the lifelong wage-worker. 
The multitude of lifelong wage-workers was, besides, colossally 
increased through the simultaneous collapse of the feudal 
iystem, dissolution of the retinues of the feudal lords, dismissal 
peasants from their court posts, etc. The cleavage was 

described above than is production. If I appropriate my own 
roduct, or if I appropriate some one else's, those are naturally two very 
ifferent sorts of appropriation. Note too, that wage-labour, in which the 
whole capitalistic method of production is contained in germ, is very old ; 
in an individualized and scattered form it subsisted for centuries beside 
slavery. But the germ could not develop into the capitalistic method of 
production, until the historical conditions for it had come about, [Engels* 
Note.] 




20 MODERN SOCIALISM 

complete between the means of production concentrated in 
the hands of the capitalists on the one side, and the producers 
reduced to possessing nothing but their labour power on the 
other. The contradiction between social production and 
capitalistic appropriation appeared as an opposition between 
proletariate and bourgeoisie. 

We saw that the capitalistic method of production intruded 
itself upon a society of individual producers producing com- 

, modities, the means of whose social connection 
Tyranny or ... , _. 

competition was the exchange of their products. But every 

in the pre- society resting on production of commodities has 
sen t system* , . 

the peculiarity, that in it the producers have lost 

the control over their own social relations. Every one produces 
for himself with his means of production, whatever it may be, 
and for his individual exchange requirements. No one knows 
how much of his article comes to the market, or how much of 
it is needed; no one knows whether his individual product 
meets a real need, whether he will be able to balance his 
expenses, or to sell it at all. There is a prevailing anarchy of 
social production. But production of commodities, like every 
other form of production, has its peculiar, inherent laws, 
inseparable from it ; and these laws are fixed, in spite of the 
anarchy, in it and through it. They appear in the single per- 
sistent form of social connection, in exchange, and they assert 
themselves against the individual producers as the coercive laws 
of competition. They are therefore at the outset unknown 
to these producers themselves, and have first to be gradually 
discovered by them through long experience. They are fixed 
not by the producers nor in the producers' interest, but as the 
blindly-operative natural laws of their form of production. The 
product governs the producer. 

In mediaeval society, that is, in the first centuries, produc- 
tion was essentially directed to producers' uses. It in the 
main satisfied only the needs of the producer and his family. 
Where, as in the country, there existed relations of personal 
dependence, it contributed also to satisfy the needs of the 



F. ENGELS 21 

feudal lord. In this case no exchange took place, and the 
products did not acquire the character of commodities from it 
either. The peasant's family produced nearly everything that 
it needed, furniture and clothing no less than food. Only 
when it went so far as to produce a surplus over and above its 
own requirements and the tribute in kind due to the feudal 
lord, did it also produce commodities; this surplus, thrown 
into the social exchange, exposed for sale, became a com- 
modity. The town handicraftsmen had of course from the 
beginning to produce for Exchange. But they, too, worked 
principally to satisfy their own requirements ; they had gardens 
and small fields ; they sent their cattle into the common forest, 
which at the same time supplied them with timber and fire- 
wood; the women spun flax, wool, etc. Production for the 
purpose of exchange, production of commodities, was only 
beginning. Hence a restricted exchange, a restricted market, 
a stable method of production, local exclusiveness against 
outsiders, local unity within : the manor in the country, the 
guild in the town. 

But with the extension of production, and in particular 
with the rise of the capitalistic method of production, the 
hitherto dormant laws of the production of commodities be- 
came more openly and powerfully realized. The old associa- 
tions were relaxed, the old exclusive limits broken through, the 
producers converted more and more into independent, isolated 

producers of commodities. The anarchy of social Contrast 

between 
production became apparent, and was more and the organi- 

more accentuated. But the main instrument, by zation of 

production 
which the capitalists method of production en- inthein- 

hanced this anarchy in social production, was the dividual 

. 7 - . factory and 

exact opposite of anarchy : the increasing organi- the anarchy 






zation of production on social lines in every 
separate producing establishment. With this in- S0 ciety as a 
strument it put an end to the old peaceful stability, whole. 
Where it was introduced into a branch of industry, it 
ffered no older industrial methods to remain beside it. 



22 MODERN SOCIALISM 

Where it took hold of handicraft, it annihilated the old handi- 
craft. The field of labour became a battle-field. The great 
geographical discoveries, and the colonizations which followed 
them, multiplied many times over the area of the market, and 
emphasized the change from handicraft to manufacture. Not 
only did the struggle break out between the separate local pro- 
ducers ; the local struggles grew on their side to national ones, 
the commercial wars of the seventeenth and eighteenth centuries. 
Finally, the great industry and the establishment of the world- 
market made the struggle universal and at the same time gave 
it an unheard-of severity. Between single capitalists as between 
whole industries, and whole countries, the favour of natural or 
artificial conditions of production decided the question of 
existence. The weaker was mercilessly eliminated. It is 
Darwin's struggle for individual existence, transferred with 
heightened ferocity from nature to society. The natural 
standpoint of the beast appears as the summit of human 
development. The contradiction between social produc- 
tion and capitalistic appropriation, reproduces itself as an 
opposition between the organization of production in the 
individual factory and the anarchy of production in the entire 
society. 

In these two manifestations of the contradiction imminent 
in it by reason of its origin, the capitalistic method of pro- 
duction moves, describing without any way out that vicious 
circle, which already Fourier discovered it in. What Fourier, 
of course, could not see in his time, is that this circle gradually 
contracts, that the movement rather describes a spiral, and must 
reach its end, like the movement of the planets, by a collision 
with the centre. It is the driving force of the social anarchy 
of production, which converts the great majority of human 
beings more and more into proletarians, and again it is the 
masses of proletarians which finally will put a stop to the 
anarchy of production. It is the driving force of the social 
anarchy of production, which converts the infinite perfectibility 
of the machines of the great industry into an imperative 



F. ENGELS 23 

command that every individual industrial capitalist shall perfect 
his machinery more and more, on pain of ruin. But to perfect 
machinery means to render superfluous human labour. If the 
introduction and increase of machinery means the crushing out 

of millions of manual workers by a few machine- _ 

5 . The new 

workers, the improvement of machinery means the "reserve- 

crushinsr out of more and more of the machine- P?*" ? 

industry, 
workers themselves ; and, in the last instance, the 

production of a number of available wage-workers exceeding 
the average demand of capital for employees, a regular reserve- 
army of industry, as I called it as far back as 1845,* available 
for the times when industry is working at high pressure, thrown 
on the pavement by the collapse which necessarily follows, at 
all times a lead weight tied round the feet of the working-class 
in its struggle for existence against capital, a regulator for 
depressing the wage of labour to the low level set by the 
capitalist demand. So it comes about that machinery, as 
Marx puts it, is the most powerful weapon of capital against 
the working-class, that the means of work is continually dashing 
the means of subsistence out of the worker's hand, that the 
worker's own product turns into a tool for the worker's enslave- 
ment. Thus it happens that the economizing of the means of 
work leads to most reckless squandering of labour-force and 
robbery of what the labour-function should normally start 
from ; that machinery, the strongest instrument for shortening 
work-time, is transformed into the surest instrument for con- 
verting the whole lifetime of the worker and his family into 
available work-time for capital to profit by; that the over- 
employment of one man comes to imply the unemployment of 
another, and that the great industry, which hunts the whole 
world over for fresh consumers, limits the consumption of the 
masses at home to a starvation minimum, and undermines 
thereby its own domestic market. " The law which keeps the 
relative surplus population or reserve army of industry, con. 
tinually balancing the extent and energy of the accumulation of 

1 Lageder aibeitenden Klasse in En 'gland \ p. 109. 



24 MODERN SOCIALISM 

capital, rivets the worker more firmly to capital than Hephaestus 
wedges riveted Prometheus to the rocks. It causes an ac- 
cumulation of misery corresponding to the accumulation of 
capital. The accumulation of wealth at the one pole is there- 
fore at the same time an accumulation of misery, hard work, 
slavery, ignorance, b realization, and moral degradation at the 
opposite pole, i.e. on the side of the class, which produces its 
own product in the form of capital." l And to expect any 
other division of the products from the capitalistic method of 
production, is like wanting the electrodes of a battery, while 
remaining connected with it, to leave water undecomposed, 
instead of developing oxygen at the positive pole and hydrogen 
at the negative. 

We saw that the maximized capacity for improvement of 
modern machinery turns, through the anarchy of production 
in society, into an imperative command that the individual 
industrial capitalist shall continually improve his machinery, 
continually raise its productive power. Into a similar imperative 
command turns the mere de facto possibility of his extending 

his sphere of production. The enormous power 
The demand r - .. L . , , 

forexpan- f expansion of the great industry, compared to 

sionof which that of gases is simply child's play, now 
manifests itself to us as a qualitative and quanti- 
tative demand for expansion, which laughs at every opposing 
check. Such a check is formed by the consumption, the 
outlet, the markets, for the products of the great industry. 
But the capacity of expansion of markets, extensive and 
intensive alike, is governed immediately by quite other laws, 
with a far less energetic operation. The expansion of markets 
cannot keep pace with the expansion of production. The 
clash becomes inevitable, and as it can give rise to no solution 
as long as it does not explode the capitalistic method of pro- 
duction itself, it becomes periodic. Capitalistic production 
gives rise to a new " vicious circle." 

In fact, since 1825, when the first general crisis broke out, 
1 Marx, Capital; English translation by Moore and Aveling, p, 661. 



F. ENGELS 25 

the whole industrial and commercial world, the production 
and exchange of all the civilized nations and their more or 
less barbarous dependencies, gets out of joint just Theopy of 
about once every ten years. Transport comes to commercial 
a standstill, the markets are glutted, products lie e 
unremoved, as abundant as they are impossible to get rid of, 
ready money goes out of sight, credit disappears, factories are 
idle, the working masses lack the means of subsistence because 
they have produced too much of it, bankruptcy follows bank- 
ruptcy, and bankrupt after bankrupt is sold up. The standstill 
lasts for years, productive forces as well as products are 
squandered and destroyed wholesale, till the accumulated 
masses of commodities are finally disposed of more or less 
below value, and production and exchange gradually resume 
their course. After a while the pace becomes marked ; it falls 
into a trot ; the trot of industry passes into a gallop, and this 
again increases to the unbridled career of a complete industrial, 
commercial, banking, and speculative steeplechase, so at last 
to attain once more the breakneck leap into the grave of the 
crisis. And so all over again and again. Since 1825 we have 
now experienced this five times, and at the present moment 
(1877) are experiencing it for the sixth. And the character 
of these crises is so sharply marked out that Fourier named 
them all when he named the first one : " crise plcthorique " 
crisis from over-supply. 1 

In the crises the contradiction between social production 
and capitalistic appropriation breaks out violently. The 
circulation of commodities is for the moment annihilated; 
the medium of circulation, money, becomes a hindrance to 
circulation; all the laws of the production and circulation of 
commodities are turned upside down. The economic clashing 

1 This theory, and its premiss that the workers only get a small fraction 
of the value of their work, was advanced also by the theoretic Socialist 
Rodbertus. Unchecked capitalism, in this view, minimizes the purchasing- 
power of the majority, while maximizing their producing-power ; hence 
the crises. 



26 MODERN SOCIALISM 

has reached its maximum; the method of production is in 
revolt against the method of exchange, the productive forces 
are in revolt against the method of production, out of which 
they have grown. 

The fact that the social organization of production inside 
the factory has developed itself to the point at which it is 
incompatible with the anarchy of production existing beside 
and beyond it in society; this fact is made obvious to the 
capitalists themselves, by the powerful concentration of capitals, 
which, during crises, is achieved by means of the ruin of many 
great, and still more small, capitalists. The whole mechanism 
of the capitalistic method of production gives out under the 
pressure of the productive forces which it has itself created. 
It can no longer convert all these masses of the means of 
production into capital; they lie fallow, and for that very 
reason, the reserve army of industry must lie fallow also. 
Means of production, means of subsistence, available workers, 
all elements of production and of the general wealth, are present 
in superfluity. But "superfluity is the source of want and 
need " (Fourier), because it is just it which impedes the 
conversion of the means of production and subsistence into 
capital. For in capitalist society the means of production 
cannot come into action, unless they have previously been 
converted into capital, into means for the exploitation of 
human labour-force. Between them and the workers stands, 
like a spectre, the necessity for them and the means of sub- 
sistence to take the character of capital. It alone prevents 
the harmonious working of the material and personal factors 
in production ; it alone forbids the means of production to 
function, and the workers to work and live. On the one hand, 
therefore, the capitalistic method of production becomes con- 
vinced of its own incapacity to control further these productive 
forces. On the other, these productive forces themselves bring 
increasing pressure to bear for the removal of the contradiction, 
for their release from their character as capital, for actual 
recognition of their character as social productive forces. 



F. ENGELS 27 

It is this opposition of the powerfully growing productive 
forces to their character as capital, this increasing pressure 
for the recognition of their social character, which Tendency 
compels the capitalist class itself more and more, J^Ja/ l 
so far as this is at all possible, inside the capitalistic soeiaiiza- 
conditions, to treat them as social productive forces, 
Both the high-pressure periods of industry, with their forces, 
limitless inflation of credit, and the crisis itself by the collapse 
of great capitalist firms, lead to that form of the socialization 
of larger quantities of tiie means of production, which confronts 
us in the different sorts of joint-stock companies. Many of 
these means of production and traffic are from the first so 
colossal, that, like the railways, they exclude every other form 
of capitalist exploitation. At a certain stage of development, 
this form also ceases to suffice; the official representative of 
capitalist society, the State, must take over their management. 1 
This need for conversion into State property appears first in 

1 I say "must." For only in case the means of production or traffic 
have really outgrown management by joint-stock companies, and therefore 
nationalization has become economically irrefutable, only in this case does it 
signify, even though achieved by the present State, an economic progress, 
the attainment of a new step forward to the appropriation of all productive 
forces by society itself. Recently, however, since Bismarck turned to 
nationalization, a certain sham Socialism has appeared, and here and 
there degenerated into mere servility, which pronounces all nationalization, 
even Bismarck's, to be Socialistic without more ado. Of course if the 
nationalization of the tobacco trade were Socialistic, Napoleon and 
Metternich would be numbered among the founders of Socialism. If 
the Belgian State, for quite everyday reasons of politics and finance, built 
its main railways itself; if Bismarck, without any economic necessity, 
nationalized the main lines in Prussia, simply to be better able to manage 
and utilize them in case of war, to train up railway servants as govern- 
ment voters, and above all to get a new source of revenue independent 
of Parliamentary votes those were in no way Socialistic steps, neither 
directly nor indirectly, consciously nor unconsciously. Otherwise the royal 
sea-trade, the royal porcelain manufacture, and the company-tailors in the 
army, would be Socialistic arrangements. [Note of Engels. Reformist 
Socialists would probably describe all such arrangements as Socialistic, 
although "indirectly and unconsciously " so.] 



a8 MODERN SOCIALISM 

the case of the great traffic concerns : the post, telegraphs, and 
railways. 

If the crises revealed the inability of the bourgeoisie to 
control further the modern productive forces, the conversion 
of the great producing and traffic concerns into joint-stock 
companies and State property shows that the bourgeoisie can 
be dispensed with for that purpose. Every social function 
of capitalists is now discharged by salaried servants. The 
capitalist has no social activity left, except to pocket incomes, 
to cut off coupons, and to gamble on the Stock Exchange, 
where the different capitalists relieve each other of their capital. 
If the capitalistic method of production at first crushed out the 
workers, so now it crushes out the capitalists, and rejects them, 
just like the workers, into the surplus population, though not 
immediately into the reserve-army of industry. 

But neither the conversion into joint-stock companies, nor 
that into State property, takes away the character of capital 
from the productive forces. In the case of joint-stock com- 
panies this is palpable. And the modern State, again, is only 
the organization, which bourgeois society gives itself in order 
Capitalist to u P no ^ tne universal outward conditions of 
ciass-eha- the capitalistic method of production against the 
th^existing encroachments, not only of the workers, but of 
modern individual capitalists. The modern State, as indeed 
its form shows, is an essentially capitalist machine, 
a State of the capitalists, the ideal of capitalist aggregate. The 
more productive forces it takes over into its ownership, the 
more does it become a real capitalist aggregate, the more does 
it exploit its citizens. The workers remain wage- workers, pro- 
letarians. The relationship of capital is not removed ; rather 
it culminates. But at the culmination comes transformation. 
State-ownership of productive forces is not the solution of the 
conflict ; but it contains in itself the formal means of the 
solution, the handle to it. 

This solution can only be found in the actual recognition of 
the social nature of the modern productive forces, so that the 



F. ENGELS 



29 



methods of production, appropriation, and exchange shall be 
harmonized with the social character of the means of pro- 
duction. This can only take place, if society, 
openly and without beating round the bush, seizes 
hold of the productive forces, which have outgrown every 
management but its own. Thereby the social character of 
the means of production and products, which to-day turns 
against the producers themselves, breaks down periodically the 
methods of production and exchange, and only accomplishes 
itself in violence and destruction, as a blindly working natural 
law, will be brought to its full effect by the producers acting 
with their eyes open, and will transform itself from a cause of 
disturbance and periodical collapse into the most powerful 
lever of production itself. 

The forces operative in society operate just like natural 
forces blindly, violently, destructively, so long as we do not 
recognize them and reckon with them. But when once we 
have recognized them and grasped their activity, their direc- 
tion, and their workings, it only depends upon ourselves to 
subject them more and more to our will and to attain our 
objects by their means. And this holds particularly true of 
the powerful productive forces of to-day. So long as we 
obstinately refuse to understand their nature and their cha- 
racter and to thwart this understanding the whole capitalistic 
method of production and its defenders strive, so long do 
these forces work themselves out in spite of us, against us, 
so long do they dominate us, as we have in detail described. 
But once they are apprehended in their nature, they can, in 
the hands of the associated producers, be converted from 
demonic masters into willing servants. It is the difference 
between the destructive force of electricity in the lightning of 
the storm, and the fettered electricity of the telegraph and the 
arc-light ; the difference between a fiery conflagration, and fire 
working in the service of man. With this treatment of the 
modern productive forces in accordance with their ultimately 
recognised nature, the social anarchy of production is replaced 



30 MODERN SOCIALISM 

by a socially designed regulation of production according to 
the acquirements of the collectivity and of every individual ; 
the capitalistic method of appropriation, in which the product 
enslaves first the producer and afterwards the appropriator 
too, is replaced by that method of appropriating the products 
which is founded in the very nature of the modern means of 
production : on the one hand, direct social appropriation as a 
means for the maintenance and extension of production ; on 
the other hand, direct individual appropriation as a means of 
subsistence and enjoyment. 

While the capitalistic method of production more and 
more converts the great majority of the population into pro- 
Theroleof letarians, it is creating the power which is com- 
theproie- pelled, on pain of perishing, to achieve this 
revolution. While it more and more forces the 
great socialized means of production to be converted into 
State property, it is itself pointing the path for this revolution's 
achievement. The proletariate seizes the power of the State> 
and converts the means of production into State property at once. 
But it thereby abolishes itself as a proletariate, abolishes all 
class distinctions and class antagonisms, and abolishes the 
State as State. Society, hitherto, stirred by class antagonisms, 
needed the State, i.e. an organization of the exploiting class 
in each period to maintain their external conditions of pro- 
duction, and especially, therefore, to hold down by force the 
exploited classes in the conditions of oppression afforded by 
the existing methods of production (slavery, serfdom or 
bondage, and wage-labour). The State was the official repre- 
sentative of the whole of society, its embodiment in a visible 
corporation j but it was this only in so far as it was the State 
of that class which itself for its period represented the whole 
of society in antiquity the State of the slave-holding burgesses, 
in the Middle Ages that of the feudal nobility, in our time 
that of the bourgeoisie. When at last it really becomes 
representative of the whole of society, it renders itself super- 
fluous. As soon as there is no longer a class in society to be 



F. ENGELS 31 

held in subjection, as soon as, along with the class-domination 
and the struggle for individual existence based on the anarchy 
of production hitherto, the resultant clashings and excesses 
disappear there is no longer anything to be repressed, which 
might necessitate a special repressive force, a State. The first 
act in which the State really appears as representative of the 
whole of society the appropriation of the means of production 
in the name of society is at the same time its last independent 
act as a State. The interference of a State authority in social 
relations grows superfluous in one sphere after another, and 
then of its own accord becomes dormant For government 
of persons is substituted control of things and management 
of the processes of production. The State is not " abolished," 
it dies out. In this context should be considered the phrase 
l( free popular State," both in its temporary Tightness for 
purposes of agitation, and in its ultimate scientific inadequacy ; 
so, too, should the demand of the so-called Anarchists, that 
the State should be abolished in twenty-four hours. 

The appropriation of all the means of production by society 
has, ever since the appearance in history of the capitalistic 
method of production, hovered often more or less hazily as 
the future ideal before the eyes of individuals and of whole 
sects. But it could not become possible, could M a t eP i a i 
not be historically necessary, until the material facts con- 
conditions were present for it to be carried out. oJSgSSfd 
Neither it .nor any other social advance becomes abolition of 
realizable through the acquired perception that classes 
the existence of classes is contrary to justice, equality, etc. ; 
nor through mere willingness to abolish these classes, but 
through certain new economic conditions. The splitting of 
society into an exploiting and an exploited, a ruling and a 
subject class, was the necessary result of the former slight 
development of production. As long as the aggregate labour 
of society gives a yield only slightly in excess of what was 
needed for the bare existence of everybody, as long, therefore, 
as labour claims all, or nearly all, the time of the great majority 



32 MODERN SOCIALISM 

of the members of society, so long does society necessarily 
divide itself into classes. Beside this great majority, which 
drudges exclusively at labour, is formed a class freed from 
directly productive work, which looks after the common con- 
cerns of society management of labour, State affairs, justice, 
science, the arts, etc. The law of the division of labour, 
therefore, is what lies at the base of the division of classes. 
But that does not prevent this division of classes from having 
been established through violence and robbery, guile and 
fraud, nor the ruling class from having, when once in the 
saddle, secured their domination at the expense of the working- 
class, and transformed the management of society into an 
exploitation of the masses. 

But if on this view the division into classes has a certain 
historical justification, it has it only for a given period of time, 
for given social conditions. It was based on the insufficiency 
of production ; it will be swept away by the full unfolding of 
the modern productive forces. And, in fact, the abolition of 
classes in society presupposes a degree of historical develop- 
ment, at which the existence, not merely of this or that 
particular ruling class, but of a ruling class at all, and there- 
fore of the class-distinction itself, has become an obsolete 
anachronism. It presupposes, therefore, a high degree of the 
development of production, at which for a special class in 
society to appropriate the means of production and products, 
and with them political supremacy and the monopoly of 
education and intellectual management, is not only superfluous, 
but economically, politically, and intellectually a hindrance 
to development. This point is now reached. While the 
bourgeoisie itself is hardly unaware any longer of its political 
and intellectual bankruptcy, its economic bankruptcy is re- 
peated regularly every ten years. In every crisis society is 
suffocated under the weight of its own productive forces and 
products, which it cannot utilize ; and stands helpless before 
the absurd contradiction, that the producers have nothing to 
consume because there is a dearth of consumers. The 



F. ENGELS 33 

expansive power of the means of production is bursting the 
bonds which the capitalistic method of production puts upon it. 
Its emancipation from these bonds is the sole condition to be 
fulfilled for an uninterrupted, ever rapidly advancing develop- 
ment of productive forces, and with it a practically unlimited 
increase of production itself. Nor is that all. Social appro- 
priation of the means of production removes not only the 
present artificial check on production, but also the positive 
squandering and spoiling of productive forces and products, 
which at present is the inevitable accompaniment of production 
and culminates in the crisis. Moreover, it sets free for the 
community a mass of the means of production and products, 
by doing away with the imbecile expenditure upon luxuries 
which the now ruling classes and their political representatives 
practise. The possibility of securing for all members of 
society, by means of social production, an existence, which 
not only is in a material sense perfectly adequate and daily 
growing wealthier, but also guarantees to them the perfectly 
free training and exercise of their physical and mental faculties 
this possibility was never ours until now, but ours it now is. 1 
When society takes possession of the means of production, 
there is no more production of commodities, and therefore no 
more subjection of the producer to the product. The anarchy 
inside social production is replaced by systematic conscious 

1 A few figures might give an approximate idea of the enormous ex- 
pansive force of the modern means of production, even under the pressure 
of capitalism. According to Giffen's latest calculation, the total wealth of 
Great Britain and Ireland was, in round figures : 

1814 2, 200 million . 

1865 6,100 

1875 8,500 

As to the amount of waste of the means of production and products in 
crises at the second congress of German manufacturers, at Berlin, February 
21, 1878, the aggregate loss of the German iron industry alone in the recent 
crisis was put at 22,750,000. [Engels' note. In a paper read to the 
British Association on September II, 1903, Sir R. Giffen estimated the 
capital wealth of the United Kingdom at 15,000 million pounds.] 

D 



34 MODERN SOCIALISM 

organization. The struggle for individual existence ceases. 
In a certain sense this marks the final separation of man from 
the animal kingdom, and his passage from animal conditions 
of existence to really human ones. The circle of conditions of 
life environing men, which hitherto dominated them, now 
passes under their domination and control ; they now for the 
first time become real, conscious masters of nature, because 
and in that, they are masters of their own association. The 
laws of their own social action, which previously withstood 
them as external overmastering laws of nature, are now applied, 
and so mastered, by men, with full practical knowledge. The 
peculiar association of men, which hitherto confronted them as 
something doled out by nature and history, now becomes their 
own free act. The objective external powers, which controlled 
history, come tinder the control of men themselves. Hence- 
forth for the first time men will make their own history quite 
consciously; henceforth the social causes which they set in 
motion will predominantly and in a steadily increasing 
measure have the results which they wish them to have. Man- 
kind leap from the realm of necessity into the realm of 
freedom. 

To perform this act of world-emancipation is the mission 
in history of the modern proletariate. To investigate its 
historical conditions, and so its very nature, and to make the 
class which is called upon to act the oppressed class of to-day 
aware of the conditions and the nature of its own action, is 
the object of the theoretic expression of the proletarian move- 
ment scientific Socialism, 



IV 

THE PROGRAMME OF THE "COMMUNIST 
MANIFESTO" 

BY KARL MARX AND F. ENGELS 

The Manifesto was the first great deliverance of Marx and Engels. 
It dates from Nov. i847~Jan. 1848. A German revolution on a scale 
greater than the French of 1789 was then generally anticipated, and 
the thought of the writers took a " catastrophic" tinge, which it 
afterwards outgrew. The idea that Marx hoped less from labour 
organization than from labour pauperism and despair, has chiefly been 
derived from the Manifesto ; which was written when the latter were 
everywhere, the former nowhere. 

Nevertheless, with its strong sketch of the Class War, and its 
appeal "Proletarians of all lands, unite!" it is an epoch-marking 
document In a German preface of 1872, the authors justified their 
reprinting it on this ground, while observing, <f This programme has 
in some details become antiquated. One thing especially was proved 
by the (Paris) Commune, viz. that ' the working class cannot simply 
lay hold of the ready-made State machinery, and wield it for its own 



WE have seen above, that the first step in the revolution by 
the working-class, is to raise the proletariate to the position of 
ruling class, to win the battle of democracy. 

The proletariate will use its political supremacy, to wrest, by 
degrees, all capital from the bourgeoisie, to centralize all 
instruments of production in the hands of the State, i.e. of the 
proletariate organized as the ruling class ; and to increase the 
total of productive forces as rapidly as possible. 

Of course, in the beginning, this cannot be effected except 
by means of despotic inroads on the rights of property, and on 

35 



36 MODERN SOCIALISM 

the conditions of bourgeois production ; by means of measures, 
therefore, which appear economically insufficient and untenable, 
but which, in the course of the movement, outstrip themselves, 
necessitate further inroads upon the old social order, and are 
unavoidable as a means of entirely revolutionizing the mode of 
production. 

These measures will of course be different in different 
countries. 

Nevertheless in the most advanced countries, the following 
will be pretty generally applicable. 

1. Abolition of property in land and application of all rents 
of land to public purposes. 

2. A heavy progressive or graduated income tax. 

3. Abolition of all right of inheritance. 

4. Confiscation of the property of all emigrants and rebels. 

5. Centralization of credit in the hands of the State, by 
means of a national bank with State capital and an exclusive 
monopoly. 

6. Centralization of the means of communication and trans- 
port in the hands of the State. 

7. Extension of factories and instruments of production 
owned by the State : the bringing into cultivation of waste 
lands, and the improvement of the soil generally in accordance 
with a common plan. 

8. Equal liability of all to labour. Establishment of 
industrial armies, especially for agriculture. 

9. Combination of agriculture with manufacturing in- 
dustries : gradual abolition of the distinction between town and 
country, by a more equable distribution of the population 
over the country. 

10. Free education for all children in public schools. 
Abolition of children's factory labour in its present form. 
Combination of education with industrial production, etc., etc. 

When in the course of development, class distinctions have 
disappeared, and all production has been concentrated in the 
hands of a vast association of the whole nation, the public 



KARL MARX AND F. ENGELS 37 

power will lose its political character. Political power, properly 
so called, is merely the organized power of one class for 
oppressing another. If the proletariate during its contest with 
the bourgeoisie is compelled, by the force of circumstances, to 
organize itself as a class, if, by means of a revolution, it makes 
itself the ruling class, and, as such, sweeps away by force the 
old conditions of production, then it will, along with these 
conditions, have swept away the conditions for the existence 
of class antagonisms, and of classes generally, and will thereby 
have abolished its own supremacy as a class. 

In place of the old bourgeois society, with its classes and 
class antagonisms, we shall have an association, in which the 
free development of each is the condition for the free develop- 
ment of all. 



THE STANDPOINT OF LASSALLE 

The following two extracts are from Lassalle's classical Offenea 
Antuuort-Schreiben, addressed in March, 1863, to the Central Com- 
mittee for summoning a general congress of German workers at 
Leipzig. The portions of the letter not here given consist mainly 
of an argument that co-operation of the Rochdale sort could not 
solve the social problem, and a plea for co-operative (producing) 
associations of workmen, to whom the State should loan capital 
(Louis Blanc's plan). The Offenes Antwort-Schreiben was the basis 
of the Allgemeiner Deutscher Arbeiterverein, the first central German 
Socialist party (founded May 23, 1863). 

Ferdinand Lassalle (1825-1864) received a university education at 
Breslau and Berlin. In 1848 he wrote for Marx's paper, the Neue 
Rheinische Zeitung. In 1849 he was tried and sentenced to six months' 
imprisonment. Later, he resided at Berlin, publishing literary and 
scientific work, including (in 1861) his System der erivorbenen Rechte. 
In 1862 his Socialistic address, the Arbeiterprogramm, raised a storm ; 
he was prosecuted, and sentenced to four months' imprisonment, 
which was commuted. Thenceforward his activity as an agitator 
was incessant till his sudden death, which occurred in a duel. 

THE brazen economic law l which fixes wages under the con- 
dition of to-day, under the control of the supply of and 
demand for labour, is this : that the average wage always 
remains reduced to the necessary substance which national 
custom demands for the continuance of life and propagation. 

1 As a brazen law, this is now quite discredited ; it was a valid inference 
from premisses of Malthus and Ricardo, which have been upset. Never- 
theless it may still throw a certain light on the case of unskilled labourers, 
who form a large numerical percentage in all modern industrial com- 
munities. 

33 



THE STANDPOINT OF LASSALLE 39 

This is the point around which the actual daily wage gravitates 
like a pendulum, without ever being able much to exceed it 
or to fall far short of it. It cannot permanently xhs brazen 
exceed this average, because, in consequence of law of 
the easier and better condition of the workers, the wages * 
ranks of the workers would increase, their propagation would 
increase, and with the increase of the working population 
would go a corresponding increase in the supply of hands, 
which would quickly send the wage of labour down to and 
below its former level. Wages can also never for long fall 
below this necessary subsistence; for there would result in 
that case emigration, celibacy, and decrease of the birth-rate, 
and finally a decrease, due to misery, in the number of workers, 
which by diminishing the supply of working hands would bring 
back the wage of labour to its former level. 

The actual average wage of labour moves round that centre 
of gravity, about which it must continually fluctuate, and to 
which it must continually revert, sometimes exceeding it 
(in a period of prosperity in all or single branches of trade), 
sometimes not reaching it (in a period of more or less general 
misery and crises). 

The limitation of the average wage to that which national 
custom deems absolutely necessary for the continuance of life 
and propagation that is, I repeat, the brazen and cruel law, 
which controls the wage of labour under the conditions of 
to-day. 

This law is indisputable. To back it I might cite every 
great and famous name in the science of political economy. I 
might cite them from the Liberal school itself, for it is precisely 
this school which has discovered and demonstrated the law. 

This brazen and cruel law you must before all stamp deep, 
deep in your souls, and take it as the staning-point for all 
your thoughts. 

Here I can give you and the whole working-class an 
unfailing method whereby once for all you can avoid being 
duped and led astray. 



40 MODERN SOCIALISM 

When any one speaks to you of improving the position 
of the workers, ask him first Does he acknowledge this law 
or not? 

If he does not, then you must infer, that this man either 
wants to dupe you, or is pitifully ignorant of political economy. 
For, as I have already observed, there is not one economist of 
note, even in the Liberal school, who contradicted the law. 
Adam Smith and Say, Ricardo and Malthus, Bastiat and John 
Stuart Mill, are unanimous in acknowledging it. Agreement 
prevails among all men of science. 

And if the person who is speaking about the condition of 
the workers, acknowledges this law when you question him, 
then ask him further How he wants to abolish it ? And if 
he cannot answer, quietly turn your back on him. He is an 
empty babbler, who wants to dupe and dazzle with vain phrases 
either you or himself. 

Let us for a moment regard more closely the effect and 
nature of this law. Otherwise worded, it is as follows : From 
the yield of labour (production) there is deducted and divided 
among the workers as much as they require to continue life 
(wage of labour). The whole surplus of production of the 
yield of labour falls to the employers' share. It therefore 
follows from this brazen and cruel law, that you (and for that 
reason I called you, in my labour pamphlet to which you 
appeal in your letter, " the class of the disinherited ") are 
necessarily shut out from the increased productivity due to 
the progress of civilization, i.e. from the increased yield of 
labour, from the increased yielding capacity of your own 
labour. Your portion is for ever the bare necessaries of 
life ; to your employers goes everything that is ever produced 
by labour over and above that. 

But since the very great progress of productivity (the 
yielding power of labour) renders many manufactured products 
extremely cheap, it may happen that this cheapness gives you, 
not as producers, but as consumers, a certain indirect advantage 
from the increased productivity of labour. This advantage 



THE STANDPOINT OF LASSALLE 41 

does not affect you in your activity as producers ; it does not 
affect or alter the quota allotted to you from the yield of 
labour; it affects your position as consumers. It similarly 
indeed much more considerably improves the position, as 
consumers, of the employers and of all the people who take no 
part in labour. 

Even this advantage, which affects you as men and not as 
workers, is again effaced by that brazen and cruel law which 
in the long run always depresses the wage of labour back to 
the level of consumption necessary to support life. Only it 
may happen, that if such an increased productivity of labour 
and consequent extreme cheapness of many products inter- 
vene quite suddenly, and if they coincide with a long period 
of increasing demand for manual workers, then these dis- 
proportionately cheapened products are taken up into the sum 
of things which national custom deems necessary to support life. 
The fact, therefore, that the worker and his wage perpetually 
oscillate on the extremest verge of what the needs of any given 
age render necessary to support life, now just overstepping it, 
now somewhat within it, this fact is unchanged. But the 
extremest verge itself may at different times have been altered 
by a coincidence of the circumstances mentioned; and so it 
may come about that, if you compare different ages from one 
another, the position of the working-class in a later century or a 
later generation shows some improvement on that in an earlier 
one, in so far as the minimum which custom demands for the 
absolute needs of life is somewhat higher. 

This little digression I had to make, though it lies far from 
my own objective, because just this trifling improvement in the 
course of centuries and generations is the invariable point to 
which all those who want to throw dust in your eyes, like 
Bastiat, make their cheap and empty declamations revert. 

Mark well what I say. For the reasons given, the 
necessary minimum livelihood, and with it the position of 
the working-class, may, comparing one generation with 
another, have somewhat risen. Whether that really is so, 



42 MODERN SOCIALISM 

whether really the all-round position of the working-class has 
improved, and improved continuously, in the different centuries, 
is a very difficult and complicated problem a problem far too 
learned to be anywhere within or near the competence of those 
who keep amusing you with disquisitions on the dearness of 
cotton last century, and the amount of cotton clothes you now 
use, and similar commonplaces which can be copied out of any 
compendium. It is not my purpose to investigate this problem 
here. I must confine myself to giving you what is not only 
absolutely certain but easy to demonstrate. Let us suppose, 
then, that such an improvement in the lowest needs of life, 
and therefore in the position of the working-class, does con- 
tinuously occur in the different generations and centuries. 

Yet I must show you that, all the same, these commonplaces 
make away with and utterly distort the really relevant question. 
The true ^ ou are cneate ^ behind your backs. If you refer 
ground for to the position of the workers and its improvement, 

the workers y OU mean your position compared with that of 
discontent. * } . l 

your fellow-citizens to-day, compared with the 

contemporary standard of living. And then they amuse you 
by pretending to compare your position with that of the 
workers in earlier centuries ! But the question whether, 
because the minimum which custom deems necessary for life 
has risen (in case it has done so), you are better oft' to-day than 
the workers of 80, 200, or 300 years ago, is a question of no 
value for you, and can afford you no satisfaction; no more 
than can the, of course, admitted fact, that you are better off 
now than the Botokudians and the cannibal savages. 

Every human satisfaction depends always on the relation 
of the means of satisfaction to what the custom of the period 
demands already as bare necessaries for existence, or, which is 
the same thing, on the excess of the means of satisfaction 
beyond the lowest limit of what the custom of the period 
demands as bare necessaries for existence. Raising the mini- 
mum of the lowest necessaries for existence makes people 
suffer and miss things of which earlier ages knew nothing. 



THE STANDPOINT OF LASSALLE 43 

What does the Botokudian miss if he cannot buy soap, or the 
cannibal savage, if he has no proper coat to wear ? What did 
the worker miss before the discovery of America, if he could 
not smoke tobacco, or what before the discovery of printing, 
if he could not procure a useful book ? 

All that human beings suffer and miss depends, therefore, on 
the relation between the means of satisfaction and the cus- 
tomary necessaries of life already recognized at the time. All 
human sufferings and privation, and all human satisfaction- 
consequently every human condition is measured only by 
comparing one's situation with that in which other men of the 
same time find themselves in reference to what the custom of 
the time deems necessary for existence. The position of any 
class is always measured solely by its relation to that of other 
classes at the same time. If, therefore, it were ever so certain 
that the level of the necessary conditions for existence had 
risen in different ages, that satisfactions formerly unknown had 
been recognized by custom as necessaries, and that with them 
had intervened in consequence privations and sufferings 
formerly unknown, yet your position as men has in these 
different ages always remained the same oscillating on the 
lowest margin of what custom at any time demands as necessary 
for existence, now going a little beyond it, now receding a little 
below it. Your position as men has thus remained the same, 
for it is measured not by its relation to that of beasts in prime- 
val forests, or that of African negroes, or that of serfs in the 
Middle Ages, or of workers 200 or 80 years ago, but solely by 
its relation to that of your fellow-men, to that of the other 
contemporary classes. 

And instead of considering this, and thinking how to 
improve this relation and to alter that cruel law, which keeps 
you continually at the lowest margin of the necessaries for 
existence at any period, people amuse themselves by confusing 
the question under your very noses unnoticed by you, and 
entertaining you with problems in the history of civilization 
and retrospective glances at the position of the working-class 



44 MODERN SOCIALISM 

at former epochs retrospects which are the more problematical 
because the manufactured products, which are constantly 
being cheapened so very much, are only consumed by the 
workers on a far smaller scale, while the staples of life, which 
they consume principally, are not controlled by any similar 
tendency to ever-growing cheapness. These are retrospects, 
which could only be valuable, if the all-round position of the 
worker in the different ages w r ere brought within their in- 
vestigation; they are investigations of the most difficult 
nature, and only to be conducted with extreme circumspection. 
Those who dissert upon them to you have not at all the 
material for them ; and they might the rather, therefore, leave 
them to the specialists. 

***** 
Your see, therefore, that it is just a mathematical impossi- 
bility to emancipate the working-class in this way, 1 by the 

_ efforts of its members as merely isolated indi- 
Necessity of . J 

taking viduals ; that these illusions only result from vague 

aetion^nd uncritical ideas; and that the sole way to it, the 
agitating sole way to abolish the cruel law which fixes the 
fopuniver- wa g e o f i a b ourj to which the working-class is 
chained as to a martyr's stake, is the furtherance 
and development for free private labour associations by the 
helping hand of the State. 2 The labour-association move- 
ment founded on the mere atomically-isolated powers of 
individual workers has only been valuable and in this has 
been immensely valuable in showing obviously the way, the 
practical way, in which emancipation may proceed, in pro- 
viding brilliant practical proofs for the removal of all real or 

1 By private co-operative societies, whether distributive or productive, 
unassisted by the State. 

8 Lassalle's economic panacea was the foundation of the co-operative 
associations of producers, to whom capital should be lent by the State. It 
was suggested by Louis Blanc (Organization du Travail, 1839). After the 
union of the Lassallean party with the Marxists at Gotha in 1875, this idea 
gradually disappeared from German Socialism, 



THE STANDPOINT OF LASSALLE 45 

pretended doubt as to its practicability, and in thereby making 
it the State's imperative duty to lend its supporting hand to 
this highest interest of human civilization. 

I have likewise proved to you, that the State is really 
nothing else than the great organization, the great association 
of the working-classes; and that therefore the help and 
furtherance, whereby the State should make smaller associa- 
tions possible, would be nothing but the perfectly natural, 
right, and legitimate social self-help which the working-classes 
in their great association 'render to themselves, to their members 
as separate individuals. 

Once more, then, free private association of workers, but 
free private association made possible by the supporting and 
furthering hand of the State, is the sole way out of the desert 
vouchsafed to the working-class. 

But how enable the State to intervene thus ? The answer 
to this will blaze out at once before the eyes of you all like 
the sun : universal and direct suffrage will alone enable it. 
If the legislative bodies of Germany proceed from universal 
and direct suffrage, then and then only will you be able to 
decide the State to undertake this, its duty. Then will this 
demand be made in the legislative bodies; then may the 
limits and forms and means of this intervention be reasonably 
and scientifically discussed ; then, depend upon it, will the 
men who understand your position and are devoted to your 
cause, stand beside you armed with the white steel of science, 
and be able to guard your interests. And then you, the 
fortuneless classes of society, will anyhow have only to blame 
yourselves and your bad votes, if, and as long as, the repre- 
sentatives of your cause remain in the minority. Therefore, 
as now appears, universal direct suffrage is the bottom principle 
not only for your politics but for your society, the bottom 
condition of all social aid. It is the sole means of improving 
the material position of the working-class. 

But how effect the introduction of universal direct suffrage ? 
Look at England. The great agitation of the English people 



46 MODERN SOCIALISM 

against the Corn Laws lasted for over five years. And then 
the laws had to go ; a Tory Ministry itself had to abolish 
them. 

Organize yourselves as a Universal Union of German 
Workers for the purpose of a legal and peaceful but un- 
wearying, unceasing agitation for the introduction of universal 
direct suffrage in every German State. As soon as ever the 
Union includes but 100,000 German workers, it will be a 
power with which every one must reckon. Propagate this 
cry in every workshop, every village, every hut. May the 
workers of the towns let their higher intelligence and education 
overflow on to the workers of the country. Debate, discuss, 
everywhere, every day, without pausing, without ending, as 
in the great English agitation against the Corn Laws, now 
in peaceful public assemblies, now in private conferences, the 
necessity of universal direct suffrage. The more the millions 
who echo your voice, the more irresistible will be its 
influence. 

Start clubs with funds, to which every member of the 
German Workers' Union must contribute, and at which projects 
for organization can be submitted to you. 

Found with these funds, which, in spite of the smallness of 
subscriptions, can form a powerful financial force for purposes 
of agitation (a weekly contribution of only one silver penny 
would, if the Union had 100,000 members, provide over 
160,000 thalers a year) found public newspapers, to make 
this demand daily and prove the reasons for it from the state 
of society. With the same funds circulate pamphlets for the 
same purpose. Pay agents out of the Union's funds to carry 
this intelligence into every corner of the country, to thrill the 
heart of every worker, every house-servant, every farm-labourer, 
with this cry. Indemnify out of the Union's funds all workers 
who have been injured or prosecuted for their activity. Repeat 
daily, unwearyingly, the same thing, again the same thing, always 
the same thing. The more it is repeated, the more hold it 
takes, the stronger its power grows; 



THE STANDPOINT OF LASSALLE 47 

The whole art of practical success consists in concentrating 
one's whole force at any time upon one point the most 
important point, and looking neither to the right nor to the 
left. Do not you look either to the right or to the left ; be 
deaf to everything which is not universal direct suffrage or is 
not connected with it and capable of leading up to it. 

If you have as in a few years you can really propagated 
this cry among the 89 or even the 96 per cent, of the whole 
population, which as I have shown you form the poor and 
property-less classes of society, then you may be sure your 
wishes will not long be withstood. Governments can sulk and 
squabble with the bourgeoisie about political rights, universal 
suffrage included, so long as political rights are regarded with 
indifference. But universal suffrage regarded by from 89 to 
96 per cent, of the population as a bread-and-butter question 
and diffused with the heat of bodily appetite through the whole 
frame of the nation that, you may be well assured, no power 
whatever will withstand for long. 

That is the sign which you must set up. That is the sign 
in which you shall conquer, There is no other sign for you. 



VI 
THE SAINT-MANDE PROGRAMME 

BY A. MlLLERAND 

From a speech delivered by A. Millerand on May 30, 1896, to 
representatives of all the larger groups of French Socialists. Three 
circumstances give this programme historical importance the 
occasion, the audience, and the sequel. Unity was then germinating 
among French Socialists, and the principal groups made an agree- 
ment on the basis, that while any might put up a candidate at the 
first ballots, all should support at the second ballots whichever 
Socialist had at the first polled most votes. The question then arose 
what, for this purpose, is a Socialist ? In the following excerpt 
may be seen the answer offered by Millerand, in the presence of 
Jaures, Jules Guesde, and lidouard Vaillant, the principal leaders of 
groups, and also of Dr. Flaissieres, the Socialist Mayor of Marseilles, 
and Delory, Mayor of Lille, provincial leaders of the greatest local 
influence in South and North France respectively. This audience, 
so representative of the most contrasted spirits in French Socialism, 
expressed unanimous approval of the programme, by the mouths of 
the leaders mentioned. 

After this date the fuller unity of the groups was achieved, only 
to be soon shattered again by a number of incidents, of which that 
of most public importance was Millerand's own entrance into M. 
Waldeck- Rousseau's Coalition Cabinet (June, 1899). While in office 
Millerand made a point of publicly asserting his fidelity to the Saint- 
Mand6 Programme, and connecting his policy at the Ministry of 
Commerce and Industry with it. (Cp. his speech at Lens, Oct 7, 
1900.) As a " broad-bottom" programme it would probably be still 
accepted by most French Socialists. 

It may be compared with the Report on Fabian policy, which was 
presented to the London International Congress of June, 1896, and is 
therefore very closely contemporary (Fabian Tract, No. 70). 

48 



A. MILLERAND 49 

WHAT is the minimum programme, whose acceptance is 
binding upon whoever claims the title of Socialist ? . . . With- 
out at all assuming to solve the question by my private 
authority, I ask your leave to express quite freely my purely 
personal opinion on it. At the stage of development which 
the Socialist party has reached, I consider it to be its interest 
as well as its duty to define its frontiers with all possible pre- 
cision. Whither is it going ? By what paths does it propose 
to attain its end? Is it true that it has for its 
aim the suppression of Hberty and confiscation property; 

of private property, for its means the recourse eonstitu- 
r -, rr , u ^- u tionalism. 

to force? These are the traits with which our 

opponents of every kind usually agree in delineating the 
Socialist party. Yet does it not appear on the face of it 
that all the points of this pretended definition suppression of 
property, recourse to force form the crudest antithesis, the 
most brutal contradiction, to our doctrines as well as our 
facts ? 

Is not the Socialistic idea completely summed up in the 
earnest desire to secure for every being, in the bosom of 
society, the unimpaired development of his personality ? That 
necessarily implies two conditions, of which one is a factor of 
the other : first, individual appropriation of things necessary for 
the security and development of the individual, i.e. property ; 
secondly, liberty, which is only a sounding and hollow word if 
it is not based on and safeguarded by property. 

On the other hand, is not this evening's banquet, in which 
representatives of every shade of opinion in the Socialist party 
join, the clearest definition of its tactics, and has ever any 
party in this country more than our own respected and trusted 
in universal suffrage ? 

But these two observations, however decisive in the eyes of 
all sincere judges, cannot suffice for us. We must have it out 
with our opponents ; we must come to close quarters with the 
doubt which they try to keep up. We must see what lies be- 
hind the declamations, and what definitely are the interests 

E 



50 MODERN SOCIALISM 

which are sought to be safeguarded against us by those who 
have constantly on their lips the words "liberty" and 
" property." 

The anarchy of capitalism has often been described. You 
may characterize it in one sentence, by stating that under it 
Thecollec- there is no security for any one. Farmers, mer- 

tivistview c hants, manufacturers, intellectual as well as 
of the ' 

capitalist manual workers, are the prey of every chance, 
system. g ut j t j s fa[ s verv ex cess of ill, whence collectivism 
holds that salvation will spring " Collectivism ! " I have 
uttered the dreadful word whose magic incantation should 
arouse against us the millions of urban and rural workers 
whom " Socialism," certainly, no longer avails to terrify. Of 
the collectivist idea I will say but one thing ; l it is not the 
product of a dreamer's imagination, nor the outcome of a 
philosopher's conceptions, but the statement, pure and simple, 
of phenomena being unrolled before our eyes. Men do not 
and will not set up collectivism ; it is setting itself up daily ; 
it is, if I may be allowed the phrase, being secreted by the 
capitalist regime. Under the double influence of the progress 
of science, of which the development of machinery is only 
the translation into practice, and of the concentration of 
capital, we see the small proprietors being expropriated, labour 
and property being dissociated, and a new feudal class being 
set up, which is accumulating in its hands the ownership of 
the instruments of production, to become by a slow but 
implacable progress the absolute master of the economic, 
political, and moral life of the whole people, reduced by it to 
the modern form of slavery called the wages system. Collectiv- 
ism declares that the wages system will be no more everlasting 
than were those previous modes of servitude and human 
exploitation called slavery and serfdom. Collectivism observes 
that the normal development of capitalistic society replaces 
individual property, the condition and safeguard of liberty, by 
the tyrannous monopoly of a minority. It does not rebel 

1 The following passage is extremely Marxian. 



A. MILLERAND 51 

against this observed fact; it bows before it. It does not 
pretend to retrace the course of the centuries, nor decree the 
transformation of mankind ; on the contrary, it adapts itself to 
its rules. Since it is a law of sociological evolution that all the 
means of production and exchange pass from the form of 
individual property to that of capitalistic property, it merely 
claims that in proportion as these vast capitalistic properties 
are formed beneath whose rays small property, individual 
property, withers and dies> in that proportion social property 
should replace capitalistic. 

Here I seem to have my finger on the characteristic feature 
of the Socialist programme. In my view, whoever does not 
admit the necessary and progressive replacement Thesine5u a, 
of capitalistic property by social property, is not a nonofa 
Socialist. That is, it cannot merely be a matter of Soclallst - 
transforming those three categories of the means of production 
and exchange which may be termed classical ones credit or 
banking, transport by rail, and mining enterprises. Here is 
besides these I take an instance which discussion cannot 
damage an industry incontestably ripe now for social appro- 
priation, because, monopolized in a few hands, yielding its 
managers vast profits, characterized at once by the perfecting 
of its machinery and the intense concentration of its capital, it 
is thoroughly fitted to supply a fertile and easy subject for 
social management : I mean the sugar-refining industry. It is 
an instance, and only one ; but really, is there anything very 
novel about this national monopoly, which to-morrow shall 
restore to all the gain unduly monopolized by a few ? Surely, 
as the representatives of Socialist municipalities in my audience 
know only yesterday I had an instance of it in a by no 
means Socialist commune in one of our Eastern departments 
surely already, in taking over the distribution of water, light, 
motor-power, the organization of transport, the use in common 
of agricultural machines, numerous small communities in town 
and country have in their sphere replaced capitalistic property 
by social This progressive socialization of different categories 



52 MODERN SOCIALISM 

of the means of production can only inspire hope and joy in 
the millions of human beings destined thus to rise, by a pro- 
gress governed not by men's caprice, but by the nature of 
things, from the condition of wage-workers to that of co- 
partners in social wealth ; and it would be vain to try rousing 
against the Socialist party the alarms of the fortunate few who 
still have in their hands both the means of production and the 
whole product of their labour. The latter, the small pro- 
prietors, not only are not threatened by the change which the 
Socialist party pursues since their fragments of property 
could not be the object of social appropriation but they will 
benefit proportionally with every other member of society by 
the incorporation of the great industries, one after another, in 
the body of socialized property. 

I say " one after another." No Socialist has ever dreamed 
of transforming the capitalistic regime instantaneously by a 
Elasticity magic wand, nor of building up on a tabula rasa 
biiit ad f the" an ent * re ty new society* Vandervelde, the eminent 
Socialist thinker and great orator of Belgium, warned his 
hypothesis, friends in an article on the collectivist evolution 
against the risk of constructing too hastily and too rigidly at a 
time when science may upset in a moment the very elements 
of life perhaps, as our great chemist, Berthelot, once sug- 
gested, by utterly altering our ways of taking food, or, perhaps s 
by profoundly modifying the conditions of industry through 
unexpected applications of the transmission of energy. In 
speaking thus our friend only brought out the two aspects of 
Socialism swbat forms at once its ideal power and its practical 
greatness. Our philosophers, our ideologues (a fine and a 
right word in its proper place) construct systems ; collectivism 
is an ideal and complete plan of society. But if we look 
upwards, higher and higher, we do not for that lose our foot- 
hold ; we keep in touch with the firm, resisting ground. We 
do not substitute our imaginations for the realities amid which 
we move; and everything we realize is meant to be, and 
must be, the consequence and result of phenomena already 



A. MILLERAND 53 

accomplished. But hypothesis is one of the needful means 
to progress in every kind of knowledge; and it would be a 
strange representation, or rather misrepresentation, of the 
teaching of the geniuses, like Claude Bernard, who have insti- 
tuted the experimental method, to pretend to compel sociologist 
or scientist to erase from his papers the fruitful hypothesis. 

One of our opponents, I fancy M. Mdline himself, once 
found no better way of taxing our friend Jaures with the 
boldness of his views than to call him "the poet . 
of Socialism." Doubtltlss M. Meline scarcely tioVdepends 



fancied, as he flung this trait at our friend, that he on its 

. , . f * , . synthesis of 

was paying him the best and most precious com- human life 

pliment ever received either by Jaures or by the and in- 
party which is proud of including him. Certainly 
he is a " poet " in the grandest sense of the word the supreme 
orator who has thrilled the soul of the artisan and peasant 
democracy with the most moving accents heard by a French 
audience for a hundred years. But it is not given to every 
party to arouse poets and be defended thus. A lost cause 
wrapped in the double prestige of tradition and misfortune 
may know a Berryer. A people arisen to claim its rights or 
defend its soil may borrow the voice of a Mirabeau or a 
Danton, or, a century later, a Gambetta; but the capitalist 
class, wholly tied to the defence of its material interests, with- 
out ideals or beliefs, cannot with all its gold purchase an 
advocate whose voice can win for it the hearts of the people 
whom it exploits. If Socialism to-day dominates and over- 
shadows every party, if it attracts and retains the passionate 
interest of every cultivated mind, if it thrills every generous 
heart, it is because in its large synthesis it embraces every 
manifestation of life, because nothing human is alien to it, 
because it alone offers to-day to our hunger for justice and 
happiness an ideal purely human and apart from all dogma 
separating itself thus unmistakably from the "Christian 
Socialism," which is only a wretched sham Socialism, 1 since, 

1 It is necessary to remind the reader that " Christian Socialism " has 



54. MODERN SOCIALISM 

far from working to set men free, it works only for the rule and 
dominance of a threatened theocracy. 

Socialism does aim at securing for every human being, by 
a beneficent and quite natural transformation, these two 
The methods tw * n ^^ essm g s J liberty and property, of which the 
of Socialism capitalistic regime inevitably robs him. But in thus 
S!tut? eC i n ~ ideating tne en d which our party pursues, I have 
answered beforehand the ridiculous charge, so often 
made, that it expects its ideas to triumph only by violent 
revolution. Our eminent friend, Gabriel Deville, whom the 
Fourth Constituency will send next Sunday to sit with us in the 
Socialist group at the Chamber, said some days ago, strongly 
and definitely, that we could get the social transformation 
from no rebel minority, but from a majority with a purpose. 
Resort to force ? for whom and against whom ? Republicans 
before everything, we do not indulge the crazy idea of appeal- 
ing to a pretender's sham prestige or a dictator's sword to secure 
the triumph of our doctrines. We appeal only to universal 
suffrage. It is the voter whom we want to set economically 
and politically free. We claim only the right of persuading 
him. I do not suppose any one will credit us with the absurd 
intention of taking revolutionary steps against the Senate; 
which a Radical Ministry, had it vacillated less, would have 
sufficed to reduce to reason. No, to realize the immediate 
reforms capable of relieving the lot of the working-class, and 
thus fitting it to win its own freedom, and to begin, as con- 
ditioned by the nature of things, the socialization of the means 
of production, it is necessary and sufficient for the Socialist 
party to endeavour to capture the Government through 
universal suffrage. 

But while in the commune, the department, and the nation 
Socialism works to replace capitalistic by social property, it 
cannot lose sight of the general international character, which 
the development of knowledge, and consequently of human 

an utterly different meaning in nearly every different country, and that M. 
Millerand refers to the Christian Socialism of his own. 



A. MILLERAND 55 

relations, has stamped upon the social problem. I know how 
insincerely our opponents have tried to exploit against us the 
international understanding between the workers, socialist 

Men who know no frontiers when they want to con- internation- 

,, , , _ alism. 

cert profitable agreements between speculators of 

any race, cry out for shame and horror at the thought that workers 
who do not speak the same language can meet to discuss their 
common interests. These patriots have not feared to fling the 
fatherland into our domestic quarrels as a handy argument 
to help their cause. But' the good ! sense of the people has 
done justice to these shameless manoeuvres. At this meeting, 
where our country's single mind, as also her various aspects, 
is so strongly asserted, I need not repeat that we have never 
had the unnatural and insane idea of breaking and throwing 
away that unique instrument of material and moral progress, 
forged by the centuries, which is called the French fatherland. 
No, never ; not when, in a few days' time, we receive with all 
due sympathy and respect Liebknecht, the unfailing champion 
of the Socialistic idea, the brave defender of right, who in 
1871 sacrificed his freedom for his admirable protest against 
the crime of annexing Alsace-Lorraine which the Iron Chan- 
cellor was preparing ; not when we receive the German deputy, 
nor when in a few weeks' time we go to the international 
Congress at London, shall we ever forget that, while inter- 
nationalists, we are Frenchmen and patriots. " Patriots " and 
" internationalists " are two titles that our ancestors of the 
French Revolution were able nobly to combine. 

Such, citizens, are in my opinion the three essential points 
which are necessary and sufficient to characterize a Socialistic 

programme intervention of the State to convert 

f ..... . ....... Summary. 

irom capitalistic into national property the dinerent 

categories of the means of production and exchange in propor- 
tion as they become ripe for social appropriation ; capture of 
Government through universal suffrage ; international under- 
standing between the workers. 



VII 
FRENCH REFORMIST SOCIALISM 

BY A. MlLLERAND 

The following is a preface to a collection of speeches published 
by Millerand under the above title in 1903. The reformist method as 
opposed to the revolutionary, the national interest as beside the 
internationalism of the Marxists, the "solidarity of classes" as 
beside the Marxian class- war, and the expediency of Socialists 
participating in Governments not wholly Socialistic, are the main 
points of controversy handled. The ideas here expressed found not 
a little echo three and a half years later (October, 1906) in the pro- 
gramme adopted by M. Clemenceau as the head of a Ministry, in 
which three reformist Socialists (MM. Millerand, Briand, and Viviani) 
were included. Although that Ministry proved less fertile than might 
have been hoped, its work is continued by one which is at least as 
Socialistic and has M. Briand at its head. 

I HAVE collected a few of the speeches which I have delivered 
in the past ten years, partly by the wish of friends, partly to 
indicate once more the leading characteristics of a policy to 
which at least the merit of continuity will be conceded. 

A party which is not content with ambitions at short range, 
which fixes its gaze high and far, requires an ideal; the 
Socialist party proclaims its own. I once tried to formulate 
it; I was then fortunate enough to secure the assent of all 
fractions of the party, voiced by their accredited representa- 
tives. Some of those who approved me in 1896 have since 
withdrawn their approval. One of their complaints against 
the programme, which they had applauded, is that it won over 
too quickly too many new adherents. I feel this fault to be 
a creditable one. Perhaps the programme only fell into it 
because it was equally removed from vague generalities 

56 



A. MILLERAND 57 

Admitting of every construction, and from false definiteness 
which events may soon belie. 

It is important to determine with the utmost precision the 
direction which we wish to follow. Where are we going? 
What dream of justice, freedom, and happiness is ours? 
By what means and in what shape do we hope to realize it ? 
These questions must be answered, and the answer which we 
give is, I think, unequivocal and unambiguous. 

***** 

In transforming the material world science has simultane- 
ously, by a parallel effect which cannot be escaped, overturned 
the economic conditions of mankind. A chasm has opened 
between the lot of the worker of industry, serf no longer of the 
soil but of the machine, and that of the employer, often an 
impersonal company, whom he serves without knowing him. 
In spite of the progress of philosophy, legislation, and morals, 
there have appeared two opposing classes with economic 
interests which can only be reconciled by the absorption of 
the one in the other. Socialism aims, in the social system, 
at abolishing the classes, as the French Revolution, in the 
political system, resulted in abolishing the orders. It wishes 
the wage-earner to rise to the dignity of a partner. It wishes, 
not that individual property should be abolished in the new 
humanity which is an incomprehensible proposal but, on 
the contrary, that it should be so transformed and enlarged as 
to be for every man a sort of natural and necessary extension 
of himself over things, the indispensable instrument of life and 
development. 

Socialism does not, any more than did the French Revolu- 
tion, propose to legislate for Frenchmen, or Germans, or 
Englishmen, but for men. Everywhere where the same stage 
of civilization has brought with the same greatness the same 
misery, the same transformations seem to it to be rendered 
necessary. Thus, in spite of differences of race and language, 
the sentiment of a common ideal unites across space the 
Socialist proletariate of the two worlds. 



5 S MODERN SOCIALISM 

Although it is sketched in large strokes, this ideal cannot 
therefore without unfairness be reproached as obscure or 
equivocal. Its two essential characteristics, on the contrary, 
are quite clearly marked. It pursues, through an international 
agreement of the workers, the radical transformation of the 
conditions of property, which should cease to be the appanage 
of a certain number of men, and become the lot of all. 

Some Socialists, in every country, have not withstood the 
too natural temptation to grasp the problem more closely, and, 
forestalling time, to build up the whole structure of the future 
city. These Utopias are unembarrassing, and may even be 
useful, if people do not forget to take them for what they are 
works of imagination, whose shifting shapes are daily 
modified by reality. They would be dangerous, they might 
even be fatal, if people were drawn on to claim to crystallize 
in them Socialist action and thought. Experience has shown, 
how inevitably errors become manifest, after a relatively short 
time, even in the constructions of a man of genius. 

If it is, I do not say legitimate, but inherent in the progress 
of all knowledge, that one should use hypotheses, and if the 
collectivist hypothesis, which we use, derives from the very 
development of the capitalistic regime a singular value, still 
its legitimate employment must never blind us into mistaking 
the means for the end. We must beware of becoming the 
prisoners of necessarily variable formulae which must change 
as men progress. Our end is not to erect an immovable 
edifice on a fixed plan according to a prescribed ritual ; it is 
not to build a church for a sect, but to make the world more 
habitable for everybody by effacing in succession the social 
injustices, and by educating a humanity emancipated step by 
step from internal tyrannies as well as external constraints. 
* * * # * 

Education : these few syllables enclose the whole future 
of mankind. It is true, profoundly true, that the emancipation 
of the workers will be the task of the workers themselves ; we 
should understand by that, that they must look only to 



A. MILLERAND 59 

themselves for their liberation, and especially must make them- 
selves able and worthy to work it out. But how? And this 
question surely has a cruel irony under a social regime, where all 
the strength of the worker is daily spent in his master's service 
without his retaining any leisure beyond what repairs for 
to-morrow's effort the organism worn out by to-day's. So 
society, which has the greatest interest in the regular and 
normal march of progress, is compelled to intervene with 
a view to securing for all its members humane conditions 
of work. 

This position is no longer debated as regards children 
and women. The regulation of the working day, so far as 
concerns them, no longer arouses even theoretical opposition. 
The force of logic has led legislation to adopt the same rule 
for men working with them. The time is at hand, when by a 
fortunate necessity the same law will apply to all workers, 
whatever their age or sex, setting them free to be men and 
citizens as well as producers. 

Equally beyond dispute now is the need of regulating 
labour so as to secure health and prevent accidents. Per- 
ceptible improvements have been made in this respect, 
particularly in the great industry; much is left to be won. 
It is no mean advantage to have reached a point where only 
the facts of cases are disputed, and one does not collide with 
the barrier of a pretended principle. 

Thus there has been embodied and moulded the concep- 
tion of a legislation protecting the individual, careful of his 
development, directed towards the defence and the setting in 
operation of every power and all the wealth contained in germ 
in the human being. 

From this higher idea proceed the laws on education of 
every grade, whether they are concerned to furnish every 
child with the small primary capital without which a man 
will live among his fellows like a foreigner to them, or 
whether to organize technical education and apprenticeship, 
or whether to swell the reservoir of superior knowledge 



6a MODERN SOCIALISM 

whence every people draws the elements of its prosperity 
and power. 

It is not enough to arm the individual for the struggle, 
and to take care that the very need of living does not reduce 
him to a machine's part and rob him of all that makes life 
valuable or joyous. Man is an organism no less fragile than 
admirable, beset every yard of the way by accidents and 
failings, whether they come from conflicts with things, from 
imperfections of the social system, or from hereditary taints. 
A whole set of laws is being worked out to prevent or 
minimize the effects of unemployment, illness, infirmity, 
accidents, and old age. At the head of this new code of 
Social Insurance and Prevision might fittingly be inscribed the 
proclamation of the first of the rights of man the right to 
live. On each of its pages it is inspired and vitalized by the 
feeling of solidarity, which makes easy for collective humanity 
steps forward which the isolated individual would be powerless 
even to conceive. 

Association, organization : these two fruitful ideas go side 
by side. A predominant and decisive part must be played by 
them in social evolution. Through them the weak things 
of the proletariate will be joined together, and become aware 
of their strength. Along with power will come knowledge of 
duties and responsibilities. 

Trade-unions, co-operative societies : under these two 
principal forms, which the proletariate employs with more 
or less ease and success according to its degree of education, 
the first grouping takes place. 

But the time is, I feel confident, not far off when people 
will account it in the general interest that the world of workers 
should not be organized solely outside the factory. The Bill 
on the friendly regulation of labour disputes, which I introduced, 
aims precisely at replacing the inorganic mass of workers of the 
middle-sized and the great industry exposed in war (I mean 
strikes), as in peace, to every impulsive influence by a methodi- 
cal organization making the workers of every factory into an 



A. MILLERAND 61 

ordered group, represented by regular delegates, having 
habitual and normal relations with the management, fitted for 
taking deliberate and reflective resolutions. The adoption 
of its principle will save at once the special interests of the 
workers and those, inseparable from them, of national 
production. 

* * * * # 

I touch here a subject which does not fail to excite and 
even to scandalize a certain number of our friends. The 
national interest, the solidarity of classes are these questions 
about which a Socialist has a right to be anxious without 
betraying the ideal which he claims to serve, the triumph of a 
humanity freed from class-wars and from wars of nations ? 

History is made up of elements too numerous and complex 
for any one to be able, without vanity, to claim to fix a hard- 
and-fast date for the triumph of his ideas. We fulfil our whole 
duty if we work in our station, within the limits of our strength, 
following the law of our nature, to prepare its victory. I 
have said how high the Socialist ideal is, and how it is not 
enclosed in the narrow bounds which time and circumstances 
have fixed for any given nation. All the same, it spreads 
from men to their neighbours, and no bad way of working for 
its extension is to take pains first to win over one's fellow- 
citizens. 

How, then, can this propaganda be determined irrespectively 
of the environment wherein it is carried on? Can method 
and tactics be the same under different or even opposite 
regimes 1 If it is true that the Republic is the political 
formula of Socialism, it follows, of course, that in a country 
where Socialism has achieved the immense step forward of 
realizing its political formula, its action and procedure, once it 
possesses republican forms and universal suffrage, will assume 
quite a special aspect and character. This means that it is not 
only the right but the imperative duty of Social Democracy in 
France to adapt its method to the conditions of the political 
regime in which it moves, It would betray the first of its 



62 MODERN SOCIALISM 

duties if it took refuge in mere phrases of revolution in order 
to be saved the responsibilities and burdens implied by the 
reformist method and the pursuit of immediate results. It 
would, by the same act, sacrifice the primordial interests of 
the proletariate by declining the effort which should, little by 
little, realize the aggregate of improvements which I tried to 
resume in an exact summary. 

But how will the French Socialist party have the right to 
call the republican regime its own, how will it handle practi- 
cally that incomparable instrument of reforms, if it affects 
keeping outside of the Republican party's life and means to 
isolate itself in the barren part of a systematic critic ? It will 
only win that authority over the nation without which our 
views cannot be realized, on condition that it remains neither 
alien nor indifferent to any of its emotions and aspirations. 
In domestic affairs it must take sides in the battle in which 
the Republic is engaged, and formulate its opinion, inspiring 
itself as how should it else ? by its own ideal, but also by 
the needs, the thoughts, and the traditions of the Republican 
democracy, which it continues and from which it inherits. It 
will not neglect either the good order and prosperity of the 
public finances, first condition of all social reform, or the 
maintenance and development of the national production. 
Public works, improvements destined to promote industry, 
commerce, and agriculture, judicious management and utiliza- 
tion of our colonial domain, all these are questions which 
will claim its scrutiny and retain its attention. It will be the 
attentive and zealous servant of the nation's greatness and 
prosperity. 

Its patriotism the more sincere because it hates the noisy 
declamations of Chauvinist politicians has nothing to fear 
from its ardent love of peace and of mankind. Until that 
unknown date when the Governments agree to lay aside in 
concert the heavy burden of military expenses, isolated dis- 
armament would be worse than a folly ; it would be a crime 
against the very ideal whose foremost soldier the Socialists see 



A. MILLERAND 63 

France to be. While applying themselves to uphold and 
strengthen our diplomacy in the ways of peace, to draw from 
past conventions every effect of union and concord which they 
admit, and to get new treaties concluded tightening the bonds 
of friendship and solidarity between nations, they will watch 
no less carefully to preserve the country's independence un- 
endangered by any aggression, through the power of its arms 
and the security of its alliances. While preparing for the 
future, they will not forget either the duties created for them 
by the past or the obligations imposed by the present. 
***** 

To pursue successfully this realistic and ideal policy, to 
make it yield all its fruits, the Socialist party must clearly 
acknowledge its responsibilities. 

I have not dissimulated the end towards which it marches, 
and I am acquainted with the argument that Socialism can, 
and indeed should, call itself " revolutionary," since in fact the 
disappearance of the wage-system will be the most real and 
radical of revolutions. Words do not frighten me ; but I 
dread equivocations. And what equivocation could be more 
unfortunate than that of a party masked by a title which 
contradicts formally its spirit and its method ? If we reckon 
violence reprehensible as well as useless, if legal reforms 
appear to us at once as our immediate objective and as the 
sole practical procedure to bring us nearer our distant goal, let 
us, then, have the courage, not a difficult courage, to call our- 
selves by our own name, " reformists," since reformists we are. 
Let us take our courage the whole way ; and having declared 
for the reformist method, let us dare to accept its conditions 
and consequences. Long before yesterday the French Socialist 
party gave the first place in its programme to the capture of 
government; long before to-day it passed from theories to 
acts, and sent its campaigners into town-halls, into depart- 
mental assemblies, into Parliament; it did not do so without 
resigning itself to the daily compromises which are the price 
of action, and allying itself with the parties near to it. Having 



6| MODERN SOCIALISM 

gone so far, being persuaded more than ever of the utility and 
necessity of a method which has proved its value in experience, 
by what aberration should it desert that method at the very 
moment when it is becoming most effective ? !By what incon- 
sistency should it consent to canvass every mandate, and yet 
rigorously forbid itself to join in the Government, and take, 
along with the highest responsibilities, the most certain power ? 
Such an illogical course, if possible to continue, would soon 
ruin the credit and influence of the party weak enough and 
sufficiently uncertain of itself to commit it. To put the people 
off to the mysterious date when a sudden miracle will change 
the face of the world, or day by day, reform by reform, by a 
patient and stubborn effort to win step by step all progress 
those are the two methods which we must choose between. 

-Faithful to its principles and to the method which is its 
own, equally careful not to arouse chimerical hopes, and not 
to break its promises, French reformist Socialism will be able 
to assume every responsibility ; it will not decline any of the 
burdens imposed on it by its deep feeling of duty towards its 
ideal and towards its country. 



VIII 

THE LABOUR QUESTION FROM THE 
SOCIALIST STANDPOINT 

BY WILLIAM MORRIS 

This lecture was one of a series delivered in Scotland in the 
summer of 1886, in which the Secretary of the Amalgamated Society 
of Engineers, the London Manager of the Co-operative Wholesale 
Society, Professor Foxwell, Professor Patrick Geddes, and Dr. 
Alfred Russell Wallace, also took part. 

William Morris's definite accession to Socialism may be dated 
from the beginning of 1883. He then joined the Social Democratic 
Federation ; but in December, 1885, founded the Socialist League, 
whose organ, the "Commonweal," he edited till 1889. In 1890 he 
left the League, which soon afterwards collapsed. 

His work represents the first revival of Socialism in England 
through the importation of the Marxist doctrine. It also derives a 
large element from his personal genius, which, while missing the 
mass of workers at which it was aimed, has left its mark upon 
nearly all the leaders. 

I HAVE been asked to give you the Socialist view on the 
Labour Question. Now, in some ways that is a difficult matter 
to deal with far beyond my individual capacities and would 
also be a long business ; yet in another way, as a matter of 
principle, it is not difficult to understand or long to tell of, and 
it does not need previous study or acquaintance with the works 
of specialists or philosophers. Indeed, if it did, it would not 
be a political subject, and I hope to show you that it is pre- 
eminently political in the sense in which I should use the word ; 

65 r 



66 MODERN SOCIALISM 

that is to say, that it is a matter which concerns every one, and 
has to do with the practical everyday relations of his life, and 
that not only as an individual, but as a member of a body 
corporate, nay, as a member of that great corporation 
humanity. Thus considered it would be hard indeed if it 
could not be understood readily by a person of ordinary intelli- 
gence who can bring his mind to bear upon prejudice. Such 
a person can learn the basis of the opinion in even an hour's 
talk, if the matter be clearly put before him : it is my task to 
attempt this; and whether I fail or succeed, I can at least 
promise you to use no technical phrases which would require 
explanation ; nor will I, as far as I can help, go into any specu- 
lative matter, but will be as plain and practical as I can be. 

Yet I must warn you that you may be disappointed when 
you find that I have no elaborate plan, no details of a new 
society to lay before you, that to my mind to attempt this would 
be putting before you a mere delusion. What I ask you to 
consider is in the main the clearing away of certain obstacles 
that stand in the way of the due and unwasteful use of labour 
a task not light, indeed, nor to be accomplished without the 
most strenuous effort in the teeth of violent resistance, but yet 
not impossible for humanity as we know it, and, as I firmly 
believe, not only necessary, but as things now are, the one 
thing essential to be undertaken. 

Now, you all know that, taking mankind as a whole, it 
is necessary for man to labour in order to live. Certainly 
not all things that we enjoy are the works of man's labour; 
the beauty of the earth, and the action of Nature on our 
sensations, are always here for us to enjoy, but we can only do 
so on the terms of our keeping ourselves alive and in good 
case by means of labour, and no inventions can set aside that 
necessity. The merest savage has to pluck the berry from the 
tree, or dig up the root from the ground before he can enjoy 
his dog-like sleep in sun or shade ; and there are no savages 
who have not got beyond that stage, while the progressive races 
of mankind have for many ages got a very long way beyond it, so 



WILLIAM MORRIS 67 

that we have no record of any time when they had not formed 
some sort of society, whose aim was to make the struggle with 
Nature for subsistence less hard than it otherwise would have 
been, to win a more abundant livelihood from her. 

We cannot deal at any length with the historical develop- 
ment of society ; our object is simply to inquire into the con- 
stitution of that final development of society under which we 
live. But one may first ask a few questions : ist, Since the 
community generally must labour in order that the individuals 
composing it may subsist, 'and labour harder in order that they 
may attain further advantages, ought not a really successful 
community so to arrange that labour that each capable person 
should do a fair share of it and no more ? 2nd, Should not a 
really successful community established surely for the benefit 
of all its members arrange that every one who did his due 
share of labour should have his due share of the wealth earned 
by that labour? 3rd, If any labour was wasted, such waste 
would throw an additional burden on those who produced 
what was necessary and pleasant to existence. Should not a 
successful community, therefore, so organize its labour that it 
should not be wasted ? You must surely answer " Yes " to each 
of these three questions. I will assert, then, that a successful 
society a society which fulfilled its true functions would take 
care that each did his due share of labour, that each had his 
due share of wealth resulting from that labour, and that the 
labour of persons generally was not wasted. I ask you to re- 
member those three essentials of a successful society through- 
out all that follows, and now to let me apply them as a test of 
success to that society in which we live, the latest development 
of so many ages of the struggle with Nature, our elaborate and 
highly organized civilization. 

In our society, does each capable person do his fair share 
of labour ? Is his share of the wealth produced proportionate 
to his labour ? Is the waste of labour avoided in our society ? 

You may, perhaps, hesitate in your answer to the third 
question ; you cannot hesitate to say " No " to the two first. I 



68 MODERN SOCIALISM 

think, however, I shall be able to show you that much labour 
is wasted, and that, therefore, our society fails in the three 
essentials necessary for a successful society. Our civilization, 
therefore, though elaborate and highly organized, is a failure ; 
that is, supposing it to be the final development of society, as 
some people, nay, most people, suppose it to be. 

Now a few words as to the course of events which have 
brought us to the society of the present day. In periods 
almost before the dawn of continuous history, the early pro- 
gressive races from which we are descended were divided into 
clans or families, who held their wealth, such as it was, in 
common within the clan, while all outside the clan was hostile, 
and wealth not belonging to the clan was looked upon as prize 
of war. There was consequently continual fighting of clan 
with clan, and at first all enemies taken in war were slain ; but 
after a while, as man progressed and got defter with his hands, 
and learned how to make more effective tools, it began to be 
found out that, so working, each man could do more than 
merely sustain himself; and then some of the prisoners of war, 
instead of being slain on the field, were made slaves of; they 
had become valuable for work, like horses. Out of the wealth 
they produced their masters or owners gave them sustenance 
enough to live on and took the rest for themselves. Time 
passed, and the complexity of society grew, the early barbarism 
passed through many stages into the ancient civilizations, of 
which Greece and Rome were the great representatives ; but 
this civilization was still founded on slave labour ; most of its 
wealth was created by men who could be sold in the market 
like cattle. But as the old civilizations began to decay, this 
slave labour became unprofitable; the countries comprised 
in the Roman Empire were disturbed by constant war; the 
Governments, both central and provincial, became mere tax- 
gathering machines, and grew so greedy that things became 
unbearable. Society became a mere pretext for tax-gathering, 
and fell to pieces, and chattel slavery fell with it, since under 
all these circumstances slaves were no longer valuable. 



WILLIAM MORRIS 69 

Then came another change. A new society was formed, 
partly out of the tribes of barbarians who had invaded the 
Roman Empire, and partly out of the fragments of that empire 
itself; the feudal system arose, bearing with it new ideas, 
which I have not time to deal with here and now. Suffice it 
to say, that in its early days mere chattel slavery gave place to 
serfdom. Powerful men, privileged men, had not forgotten 
that men can produce more by a day's labour than will keep 
them alive for a day ; so now they settled their labourers on 
certain portions of land, stocked their land with them, in fact, 
and on these lands they had leave to live as well as they might 
on the condition that they should work a certain part of their 
time on the land which belonged to their lords. The average 
condition of these serfs was better than that of the chattel 
slaves. They could not be bought and sold personally, they 
were a part of the manor on which they lived, and they had as a 
class a tendency to become tenants by various processes. In 
one way or another these serfs got gradually emancipated, 
and during a transitional period, lasting through the two last 
centuries of the Middle Ages, the fourteenth and fifteenth 
centuries, the labour classes were in a far better position than 
they had been before, and in some ways than they have been 
since, suffering more from spasmodic arbitrary violence than 
from chronic legal oppression. The transition from this period 
to our own days is one of the most interesting chapters of 
history ; but it is impossible for me to touch on it here. All I 
can say is, that the emancipated serfs formed one of the 
elements that went to make up our present middle class, and 
that a new class of workers grew up beneath them men who 
were not owned by any one, who were bound by no legal ties 
to such and such a manor, who might earn what livelihood 
they could for themselves under certain conditions, which I 
will presently try to lay before you, and which are most 
important to be considered, for this new class of so-called 
free labourers has become our modern working-class. 

Now it will be clear to you, surely, how much and how 



70 MODERN SOCIALISM 

grievously both the classical period, with its chattel slavery, 
and the feudal system, with its serfdom, fell short of the 
society which we have set before us as reasonably successful. 
In each of them there was a class obviously freed from the 
necessity of labour, by means of the degradation of another 
class which laboured excessively and reaped but a small 
reward for its excessive labour. Surely there was something 
radically wrong in these two societies. From the fact that 
labour is necessary for man's life on the earth, and that 
Nature yields her abundance to labour only, one would be 
inclined to deduce the probability that he who worked most 
would be the best off; but in these slave and serf societies 
the reverse was the case : the man of leisureless toil lived 
miserably, the man who did nothing useful lived abundantly. 
Then, again, as to our third test, was there no waste of labour? 
Yes, indeed, there was waste most grievous. I have said that 
the slave-owner or the lord of the manor did nothing useful, 
and yet he did something he was bound to do something, 
for he was often energetic, gifted, and full of character he 
made war ceaselessly, consuming thereby the wealth which his 
slaves or his serfs created, and forcing them to work the more 
grievously. Here was waste enough, and lack of organization 
of labour. 

Well, all this people lound no great difficulty in seeing, and 
few would like, publicly at least, to confess a regret for these 
conditions of labour, although in private some men, less 
hypocritical or more logical than the bulk of reactionists, 
admit that they consider the society of cultivated men and 
chattel slaves the best possible for weak human nature. Yet 
though we can see what has been, we cannot so easily see 
what is ; and I admit that it is especially hard for people in 
our civilization, with its general freedom from the ruder 
forms of violence, its orderly routine life, and, in short all, that 
tremendous organization whose very perfection of continuity 
prevents us from noticing it, I say it is hard for people under 
the quiet order and external stability of modern society to note 



WILLIAM MORRIS 71 

that much the same thing is going on in the relations of 
employers to the employed, as went on under the slave 
society of Athens, or under the serf-sustained baronage of 
the thirteenth century. 

For I assert that with us, as with the older societies, those 
who work hardest fare the worst, those who produce the least 
get the most ; while as to the waste of labour that goes on, 
the waste of times past is as nothing compared with what is 
wasted to-day. 

I must now justify thxs view of mine, and if possible get 
you to agree with it, by pointing out to you how society at the 
present day is constituted. 

Now, as always, there are only two things essential to the 
production of wealth labour and raw material ; every one can 
labour who is not sick or in nonage, therefore every one, 
except those, if he can get at raw material, can produce 
wealth ; but without that raw material he cannot produce any- 
thing anything, that is, that man can live upon; and if he 
does not labour he must live at the expense of those that do ; 
unless, therefore, every one can get at the raw material and 
instruments of production, the community in general will be 
burdened by the expense of so many useless mouths, and the 
sum of its wealth will be less than it ought to be. But in our 
civilized society of to-day the raw material and the instruments 
of production are monopolized by a comparatively small 
number of persons, who will not allow the general population 
to use them for production of wealth unless they pay them 
tribute for doing so; and since they are able to exact this 
tribute they themselves are able to live without producing, 
and consequently are a burden on the community. Nor are 
these monopolists content with exacting a bare livelihood from 
the producers, as mere vagabonds and petty thieves do ; they 
are able to get from the producers in all cases an abundant 
livelihood, including most of the enjoyments and advantages 
of civilization, and in many cases a position of such power 
that they are practically independent of the community, and 



72 MODERN SOCIALISM 

almost out of reach of its laws although, indeed, the greater 
part of those laws were made for the purpose of upholding this 
monopoly and wherever necessary they do now use the 
physical force, which by one means or another they have 
under their control, for such upholding. 

These monopolists, or capitalists, as one may call them 
broadly (for I will not at present distinguish the land capitalists 
from the money capitalists), are in much the same position as 
the slave-owners of ancient Greece and Rome, or the serf- 
masters of the thirteenth century ; but they have this advantage 
over them, that though really they sustain their position by 
mere compulsion, just as the earlier masters did, that com- 
pulsion is not visible as the compulsion of the earlier 
times was, and it is very much their business to prevent 
it becoming visible, as may be well imagined. But as I 
am against monopoly and in favour of freedom, I must 
try to get you to see it; since seeing it is the first step 
towards feeling it, which in its turn is sure to lead to your 
refusing to bear it. 

I have spoken of the tribute which the capitalists exact as 
the price of the use of those means of production which ought 
to be as free to all as the air we breathe is, since they are as 
necessary to our existence as it is. How do they exact the 
tribute ? They are, to start with, in a good position, you see, 
because, even without any one's help, they could use the labour- 
power in their own bodies on the raw material they have, and 
so earn their livelihood ; but they are not content with that, 
as I hinted above they are not likely to be, because their 
position, legalized and supported by the whole physical force 
of the State, enables them " to do better for themselves," 
as the phrase goes they can use the labour-power of the 
disinherited, and force them to keep them without working 
for production. Those disinherited, however, they must keep 
alive to labour, and they must allow them also opportunity for 
breeding these are necessities that pressed equally on the 
ancient slave-owner or the mediaeval lord of the manor, or, 



WILLIAM MORRIS 73 

indeed, on the owner of draught cattle ; they must at least 
do for the workers as much as for a machine, supply them 
with fuel to enable them to work; nor need they do more 
if they are dealing with men who have no power of resistance. 
But these machines are human ones, instinct with desires 
and passions, and therefore they cannot help trying to better 
themselves; and they cannot better themselves except at 
the expense of the masters, because whatever they produce 
more than the bare necessaries of life the masters will at once 
take from them if they f can ; therefore they have always 
resisted the full exercise of the privilege of the masters, and 
have tried to raise their standard of livelihood above the 
mere subsistence limit. Their resistance has taken various 
forms, from peaceful strikes to open war, but it has always 
been going on, and the masters, when not driven into a corner, 
have often yielded to it, although unwillingly enough; but 
it must be said that mostly the workers have claimed little 
more than mere slaves would, who might mutiny for a bigger 
ration. For, in fact, this wage paid by our modern masters is 
nothing more than the ration of the slave in another form ; and 
when the masters have paid it, they are free to use all the rest 
that the workers produce, just as the slave-owner takes all that 
the slave produces. Remember at this point, therefore, that 
everything more than bare subsistence which the workers 
make to-day, they make by carrying on constant war with their 
masters. I must add that their success in this war is often 
more apparent than real, and too often it means little more 
than shifting the burden of extreme poverty from one group 
of the workers to another; the unskilled labourers, of whom 
the supply is unlimited, do not gain by it, and their numbers 
have a tendency to increase, as the masters, driven to their 
shifts, use more and more elaborate machines in order to dis- 
pense with the skilled labour, and also use the auxiliary labour 
of women and children, to whom they do not pay subsistence 
wages, thereby keeping down the wages of the head of the 
family, and depriving him and them of the mutual help and 



74 MODERN SOCIALISM 

comfort in the household, which would otherwise be gained 
from them, 

Thus, then, the capitalists, by means of their monopoly of 
the means of production, compel the worker to work for less 
than his due share of the wealth which he produces, that is, 
for less than he produces ; he must work, he will die else, and 
as they are in possession of the raw material, he must agree to 
the terms they enforce upon him. This is the " free contract " 
of which we hear so much, and which, to speak plainly, is a 
capitalist lie. There is no way out of this freedom save rebellion 
of some kind or other strike-rebellion, which impoverishes 
the workers for the time, whether they win the strike or lose it ; 
or the rebellion of open revolt, which will be put down always, 
until it is organized for a complete change in the basis of 
society. 

Now to show you another link or two of the chain which 
binds the workers. There is one thing which hampers this 
constant struggle of the workers towards bettering their con- 
dition at the expense of their masters, and that is competition 
for livelihood amongst them. I have told you that unskilled 
labour is practically unlimited; and machines, the employ- 
ment of women and children, long hours of work, and all 
that cheapening of production so much bepraised now, bring 
about this state of things, that even in ordinary years there are 
more hands than there is work to give them. This is the 
great instrument of compulsion of modern monopoly } people 
undersell one another in our modern slave-market, so that the 
employers have no need to use any visible instrument of com- 
pulsion in driving them towards work ; and the invisibility of 
this whip the fear of death by starvation has so muddled 
people's brains, that you may hear men, otherwise intelligent, 
e.g., answering objections to the uselessness of some occupa- 
tion by saying, " But, you see, it gives people employment," 
although they would be able to see that if three of them had 
to dig a piece of ground, and one of them knocked off, and 
was "employed " in throwing chuckie stones into the water, the 



WILLIAM MORRIS 75 

other two would have to do his share of the work as well as 
their own. 

Another invisible link of the chain is this, that the workman 
does not really know his own master j the individual employer 
may be, and often is, on good terms with his men, and really 
unconscious of the war between them, although he cannot 
fail to know that if he pays more wages to his men than other 
employers in the same line of business as himself do, he will 
be beaten by them. But the workman's real master is not his 
immediate employer, but his class, which will not allow even 
the best-intentioned employer to treat his men otherwise than 
as profit-grinding machines. By his profit, made out of the 
unpaid labour of his men, the manufacturer must live, unless he 
gives up his position and learns to work like one of his own 
men, which, indeed, as a rule he could not do, as he has usually 
not been taught to do any useful work ; therefore, as I have 
said, he must reduce his wages to the lowest point he can, 
since it is on the margin between his men's production and 
their wages that his profit depends ; his class, therefore, com- 
pels him to compel his workmen to accept as little as possible. 
But further, the workman is a consumer as well as a producer ; 
and in that character he has not only to pay rent to a landlord 
(and far heavier proportionately than rich people have to pay), 
and also a tribute to the middleman who lives without pro- 
ducing and without doing service to the community, by passing 
money from one pocket to another, but he also has to pay (as 
consumer) the profits of the other manufacturers who super- 
intend the production of the goods he uses. Again, as a mere 
member of society, a should-be citizen, he has to pay taxes, and 
a great deal more than he thinks ; he has to pay for wars, past, 
present, and future, that are never meant to benefit him, but 
to force markets for his masters, nay, to keep him from 
rebellion, from taking his own at some date ; he has also to 
pay for the thousand and one idiocies of parliamentary 
government, and ridiculous monarchical and official state for 
the mountain of precedent, nonsense, and chicanery, with 



76 MODERN SOCIALISM 

its set of officials, whose business it is, under the name of 
law, to prevent justice being done to any one. In short, in 
one way or another, when he has by dint of constant labour 
got his wages into his pocket, he has them taken away 
from him again by various occult methods, till it comes to 
this at last, that he really works an hour for one-third of an 
hour's pay ; while the two-thirds go to those who have not 
produced the wealth which they consume. 

Here, then, as to the first and second conditions of a 
reasonable society : (i) That the labour should be duly appor- 
tioned; (2) that the wealth should be duly apportioned. Our 
society does not merely fail in them, but positively inverts 
them ; with us, those who consume most produce least, those 
who produce most consume least. 

There yet remains something to be said on the third con- 
dition of a fair state of society : that it should look to it that 
labour be not wasted. How does civilization fare in this 
respect? I have told you what was the occupation of the 
ancient slave-holders, set free by slave-labour from the necessity 
of producing it was fighting with each other for the aggran- 
disement, in earlier times of their special city, in later of their 
own selves ; similarly, the mediaeval baron, set free from the 
necessity of producing by the labour of the serfs who tilled 
his lands for him, occupied himself with fighting for more 
serf-tilled land either for himself or for his suzerain. In our 
own days we see that there is a class freed from the necessity 
of producing by the tribute paid by the wage-earner. What 
does our free class do ? how does it occupy the lifelong leisure 
which it forces toil to yield to it ? 

Well, it chiefly occupies itself in war, like those earlier 
non-producing classes, and very busy it is over it. I know, 
indeed, that there is a certain portion of the dominant class 
that does not pretend to do anything at all, except perhaps 
a little amateur reactionary legislation, yet even of that group 
I have heard that some of them are very busy in their estate 
offices trying to make the most of their special privilege, the 



WILLIAM MORRIS 77 

monopoly of the land ; and, taking them altogether, they are 
not a very large class. Of the rest some are busy in taxing us 
and repressing our liberties directly, as officers in the army and 
navy, magistrates, judges, barristers, and lawyers; they are the 
salaried officers on the part of the masters in the great class 
struggle. Other groups there are, as artists and literary men, 
doctors, schoolmasters, etc., who occupy a middle position 
between the producers and the non-producers ; they are doing 
useful service, and ought to be doing it for the community at 
large, but practically they are only working for a class, and in 
their present position are little better than hangers-on of the non- 
producing class, from whom they receive a share of their privi- 
lege, together with a kind of contemptuous recognition of their 
position as gentlemen heaven save the mark ! But the great 
mass of the non-producing classes are certainly not idle in the 
ordinary sense of the word ; they could not be, for they include 
men of great energy and force of character, who would, 
as all reasonable men do, insist on some serious or exciting 
occupation ; and I say once again their occupation is war, 
though it is "writ large," and called competition. They 
are, it is true, called organizers of labour; and sometimes 
they do organize it, but when they do they expect an extra 
reward for so doing outside their special privilege. A great 
many of them, though they are engaged in the war, sit at home 
at ease, and let their generals, their salaried managers to 
wit, wage it for them I am meaning here shareholders, or 
sleeping-partners but whenever they are active in business 
they are really engaged in organizing the war with their com- 
petitors, the capitalists in the same line of business as them- 
selves ; and if they are to be successful in that war they must 
not be sparing of destruction, either of their own or of other 
people's goods ; nay, they not unseldom are prepared to further 
the war of sudden, as opposed to that of lingering, death, and 
of late years they have involved pretty nearly the whole of 
Europe in attacks on barbarian or savage peoples, which are 
only distinguishable from sheer piracy by their being carried 



78 - MODERN SOCIALISM 

on by nations instead of individuals. But all that is only by 
the way ; it is the ordinary and necessary outcome of their 
operations that there should be periodical slackness of trade 
following on times of inflation, from the fact that every one 
tries to get as much as he can of the market to himself at the 
expense of every one else, so that sooner or later the market is 
sure to be overstocked, so that wares are sold sometimes at 
less than the cost of production, which means that so much 
labour has been wasted on them by misdirection. Nor is that 
all ; for they are obliged to keep an army of clerks and such- 
like people, who are not necessary either for the production of 
goods or their distribution, but are employed in safeguarding 
their master's interests against their master's competitors. The 
waste is further increased by the necessity of these organizers 
of the commercial war for playing on the ignorance and 
gullibility of the customers by two processes, which in their 
perfection are specialities of the present century, and even, it 
may be said, of this latter half of it to wit, adulteration and 
puffery. It would be hard to say how much ingenuity and pains- 
taking have been wasted on these incidents in the war of 
commerce, and I am wholly unable to get any statistics of 
them ; but we all know that an enormous amount of labour is 
spent on them, which is at the very best as much wasted as if 
those engaged on it were employed in digging a hole and filling 
it up again. 

But, further, there is yet another source of waste involved 
in our present society. The grossly unequal distribution of 
wealth forces the rich to get rid of their surplus money by 
means of various forms of folly and luxury, which means 
further waste of labour. Do not think I am advocating 
asceticism. I wish us all to make the utmost of what we can 
obtain from Nature to make us happier and more contented 
while we live ; but, apart from reasonable comfort and real 
refinement, there is, as I am sure no one can deny, a vast 
amount of sham wealth and sham service created by our 
miserable system of rich and poor, which makes no human 



WILLIAM MORRIS 79 

being the happier on the one hand, while on the other it 
withdraws vast numbers of workers from the production of 
real utilities, and so casts a heavy additional burden of labour 
on those who are producing them. I have been speaking 
hitherto of a producing and a non-producing class, but I have 
been quite conscious all the time that though the first class 
produces whatever wealth is created, a very great many of 
them are prevented from producing wealth at all, are being 
set to nothing better than turning a wheel that grinds nothing 
save their own lives. Nay, worse than nothing. I hold 
that this sham wealth is not merely a negative evil (I mean in 
itself), but a positive one. It seems to me that the refined 
society of to-day is distinguished from all others by a kind of 
gloomy cowardice a stolid but timorous incapacity of enjoy- 
ment. He who runs may read the record of the unhappy 
rich not less than that of the unhappy poor, in the futility 
of their amusements and the degradation of their art and 
literature. 

Well, then, the third condition of a reasonable society is 
violated by our present so-called society; the tremendous 
activity, energy, and invention of modern times is to a great 
extent wasted; the monopolists force the workers to waste 
a great part of their labour-power, while they waste almost 
the whole of theirs. Our society, therefore, does not fulfil 
the true functions of society. Now, the constitution of all 
society requires that each individual member of it should yield 
up a part of his liberty in return for the advantages of mutual 
help and defence ; yet at bottom that surrender should be 
part of the liberty itself; it should be voluntary in essence. 
But if society does not fulfil its duties towards the individual, 
it wrongs him; and no man voluntarily submits to wrong 
nay, no man ought to. The society, therefore, that has 
violated the essential conditions of its existence must be 
sustained by mere brute force ; and that is the case of our 
modern society, no less than that of the ancient slave-holding 
and the mediaeval serf-holding societies. As a practical 



80 MODERN SOCIALISM 

deduction, I ask you to agree with me that such a society 
should be changed from its base up, if it be possible. And, 
further, I must ask how, by what, and by whom, such a revolu- 
tion can be accomplished ? But before I set myself to deal 
with these question-, I will ask you to believe that, though I 
have tried to argue the matter on first principles, I do not 
approach the subject from a pedantic point of view. If I 
could believe that, however wrong it may be in theory, our 
present system works well in practice, I should be silenced. 
If I thought that its wrongs and anomalies were so capable of 
palliation, that people generally were not only contented but 
were capable of developing their human faculties duly under 
it, and that we were on the road to progress without a great 
change, I for one would not ask any one to meddle with it. 
But I do not believe that, nor do I know of any thoughtful 
person that does. In thoughtful persons I can see but two 
attitudes ; on the one hand the despair of pessimism, which I 
admit is common, and on the other a desire and hope of 
change. Indeed, in a year like the present, when one hears 
on all sides and from all classes of what people call depression 
of trade, which, as we too well know, means misery at least 
as great as that which a big war bears with it ; and when on 
all sides there is ominous grumbling of the coming storm, the 
workers unable to bear the extra burden laid upon them by 
the "bad times," in such a year there is, I do not say no 
hope, but at least no hope except in those changes, the tokens 
of which are all around us. 

Therefore, again I ask how, or by what, or by whom, the 
necessary revolution can be brought about? What I have 
been saying hitherto has been intended to show you that 
there has always been a great class struggle going on, which 
is still sustained by our class of monopoly and our class of 
disinheritance. It is true that in former times no sooner was 
one form of that class struggle over than another took its 
place; but in our days it has become much simplified, and 
has cleared itself by progress through its various stages of 



WILLIAM MORRIS 81 

mere accidental circumstances. The struggle for political 
equality has come to an end, or nearly so ; all men are (by a 
fiction, it is true) declared to be equal before the law, and 
compulsion to labour for another's benefit has taken the 
simple form of the power of the possessor of money, who is 
all-powerful ; therefore if, as we Socialists believe, it is certain 
that the class struggle must one day come to an end, we are 
so much nearer to that end by the passing through of some of 
its necessary stages ; history never returns on itself. 

Now, you must not suppose, therefore, that the revolutionary 
struggle of to-day, though it may be accompanied (and neces- 
sarily) by violent insurrection, is paralleled by the insurrections 
of past times. A rising of the slaves of the ancient period, 
or of the serfs of the mediaeval times, could not have been 
permanently successful, because the time was not ripe for such 
success, because the growth of the new order of things was 
not sufficiently developed. It is indeed a terrible thought 
that, although the burden of injustice and suffering was almost 
too heavy to be borne in such insurrectionary times, and 
although all popular uprisings have right on their side, they 
could not be successful at the time, because there was nothing 
to put in the place of the unjust system against which men 
were revolting. And yet it is true, and it explains the fact 
that the class antagonism is generally more felt when the 
oppressed class is bettering its condition than when it is at 
its worst. The consciousness of oppression then takes the 
form of hope, and leads to action, and is, indeed, the token of 
the gradual formation of a new order of things underneath the 
old decaying order. 

Most thoughtful people are conscious of the fact that the 
tendency of the times is to make the labour classes the great 
power of the epoch, in the teeth of the other fact that labour 
is at least as directly under the domination of a privileged 
class as ever it was. Now these two facts taken together : the 
obvious uprising of the workers in the scale, and their being 
face to face with a class that lives by exploiting their labour, 

G 



8z MODERN SOCIALISM 

these two facts seem to us Socialists to show that one of these 
classes must give way, and that this giving way must mean 
that one of those classes must be absorbed in the other, and 
so the class-war be ended. If that position be accepted, it is 
clear that the class that must come alive out of the struggle 
must be the producing class, the useful class; therefore the 
Socialist's view of the labour question is that a new society 
is in course of development from the working-classes the 
producing classes, more properly and that the other classes 
which now live on their labour will melt into that class. The 
result of that will be, that, so far as society has any conscious 
organization, it will be an instrument for the arrangement of 
labour so as to produce wealth from natural material, and to 
distribute the wealth when produced without waste of labour ; 
that is to say, it will satisfy those ideal conditions of its reason 
for existence which I began by putting before you. 

I told you that I was not prepared to give you any details 
of the arrangement of a new state of society ; but I am pre- 
pared to state the principles on which it would be founded, 
and the recognition of which would make it easy for serious 
men to deal with the details of arrangement. Socialism asserts 
that every one should have free access to the means of pro- 
duction of wealth the raw material and the stored-up force 
produced by labour; in other words, the land, plant, and 
stock of the community, which are now monopolized by certain 
privileged persons, who force others to pay for their use. This 
claim is founded on the principle which lies at the bottom of 
Socialism, that the right to the possession of wealth is conferred 
by the possessor having worked towards its production, and 
being able to use it for the satisfaction of his personal needs. 
The recognition of this right will be enough to guard against 
mere confusion and violence. The claim to property on any 
other grounds must lead to what is in plain terms robbery; 
which will be no less robbery because it is organized by a 
sham society, and must be no less supported by violence 
because it is carried on under the sanction of the law. 



WILLIAM MORRIS 83 

Let me put this with somewhat more of detail. No man 
has made the land of the country, nor can he use more than a 
small portion of it for his personal needs ; no man has made 
more than a small portion of its fertility, nor can use personally 
more than a small part of the results of the labour of countless 
persons, living and dead, which has gone to produce that 
fertility. No man can build a factory with his own hands, or 
make the machinery in it, nor can he use it, except in combi- 
nation with others. He may call it his, but he cannot make 
any use of it as his alone-, unless he is able to compel other 
people to use it for his benefit ; this he does not do personally, 
but our sham society has so organized itself that by its means 
he can compel this unpaid service from others. The magis- 
trate, the judge, the policeman, and the soldier, are the sword 
and pistol of this modern highwayman, and I may add that he 
is also furnished with what he can use as a mask under the 
name of morals and religion. 

Now, if these means of production the land, plant, and 
stock were really used for their primary uses, and not as 
means for extracting unpaid labour from others, they would 
be used by men working in combination with each other, each 
of whom would receive his due share of the results of that 
combined labour; the only difficulty would then be what 
would be his due share, because it must be admitted on all 
hands that it is impossible to know how much each individual 
has contributed towards the production of a piece of co-opera- 
tive labour; but the principle once granted that each man 
should have his due share of what he has created by his labour, 
the solution of the difficulty would be attempted, nay, is now 
hypothetically attempted, in various ways, in two ways mainly. 
One view is that the State that is, society organized for the 
production and distribution of wealth would hold all the 
means of the production of wealth in its hands, allowing 
the use of them to whomsoever it thought could use them, 
charging rent, perhaps, for their use, but which rent would be 
used again only for the benefit of the whole community, and 



84 MODERN SOCIALISM 

therefore would return to the worker in another form. It 
would also take on itself the organization of labour in detail, 
arranging the how, when, and where, for the benefit of the 
public, doing all this, one must hope, with as little centraliza- 
tion as possible; in short, the State, according to this view, 
would be the only employer of labour. No individual would 
be able to employ a workman to work for him at a profit, i.e. 
to work for less than the value of his labour (roughly esti- 
mated), because the State would pay him the full value of it ; 
nor could any man let land or machinery at a profit, because 
the State would let it without the profit. It is clear that if 
this could be carried out, no one could live without working. 
When a man had spent the wealth he had earned personally, 
he would have to work for more, as there would be no tribute 
coming to him from the labour of past generations ; on these 
terms he could not accumulate wealth, nor would he desire to 
for he could do nothing with it except satisfy his personal 
needs with it, whereas at present he can turn the superfluity 
of his wealth into capital, i.e. wealth used for the extraction of 
profit. Thus society would be changed. Every one would 
have to work for his livelihood, and everybody would be able 
to do so ; whereas at present there are people who refuse to 
work for their livelihood, and forbid others to do so. Labour 
would not be wasted, as there would be no competing em- 
ployers, gambling in the market, and using the real producer 
and the consumer as their milch cows. The limit of price 
would be the cost of production, so that buying and selling 
would be simply the exchange of equivalent values, and there 
would be no loss on either side in the transaction. Thus 
there would be a society in which every one would have an 
equal chance for well-doing, for, as a matter of course, 
arrangements would be made for the sustaining of people in 
their nonage, for keeping them in comfort if they were physi- 
cally incapacitated from working, and also for educating every 
one according to his capacities. This would at the least be a 
society which would try to perform those functions of seeing 



WILLIAM MORRIS 85 

that every one did his due share of work and no more, and 
had his due share of wealth and no less, and that no labour 
was wasted, which I have said were the real functions of a 
true society. 

But there is another view of the solution of the difficulty as 
to what constitutes the due share of the wealth created by 
labour. Those who take it say, since it is not really possible 
to find out what proportion of combined labour each man 
contributes, why profess to try to do so? In a properly 
ordered community all work that is done is necessary on 
the one hand, and on the other there would be plenty of 
wealth in such a community to satisfy all reasonable needs. 
The community holds all wealth in common, but has the 
same right to holding wealth that the individual has, namely, 
the fact that it has created it and uses it ; but as a community 
it can only use wealth by satisfying with it the needs of every 
one of its members it is not a true community if it does less 
than this but their needs are not necessarily determined by 
the kind or amount of work which each man does, though, of 
course, when they are that must be taken into account. To 
say the least of it, men's needs are much more equal than 
their mental or bodily capacities are; their ordinary needs, 
granting similar conditions of climate and the like, are pretty 
much the same, and could, as above said, be easily satisfied. 
As for special needs for wealth of a more special kind, 
reasonable men would be contented to sacrifice the thing 
which they needed less for that which they needed more; 
and for the rest, the varieties of temperament would get over 
the difficulties of this sort. As to the incentives to work, it 
must be remembered that even in our own sham society 
most men are not disinclined to work, so only that their 
work is not that which they are compelled to do; and the 
higher and more intellectual the work is, the more men are 
resolved to do it even in spite of obstacles. In fact, the ideas 
on the subject of the reward of labour in the future are 
founded on its position in the present. Life is such a terrible 



86 MODERN SOCIALISM 

struggle for the majority, that we are all apt to think that a 
specially gifted person should be endowed with more of that 
which we are all compelled to struggle for money, to wit 
and to value his services simply by that standard. But in a 
state of society in which all were well-to-do, how could you 
reward extra services to the community? Give your good 
worker immunity from work ? The question carries with it 
the condemnation of the idea, and moreover, that will be 
the last thing he will thank you for. Provide for his children ? 
The fact that they are human beings with a capacity for work 
is enough ; they are provided for in being members of a 
community which will see that they neither lack work nor 
wealth. Give him more wealth ? Nay ; what for ? What can 
he do with more than he can use? He cannot eat three 
dinners a day, or sleep in four beds. Give him domination 
over other men ? Nay, if he be more excellent than they are 
in any art, he must influence them for his good and theirs, 
if they are worth anything ; but if you make him their arbitrary 
master, he will govern them, but he will not influence them ; 
he and they will be enemies, and harm each other mutually. 
One reward you can give him, that is, opportunity for 
developing his special capacity, but that you will do for 
everybody and not the excellent only. Indeed, I suppose he 
will not, if he be excellent, lack the admiration or perhaps 
it is better to say the affection of his fellow-men, and he 
will be all the more likely to get that when the relations 
between him and them are no longer clouded by the fatal gift 
of mastership. 

In short, in a duly ordered community, everybody would 
do what he could do best, and therefore easiest, and with 
most pleasure. He who could do the higher work would 
do it as easily as the man whose capacity was less would do 
the lower work; there would be no more wear and tear to 
him in it, or if there were, it would mean simply that his needs 
were greater, and would have to be considered accordingly. 

Moreover, those who see this view of the new society 



WILLIAM MORRIS 87 

believe that decentralization in it would have to be complete. 
The political unit with them is not a Nation, but a Commune ; 
the whole of reasonable society would be a great federation of 
such communes, federated for definite purposes of the organi- 
zation of livelihood and exchange. For a mere nation is the 
historical deduction from the ancient tribal family, in which 
there was peace between the individuals composing it, and 
war with the rest of the world. A nation is a body of people 
kept together for purposes of rivalry and war with other similar 
bodies, and when competition shall have given place to 
combination the function of the nation will be gone. 

I will recapitulate, then, the two views taken among 
Socialists as to the future of society. According to the first, 
the State that is, the nation organized for unwasteful produc- 
tion and exchange of wealth will be the sole possessor of the 
national plant and stock, the sole employer of labour, which 
she will so regulate in the general interest that no man will 
ever need to fear lack of employment and due earnings there- 
from. Everybody will have an equal chance of livelihood, and, 
except as a rare disease, there would be no hoarding of money 
or other wealth. This view points to an attempt to give every- 
body the full worth of the productive work done by him, after 
having ensured the necessary preliminary that he shall always 
be free to work. 

According to the other view, the centralized nation would 
give place to a federation of communities who would hold all 
wealth in common, and would use that wealth for satisfying 
the needs of each member, only exacting from each that he 
should do his best according to his capacity towards the 
production of the common wealth. Of course, it is to be 
understood that each member is absolutely free to use his share 
of wealth as he pleases without interference from any, so long 
as he really uses it, that is, does not turn it into an instrument 
for the oppression of others. This view intends complete 
equality of condition for every one, though life would be, as 
always, varied by the differences of capacity and disposition ; 



88 MODERN SOCIALISM 

and emulation in working for the common good would supply 
the place of competition as an incentive. 

These two views of the future of society are sometimes 
opposed to each other as Socialism and Communism ; but 
to my mind the latter is simply the necessary development of 
the former, which implies a transition period, during which 
people would be getting rid of the habits of mind bred by the 
long ages of tyranny and commercial competition, and be 
learning that it is to the interest of each that all should 
thrive. 

When men had lost the fear of each other engendered by 
our system of artificial famine, they would feel that the best 
way of avoiding the waste of labour would be to allow every 
man to take what he needed from the common store, since 
he would have no temptation or opportunity of doing any- 
thing with a greater portion than he really needed for his 
personal use. Thus would be minimized the danger of the 
community falling into bureaucracy, the multiplication of 
boards and offices, and all the paraphernalia of official 
authority, which is after all a burden, even when it is exercised 
by the delegation of the whole people and in accordance with 
their wishes. 

Thus I have laid before you, necessarily briefly, a Socialist's 
view of the present condition of labour, and its hopes for 
the future. If the indictment against the present society 
seems to you to be of undue proportions compared with the 
view of that which is to come, I must again remind you that 
we Socialists never dream of building up by our own efforts in 
one generation a society altogether new. All I have been 
attacking has been the exercise of arbitrary authority for the 
supposed benefit of a privileged class. When we have got 
rid of that authority and are free once more, we ourselves shall 
do whatever may be necessary in organizing the real society 
which even now exists under the authority which usurps that 
title. That true society of loved and lover, parent and child, 
friend and friend, the society of well-wishers, of reasonable 



WILLIAM MORRIS 89 

people conscious of the aspirations of humanity and the 
duties we owe to it through one another, this society, I 
say, is held together and exists by his own inherent right 
and reason, in spite of what is usually thought to be the 
cement of society arbitrary authority to wit that is to say, 
the expression of brute force under the influence of unreason- 
ing habit. Unhappily though society exists, it is in an enslaved 
and miserable condition, because that same arbitrary authority 
says to us practically : " You may be happy if you can afford 
it, but unless you have a certain amount of money, you shall 
not be allowed the exercise of the social virtues; sentiment, 
affection, good manners, intelligence even, to you shall be 
mere words; you shall be less than men, because you are 
needed as machines to grind on in a system which has come 
upon us, we scarce know how, and which compels us, as well 
as you." This is the real, continuously repeated proclamation 
of law and order to the most part of men who are under the 
burden of that hierarchy of compulsion which governs us under 
the usurped and false title of society, and which all true 
Socialists or supporters of real society are bound to do their 
best to get rid of, so as to leave us free to realize to the full 
that true society which means well-being and well-doing for 
one and all. 



IX 

PROBLEMS OF MODERN INDUSTRY 
BY SIDNEY AND BEATRICE WEBB 

This is from the introduction to the second edition (July, 1902) of 
Mr. and Mrs. Webb's collection of essays entitled Problems of Modern 
Industry. 

Mr. and Mrs. Webb's principal joint works are, A History of Trade 
Unionism (1894) ; Industrial Democracy (1897 * the last chapter con- 
tains the fullest account of their views on the development and future 
constitution of society); and A History of English Local Government 
from 1688 to 1834 (ist vol., 1906). Mr. Webb has been a leading 
member of the Fabian Society since its inception, a London County 
Councillor since 1892, and has played a chief part in creating and 
shaping the London School of Economics. Mrs. Webb is the 
authoress of The Co-operative Movement in Great Britain, by Beatrice 
Potter, and one of the signatories of the Minority Report of the 
Royal Commission on the Poor Laws, 1909. 

THE opening of the twentieth century finds both England 
and the United States in a state of acute self-consciousness 
with regard to the organization of industry and commerce, and 
the influence of financial considerations in national politics. 
The last decade has witnessed important and even dramatic 
changes in the economic organization of the civilized world. 
These changes have, both in the United Kingdom and the 
United States, produced a marked effect on the public imagi- 
nation. Public opinion learns, it is to be feared, little from 
books, and only occasionally absorbs a discovery in the realm 
of thought. Its most effective teacher is always some objective 
happening in the world of things. The English municipalities 
learned the elements of sanitation, not from the physiologists, 
but from three successive visitations of Asiatic cholera. The 
economic changes of the last few years the scramble for 

90 



S. AND B. WEBB 91 

Africa, the territorial expansion of the United States, the 
enormous development of individual fortunes, the "inter- 
nationalization" of every branch of industry, and, above all, 
the startling multiplication of syndicates, trusts, and giant 
amalgamations all these have worked a great change in the 
mind of the electorate. In the new Introductions to the 
current editions of the History of Trade Unionism and 
Industrial Democracy we have described some of these 
developments of public opinion, with special reference to 
trade-unions and strikes- We now add a few suggestions 
with regard to Trusts, and the public alarm concerning them. 

It is curious to notice with what a start the ordinary 
citizen has all of a sudden realized how entirely both England 
and the United States have departed from the industrial 
organization described by the classic economists. Adam 
Smith's Wealth of Nations and the Declaration of Independ- 
ence were given to the world in the same year. We need not 
here inquire to what extent the argument and philosophy of 
both these masterpieces may have been influenced by the 
industrial organization then common to England and New 
England. What is brought vividly and dramatically to our 
minds by the formation of the so-called " Billion Dollar Steel 
Trust " and the " Atlantic Shipping Combine " is the extent of 
the change which has come over the economic status of the 
mass of the nation. A century and a quarter ago, when 
Jefferson and Adam Smith were writing, it could be taken for 
granted that the normal state of things was for every man to 
become, in due course, " his own master ; " it could be 
assumed that the work of the world was, for the most part, 
done by men who were moved by the stimulus of making 
" profit " as distinguished from wages or salary j it seemed a 
scientific fact that values were determined by the mutual 
exchange of the commodities and services of independent 
producers. It was on these assumptions that the classic 
political economy was based. What is more important to us 
to-day is that, both in England and in the United States, the 



92 MODERN SOCIALISM 

public opinion of the educated and prosperous classes still 
makes, with regard to half its judgments, much the same 
assumptions. Neither the prosperous Englishman nor the 
prosperous American can rid himself of the feeling that it is 
open to every one to become a profit-maker, that no one need 
long remain a mere wage-earner, and that it is therefore not 
really of vital consequence to the nation how those members 
of the community who happen temporarily to be wage-earners 
are actually living. The opening of the twentieth century 
sees, perhaps, some weakening of this assumption. England 
pays more and more attention to its factory legislation. The 
prosperous American still believes, however, that at any rate 
every native-born American can rise to a higher place, and 
that the status of the hired labourer is therefore, on the 
American continent, still something transient, exceptional, 
and relatively unimportant. He is still revolted by any 
glimpse of American democracy as a " democracy of the 
* hired man.' " Yet surely nothing is more certain than that 
in the United States, as in Western Europe and Australia, the 
hired men form, and must necessarily continue to form, at least 
three-fourths of the population. This is a fact which the advent 
of the Trust, the supremacy of business conducted on a large 
scale, the rapidly increasing concentration of nearly every kind 
of industry, can hardly fail to drive home to the mind of the 
American, as to that of the English citizen. He will, for the 
first time, become aware of himself as one of a democracy of 
hired men. 

We shall be conscious, too, by whom we are hired. It has 
long been a fond dream, both in England and in the United 
States, to prove, by some mysterious juggling with wage and 
price statistics, that wealth is getting more equally distributed, 
that the proportion of small competences is increasing, and 
that the number is growing of those who, as shareholders or 
interest receivers, share in industrial profits. This has, for forty 
or fifty years, been an amiable delusion of the statistical philan- 
thropist. It is now dispelled. The dramatic concentrations 



S. AND B. WEBB 93 

of capital exhibited by the Rockefellers and Pierpont Morgans, 
like the visible accumulations of some English ducal ground- 
landlords, have forced upon everybody's notice the indis- 
putable testimony of death-duty statistics. The only point 
in dispute is whether wealth-concentration has as yet gone 
further in England or in the United States. This is, of course, 
not to deny that some or all of the property-less masses have, 
during the past fifty years, found their conditions of life 
improved. But the advent of the Trust is making both 
England and America roalize, as they have never realized 
before, that in both countries nine-tenths of all the realized 
property belongs to-day to a class that comprises only one- 
tenth of the population, that ninety per cent, of the citizens, 
the great mass of the people, share among them, even including 
their little homes and furniture, and all their much-vaunted 
hoards, the ownership of not more than ten per cent, of the 
capital wealth. 

But if the advent of the trust makes us conscious of our- 
selves as nations of hired men, it necessarily compels us to 
realize that the conditions of our hiring are all-important, not 
only to ourselves individually, but to the community as a 
whole. " Every society is judged," as Mr. Asquith, the late 
Home Secretary, said the other day, " and survives, according 
to the material and moral minimum which it prescribes to 
its members." Note that word " prescribes." As hired men, 
we find ourselves graded in elaborate hierarchies, from the 
sweated trouser-hand or day-labourer, right up to Mr. Schwab 
or Mr. Clinton Dawkins at fabulous salaries. But the census 
shows four-fifths of us to be manual-working wage-earners, 
keeping our families out of earnings which may be anything 
from ten shillings to ten pounds a week. These earnings 
depend on our successful bargaining with our employers 
employers who used to be men like ourselves, but who, as we 
now realize, are, for the majority of us, gigantic capitalist cor- 
porations, huge joint-stock mills, railways, shipping combines, 
and " Billion Dollar Steel Trusts." Between these employers 



94 MODERN SOCIALISM 

and the individual workmen there has hitherto been assumed 
to be "freedom of contract," secured to us by the Constitu- 
tion of the United States or by the contemporary general 
principles of the law in the United Kingdom; and this 
freedom of contract was inaugurated, and is to-day still usually 
defended, as being in the highest interests of the wage-earner 
himself. " The patrimony of a poor man," says Adam Smith, 
11 lies in the strength and dexterity of his hands ; and to hinder 
him from employing that strength and dexterity in what 
manner he thinks proper, without injury to his neighbour, is 
a plain violation of this most sacred property." But the con- 
ditions of industry have somewhat changed since 1776, and 
the " Billion Dollar Steel Trust," though it does not appreciably 
alter the circumstances, is opening our eyes to them. We see 
now, what the professors of political economy have gradually 
become conscious of, that freedom of contract in the hiring of 
labour may mean something very like the compulsion of one 
party to serve the other, on terms nominally contractual, but 
virtually fixed by overwhelming superiority in strength. When 
the conditions of the workman's life are settled, without inter- 
ference by law or trade-unionism, by absolutely free contract 
between man and man, the workman's freedom is delusive. 
Where he bargains, he bargains at a hopeless disadvantage; 
and with regard to many of the terms most important to his 
health, comfort, and industrial efficiency, he cannot bargain 
at all. 1 

This conclusion will carry with it such momentous con- 
sequences, and is as yet so imperfectly realized, that it is 
worth while to think it over. Let us consider how the wage- 
contract is actually entered into. Leave out of account, to 

1 The whole argument on this point, with the facts on which it is based, 
will be found more fully set forth in our Industrial Dftnocracy, part iii. 
chap, ii., " The Higgling of the Market ;" and chap, iii., "The Economic 
Characteristics of Trade Unionism." See, for a more popular presentation, 
The Case for the Factory Acts, edited by Mrs. Sidney Webb (London, 1902). 
[Authors' Note.] 



S. AND B. WEBB 95 

begin with, any period of bad trade, when mills are shutting 
down or running only short time, and armies of unemployed 
are looking for work. Assume that things are in equilibrium, 
that there is only one "hand" applying for it. Watch 
carefully the play of motives acting on the two minds, that of 
the " man with the dinner-pail " seeking employment, and that 
of the employer or foreman with a place to fill. Suppose the 
workman to demur to the wage offered by the employer. 
There is, we assume, absolutely no other spare hand in sight. 
To leave the vacancy unfilled may cause some inconvenience 
in the mill. To complete the orders in hand, some of the 
other men may have to work more overtime. The delivery of 
the goods may even have to be delayed, the year's output may 
be diminished, and the year's profits may be fractionally less 
than they would have been. But in the mean time the capitalist 
or his agent is not actually affected in his daily life. He and 
his family go on eating and drinking as they did before. At 
most, the matter is a trifling one to them. Thus, the capitalist 
can afford to wait until the workman returns in a humbler 
frame of mind. And this is just what the workman must do. 
What is only a trifling matter to the capitalist is to the work- 
man his whole livelihood. Moreover, he cannot wait. Even 
if he stands out one day, he has thereby lost that day. His 
very subsistence depends on his quickly coming to an agree- 
ment. If he is obstinate, consumption of his little hoard or 
the sale of his furniture may delay the catastrophe. Sooner or 
later slow starvation forces him to come to terms. And, since 
success in the "higgling of the market" is largely dependent 
on the relative eagerness of the parties to come to terms 
conspicuously so if this eagerness cannot be concealed 
from the antagonist, capitalist and workman always meet, 
in the absence of law or effective trade-unionism, on unequal 
terms. Further, the capitalist knows the cards, and the 
workman does not. Even in the rare cases in which the 
absence of a single workman is of any real consequence to the 
employer, this is usually unknown to any one but himself. 



96 MODERN SOCIALISM 

He, too, knows the state of the market, and can judge 
whether it might not even suit him better to slacken production 
for the moment. The isolated individual workman bargains 
in the dark. Add to this the fact that the workman is not 
trained in the art of bargaining, which is the daily business of 
the employer, or the constant task of an expert specially 
trained for the particular work of hiring men. Thus, in the 
bargaining between a capitalist corporation and the individual 
labourers whom it hires, the labourers stand to lose at every 
point. 

So far we have been assuming that the labour-market is in 
equilibrium, and that only one hand applies for one vacant 
place. But at what periods and in what trades is so perfect 
an equilibrium to be found ? When wealthy companies are 
concentrating their works and shutting down unnecessary 
mills; when new processes or new machines are displacing 
labour; when industrial crises, changes of fashion, or the 
mere shifts and gusts of international commerce cause our 
production to wane, now in this branch, now in that, what 
freedom has the hired man ? When the unemployed are 
crowding round the factory gates, it is plain to each one 
among them that, unless he can induce the foreman to choose 
him rather than another, his chance of subsistence for weeks 
to come may be irretrievably lost. Bargaining, in any genuine 
sense, there can be none. The foreman has but to pick his 
man and name the price even if he does so much as name 
the price. Once inside the gates, the lucky workman knows 
that if he grumbles at any of the surroundings, however 
intolerable; if he demurs to any speeding up, lengthening of 
the hours, or arbitrary deductions ; or if he hesitates to obey 
any orders, however unreasonable, he condemns himself once 
more to the semi-starvation and misery of unemployment. 
The alternative to the foreman or ganger is merely to pick 
another labourer out of the eager crowd at the gate. The 
difference to the joint-stock company is nil. 

But much more remains to be said. To the capitalist 



S. AND B. WEBB 97 

corporation the wage-contract is simply a question of so much 
money to be paid. To the workman it is a matter of placing, 
for ten or twelve hours out of every twenty-four, his whole life 
at the disposal of his hirer. What hours he shall work, when 
and where he shall get his food, the sanitary conditions of his 
employment, the safety of the machinery, the temperature and 
atmosphere to which he is subjected, the fatigue or strains that 
he endures, the risks of disease or accident that he incurs, 
all these are involved in the workman's contract, and not in 
his employer's. These are matters of as vital importance to 
the wage- earner as are his wages. Yet about these matters 
he cannot, in practice, bargain at all. Imagine a weaver, be- 
fore accepting employment in a cotton-mill, examining the 
proportion of steam in the atmosphere of the shed, testing the 
strength of the shuttle-guards, and criticizing the soundness of 
the shafting-belts ; a mechanic prying into the security of the 
hoists and cranes or the safety of the lathes and steam- 
hammers among which he must move ; a work-girl in a sweat- 
ing den computing the cubic space which will be her share of 
the work-room, discussing the ventilation, warmth, and lighting 
of the place in which she will spend nearly all her working life, 
or examining disapprovingly the sanitary accommodation pro- 
vided ; think of the man who wants a job in a white lead 
works testing the poisonous influence of the particular process 
employed, and reckoning in terms of weekly wages the exact 
degree of injury to his health which he is consenting to under- 
go. On all these matters, at any rate, we must at once give 
up the notion of freedom of contract. In the absence of any 
restraint of law, the conditions of sanitation, decency, and 
security from accident in the various enterprises of the United 
States Steel Corporation or the Standard Oil Company are 
really at the mercy of the rulers of these great undertakings. 
They decide these conditions of life for the millions of work- 
men whom they employ and thus, to this extent, for the 
nation as arbitrarily (and, it is to be hoped, as humanely) as 
they do for their horses. " In the general course of human 

u 



98 MODERN SOCIALISM 

nature," remarked the shrewd founders of the American Con- 
stitution, " power over a man's subsistence amounts to a power 
over his will." 1 

These features of the lot ,of the hired man are common to 
England and America, and, indeed, to every country in which 
capitalist industry and production are found on a large scale. 
We must, in intellectual honesty, recognize the fact. But this 
is not to say that the condition ot the hired man is either good 
or bad, or better or worse than in bygone times. It is different 
from what it was when industry was carried on by the village 
blacksmith, different from that described by Adam Smith, 
different from that which Jefferson knew. The dinner-pail 
may be fuller as regards whole sections of the community 
it can certainly be proved to be fuller but there has been a 
change of relative status. Meanwhile, let us accept the result 
in the great wage-earning class as we now know it a com- 
munity of hired men ; a relatively small proportion of skilled 
artisans earning "good money;" the great mass living on 
wages, in England of five and twenty or thirty shillings, in the 
United States of ten or twelve dollars, per fully employed 
week; while below these come the unskilled labourers and 
most women workers, existing, in greater or smaller numbers, 
under conditions of " sweating " authoritatively defined as 
" earnings barely sufficient to sustain existence, hours of labour 
such as to make the lives of the workers periods of almost 
ceaseless toil, sanitary conditions injurious to the health of the 
persons employed, and dangerous to the pub lie." s Into one 
or another of these three categories come seventy or eighty per 
cent, of the whole population. Such are the loyal subjects of 
Edward the Seventh of England ; such are the free citizens of 
the United States. We hate to think about it, but it is so ; 
and the advent of the Trust is going to make us realize that 
it is so. 

1 Federalist, No. Ixxix. 

2 Final Report of the Select Committee of the House of Lords on the 
Sweating System, 1 890. 



S. AND B. WEBB 99 

What effect will this growing consciousness of industrial 
subordination have upon public opinion ? England developed 
its capitalist industry a couple of generations earlier than did 
the United States. Though the time for trusts and great 
railway combinations had not yet come, the new mills and 
mines which, at the end of the eighteenth century, spread over 
the northern and midland counties, were the leviathans of their 
day, and great was the power which they wielded in the labour- 
market. Complete "freedom of contract" prevailed. The re- 
sult, as every one knows, was the terrible " white slavery " of 
the first quarter of the nineteenth century, when generation after 
generation of workers in the factories and coal-mines were 
stunted and maimed, brutalized and degraded, and hurried 
into early graves, by the long hours, low wages, and insanitary 
conditions of those halcyon days, in which, as has been said, 
" it was not five per cent., or ten per cent., but thousands per 
cent., that made the fortunes of Lancashire." But England 
grew alarmed, amid all its profit, at the rapid degeneration of 
whole sections of its people. By the untiring efforts of the phi- 
lanthropists, Factory Act after Factory Act was passed, setting 
limits to freedom of contract, and substituting, for individual 
bargaining between man and man, definite " common rules " 
on every point deemed of prime importance to the welfare of 
the operatives. These common rules, securing a reasonable 
minimum of leisure, safety, and sanitation, applied at first only 
to the textile and mining industries, and are, to this day, not 
yet coextensive with the English wage-earning class. Nor do 
they apply to wages. But they grew up, after 1824, in all the 
principal English industries, strong trade-unions, which en- 
forced, by the instrument of collective bargaining, new common 
rules supplementing those laid down by law. The employers 
in each trade were numerous and divided. Differing among 
themselves in wealth and magnitude of business, as well as in 
personal character, they proved unable to present a solid front 
to the trade-unions. The result is that, in the course of the last 
half century, some of the principal and most successful branches 



ioo MODERN SOCIALISM 

of English industry notably cotton manufacture, coal-mining, 
ship-building, engineering, and the building trades have 
come to be regulated by codes of common rules, enforced 
partly by law and partly by collective agreement. The rate 
of wages, like the hours of work and the fundamental condi- 
tions of safety and sanitation, are therefore no longer at the 
mercy of individual capitalists. There exists in each trade a 
sort of minimum standard, fixed practically by general agree- 
ment among the whole body of employers on the one hand and 
the whole body of workmen on the other, below which it is 
found impossible for any employer to descend. He may break 
away, but he discovers presently that it no more pays him to 
outrage the public opinion of his trade than to infringe the 
factory law. The general opinion of the community acts, in all 
well-organized trades, as a real though curiously intangible 
check upon the capitalist. Public sympathy is always on the 
side of a stable and highly organized trade-union defending 
itself against any encroachment on the common rules or reduc- 
tion in rates. Great corporations like the London and North- 
Western Railway find themselves pulled up sharp by the 
peremptory interference of the Board of Trade when they are 
guilty of any unconscious tyranny over their employees. Even 
in the late engineers' strike, where the men lost sympathy be- 
cause they were believed to be resisting machinery, and the 
employers won all along the line, the final agreement formally 
recognized the right of collective bargaining and the need for 
common rules, while the result has been the establishment of 
a new tribunal of the trade to maintain these rules a joint 
tribunal, in which, for the moment, the associated employers 
doubtless have a larger influence than the associated workmen, 
but one to which every individual employer, no less than every 
individual workman, finds himself practically subject. This 
collective rule of the whole trade over every individual em- 
ployer in it, as well as over every individual workman, is 
typical of most of the industries in England in which there are 
great employers or strong capitalist corporations. Moreover, 



S. AND B. WEBB 101 

the law, where it purports to control, really does control, even 
the greatest corporation. Hence neither our philanthropists 
nor our workmen fear the Trust. England's industrial peril 
lies in quite another direction. 

The worst conditions of employment in the United Kingdom 
occur in those industries carried on by small employers, or 
desolated by home work, which have either escaped as yet 
from the ever-widening scope of the factory laws, or in which 
such laws are not yet effectively enforced. Here philanthropic 
sentiment has hitherto been evoked by the spectacle of the 
small master struggling to rise in the world, and unable to 
afford to his sweated employees either wholesome workshops, 
decent sanitation, or a living wage. These unfortunate 
workers, incapable of effective organization, have hitherto 
failed to obtain the same help from public opinion or the same 
measure of protective legislation that Parliament concedes to 
the politically active cotton-operatives or coal-miners, who need 
it far less. Unfortunately, too, the efforts to secure effective 
factory laws for these workers are at present balked by the 
doctrinaire resistance of many of the leaders of the movement 
for "women's rights." Thus, the sweated trades, in spite of 
their disastrous effects on the community as a whole, are given 
at present a positive advantage in the competition for the 
world-market. The absence of any collective regulation enables 
the employers so to use their superiority in bargaining for the 
hire of their labour as to reduce its condition even below sub- 
sistence level. These trades are, in fact, parasites on the rest 
of the community, drawing from the more prosperous sections, 
in one form or another, a continual " bounty " with which to 
eke out their starvation wages. Fortunately, the great staple 
industries of the kingdom, in which relatively good conditions 
prevail, gain so much in efficiency by their very regulation 
that they go on, notwithstanding this virtual bounty to the 
sweated trades, increasing in extent and prosperity year after 
year. What loses ground in England is any industry which 
escapes the beneficial effect of collective regulation, but which 



102 MODERN SOCIALISM 

for some reason fails to get the bounty implied in industrial 
parasitism. The most conspicuous example in English agri- 
culture, which is constantly falling more and more behind not 
only the great regulated trades such as cotton and coal, but 
also behind the miserably inefficient sweated trades, fed by 
parasitic bounty. Thus, what is most urgently needed in the 
United Kingdom, and what is most likely to spring from our 
growing consciousness of the weakness of the hired man, is 
not any interference with the great employers or their capitalist 
combinations, which are at present the least uncontrolled of 
our industrial forces, but an extension of the strong arm of 
the law on behalf of the oppressed workers in the sweated 
trades. 

Models for such action are afforded both by New Zealand 
and by Victoria. The time is not far distant when we shall 
see in London, as already in Melbourne, wage-boards for all 
the sweated trades, formed partly of employers and partly of 
wage-earners, and empowered to fix minimum rates of piece- 
work wages, below which it will be illegal for any employer to 
hire a hand. We shall, in fact, begin at the bottom of the 
industrial army, which suffers, not from great capitalists, but 
from small masters, not from the newest methods of industrial 
organization, but from the belated survival of the old-fashioned 
ones. These wage-boards, beginning, as in Victoria, in the 
sweated trades, will, also as in Victoria, not rest there. New 
Zealand points the way. More and more nearly do we 
approach the stage at which the conditions of employment 
wages as well as hours, sanitation as well as protection from 
accident, if not fixed by authoritative decision of joint com- 
mittees representing all the workmen and all the employers, 
are settled by an arbitrator's decree to which both parties find 
themselves compelled to submit. This will long be veiled in 
the United Kingdom, where reforms usually arrive in substance 
before they are called by their names. Yet English public 
opinion is already much impressed by the fact that in Victoria 
and in New Zealand the standard minimum conditions of 






S. AND B. WEBB 103 

employment rates of wages as well as hours and sanitation 
which the community thinks fit to require from time to time 
in each particular trade, are promulgated as law, and enforced 
by the criminal courts. The nineteenth century in the United 
Kingdom has seen the extension of the factory law to sanitation 
and decency, hours of labour, and protection against accident, 
in a select set of trades. The result of our growing conscious- 
ness of the weakness of the wage-earner in his bargaining with 
the great capitalist employer is to bring us, at the opening of 
the twentieth century, to the threshold of the Legal Minimum 
Wage for every branch of industry. Note again Mr. Asquith's 
word " prescribes." 

But the result in the United States may possibly be quite 
otherwise. The great capitalist corporations of the United 
States differ as widely from those of the United Kingdom as 
do the laws and the trade-unions of the two countries. In 
England, as I have said, the great capitalist is, and feels 
himself to be, effectively under control. The trade-unions, if 
inferior in strength on a fight to a finish, are in a position to 
offer him stubborn resistance. The law is unquestionably his 
master. And public opinion, not altogether on either side in 
the conflict, passes with great rapidity, and with irresistible 
force, into opposition to any serious attack on the current 
Standard of Life. The American capitalist corporation is, 
and feels itself to be, in a very different position. American 
philanthropy has never been stirred by the sensational evils in 
cotton and coal which brought about the English factory and 
mining laws. Legal regulation of the conditions of labour, 
where it exists at all, has been, and continues to be, an alien 
element in the American system, doubtfully constitutional 
and hesitatingly enforced. The indispensable administrative 
organization for any real enforcement of standard conditions 
is nearly everywhere lacking. Nor does public opinion wish 
it otherwise. Throughout the whole century, and right down 
to our own day, it has been possible to retain" the complacent 
assurance, not too obviously contradicted by fact, that the 



104 MODERN SOCIALISM 

native-born American, of Anglo-Saxon or Teutonic descent, 
was always able to rise to a position of command, and to 
earn a relatively good living. There is no evidence that the 
concentration of industry in great capitalistic corporations, or 
the vast accumulation of wealth in the hands of a small class, 
has yet had any injurious effect on wages or on the other 
conditions of employment. On the contrary, there is some 
reason to think that so far, at any rate, as foremen and skilled 
workers are concerned, the change in industrial organization 
may be to their pecuniary advantage. In the comparatively 
few sections of labour in which the workmen's organizations 
have any real strength these being usually the higher grades, 
with some approach to a monopoly of skill or high technique, 
it may well suit the capitalist corporations to buy off opposi- 
tion by increased wages, which could not in any case make an 
appreciable difference in the total cost of production. Public 
opinion, moreover, keenly interested in the greatest possible 
development of the national industry, and strongly prejudiced 
against the interference of "labour unions," will continue to 
operate against any effective strike. Thus, the rulers of the 
great capitalist corporations are, within the industrial sphere, 
really able to do what they like with their own. When all 
the employers in a single industry from California to Maine 
combine into a single corporation, this leviathan is, indeed, 
perhaps the most perfect example of freedom that the world 
has ever seen. In the employment of labour, especially of a 
low grade, such a giant corporation may impose very nearly 
whatever conditions it chooses. Its power of " disciplining " 
any recalcitrant hand, or even a whole community, is terribly 
potent. It can shut down here and build up there, without 
let or hindrance ; it can maintain whatever brutalizing or 
deteriorating conditions of labour that it thinks profitable to 
itself; it can disregard with impunity all precautions against 
disease or accident ; it can exact whatever degree of speed at 
work it pleases; it can, in short, dispose of the lives of its 
myriads of workers exactly as it does of those of its horses. 



S. AND B. WEBB 105 

The workers may "kick;" there may be labour unions and 
strikes ; but against such industrial omnipotence the weapons 
of the wage-earners are as arrows against ironclads. This will 
be all the more certainly the case because it will suit the 
leviathian, as a matter of convenience, to come to terms with 
the small minority of skilled and well-paid workmen, who 
might have stiffened the rest. This is the condition of 
monopolist autocracy into which every great industry in the 
United States seems fated to pass, and to pass with great 
rapidity. A few thousands of millionaire capitalist "kings," 
uniting the means of a few hundreds of thousands of passive 
stockholders, and served by perhaps an equal number of well- 
salaried managers, foremen, inventors, designers, chemists, 
engineers, and skilled mechanics, will absolutely control an 
army of ten or fifteen millions of practically property-less 
wage-labourers, largely Slavonic, Latin, or Negro in race. 

Now, we can hardly seriously predict, as a leading 
American economist is said to have done, that this freedom 
in autocracy will, within twenty-five years, produce an Emperor 
of America. But it is not difficult to see that, unless the 
United States learns a new lesson from the advent of the Trust, 
it is preparing for itself a twentieth century such as Washington 
would have shuddered to think of. From the purely "busi- 
ness " point of view, even when reinforced by all the scientific 
economics of the college professor, there seems nothing to 
stop the triumphant progress of this capitalist autocracy. The 
great capitalists have no doubt thought this out, and are 
confident of their future profits. But what American capitalists 
always seem to undervalue is the influence exercised upon 
their profits by wide political movements. How little the 
Pierpont Morgans and Rockefellers of 1850 and 1856 thought 
about the Abolitionists ! Yet the outcome of the Abolitionist 
agitation upset a great many capitalist schemes. Even the 
Bryan presidential campaign of 1896 cost the capitalists many 
millions in diminished trade, slackened output, and diverted 
energy. And so, the outsider ventures to predict, the advent 



106 MODERN SOCIALISM 

of the Trust will lead to quite unforeseen hindrances to 
industrial development and quite unexpected deductions from 
capitalist profits, arising from the kind of civilization which it 
will produce and the political reactions which it will set up. 
Let us, therefore, examine more closely what America has to 
fear from the rule of the Trusts. 

Notice, to begin with, that the advent of the Trust almost 
necessarily implies an improvement in industrial organization, 
measured, that is to say, by the diminution of the efforts and 
sacrifices involved in production. Just as it was a gain to the 
community, from this point of view, for the myriad small 
masters to be merged in the relatively few capitalist employers, 
so it is a further gain to merge these capitalist employers into 
great Trusts or Corporations. The Standard Oil Company 
and the United States Steel Corporation represent, in fact, an 
improvement in industrial technique. So far as their organiza- 
tions prevail, the production of commodities is carried on with 
less labour, less friction, less waste, than it was under the 
arrangements which they have superseded. There may be 
other disadvantages, just as there were other disadvantages 
when the hand-loom was superseded by the power-loom. 
But we must not let the drawbacks obscure the element of 
real progress. The rule of the great capitalist corporations 
secures the organization of the work of the world in a way 
which enables it to be done with a smaller expenditure of 
labour. 

But will the public be allowed to get the benefit of this 
industrial improvement? Is it not to be expected that the 
Trusts will put up prices against the consumer, and so levy 
a tax upon the world compared with which the exactions of 
Government sink into insignificance? This danger seems to 
me exaggerated and comparatively unimportant. It must 
be remembered that anything like absolute monopoly of 
production in the staple needs of the mass of the people is 
unknown, and practically impossible. The main products of 
the world are produced in too many different countries, under 



S. AND B. WEBB 107 

too many different industrial systems, standing at too varying 
grades of civilization, for any absolute combination into a 
single hand. A Trust may, indeed, easily come to dominate 
a single market. But even then, so great is the potential 
expansion of demand for the articles of common consumption, 
that it will probably pay the Trust better to reduce prices than 
to raise them. As regards America, indeed, the remedy for 
any oppressive raising of prices is to abolish the customs tariff, 
and to call in the foreign producer. The monopolist Trust, 
even in countries that freely open their ports to foreign pro- 
ducts, can no doubt make large profits. But its profits will 
represent chiefly the economies in production brought about 
by its own formation. The consumer will not have to pay 
more than the consumer of the same article in countries not 
subject to the Trust, except by the amount of the freight, and 
probably, as we shall see, not even by so much as that. 
Hence we may expect the increasing dominance of the Trust 
to make for the abolition of protective duties. It is, indeed, 
not the consumer, as consumer, who need particularly fear the 
Trusts. If, however, this conclusion proves erroneous, the 
consumer, as citizen, has another remedy, to which we shall 
refer at the end of this introduction. 

The competent, " pushful," native-born American will get 
on all right under this capitalist autocracy. He will, indeed, 
have to give up the chance of becoming his own master, and, 
practically, that of " making a pile." But what will be virtually 
the civil service of industry, the great salaried hierarchy of the 
Trusts, will offer a safer and, on the average, a better paid 
career for industrial talent than the old chances of the market. 
Every man of skill and energy, competence and " go," will be 
wanted in the gigantic organization of the new industry. 
Brains will be at a premium. From the skilled mechanic 
right up to the highest engineering genius, from the competent 
foreman up to the brightest railway organizer, from the merely 
practised chemist up to the heaven-born inventor or designer, 
and will find, not merely employment, but scope for their 



io8 MODERN SOCIALISM 

whole talent ; not merely remuneration, but salaries such as 
the world has seldom seen. And in serving their employers 
they will be at least as directly serving the community as they 
are at present. 

It is when we come to the great mass of wage-earners the 
ten or fifteen millions of day-labourers and ordinary artisans 
that we see the really grave consequences of industrial 
autocracy. These men, with their wives and families, must 
necessarily constitute the great bulk of the population, the 
" common lump of men." It is in their lives that the civiliza- 
tion of a nation consists, and it is by their condition that it 
will be judged. And, though the great ones never believe it, 
it is upon the status, the culture, the upward progress of these 
ordinary men that the prosperity of the nation, and even the 
profits of the capitalists, ultimately depend. What is likely 
to be the Standard of Life of the ordinary labourer or 
artisan under the great industrial corporations of the United 
States ? 

Now one thing is definitely proved, both by economic 
science and business experience. If the wages of common 
labour are left to "supply and demand," and are not interfered 
with by factory law or effective trade-unionism, we shall 
witness no improvement in the present conditions of life 
of the Pennsylvania miner, the Chicago sweat-shop hand, 
the day-labourer on the railroad, or the girl seamstresses 
sewing for dear life in New York tenement garrets. On the 
contrary, we shall see these conditions of life generalized over 
the whole range of common labour, male or female. We 
shall find wages everywhere forced down, for the ordinary, 
common skilled worker, to their " natural level " that is, to 
the barest subsistence of the human animal from day to day. 
With this state of things will necessarily go the corresponding 
life, such as we see it already in the Pittsburg or Chicago slum. 
It is, however, needless to amplify the picture. To what 
awful depths of misery and demoralization, brutality and 
degradation, humanity can, under " perfect freedom," descend, 



S. AND B. WEBB 109 

we are scarcely yet in a position to say. Is this to be the 
contribution to economics, in the twentieth century, of the 
country of Jefferson and Washington ? 

Fortunately for the world, the United States is not likely 
to make this experiment. The millions of common labourers, 
however poor and degraded they may be, or may become, are 
yet citizens and voters, are, moreover, the inheritors, even 
if of alien race, of glorious traditions of manhood and freedom. 
That uncontrolled personal power which several centuries of 
struggle have displaced from the throne, the castle, and the 
altar, is not likely to be allowed to rule in the farm, the 
factory, and the mine. As yet, the American citizen still 
believes himself to be free, and sees not the industrial sub- 
jection into which he is rapidly passing. But it is not to 
be supposed that he will witness unmoved the successive 
failures of trade-unions and strikes, the general reductions in 
wages which will mark the first spell of bad trade, the manifold 
dismissals and " shuttings down," the progressive degradation 
of his class. He will take up every wild dream and every 
mad panacea. He will be tricked and outvoted again and 
again ; but if so, the result will be a " class war " more 
terrible than any the world has seen, and one in which, though 
the ultimate victory will be with the common people, American 
civilization may go back several generations. 

Yet America ought to avoid this catastrophe. The ex- 
periment has already been tried, and the remedy is known. 
If the people of the United States will but do that most 
difficult of all things learn by the experience of other nations 
they may get out of the Trusts all the advantages which 
these offer, without suffering the terrible calamity in which 
they unwittingly threaten to overwhelm American civilization. 
The remedy lies in what we, in our Industrial Democracy^ 
have ventured to call the " Policy of the National Minimum." 
We must give up the idea of individual freedom of competi- 
tion, which the combinations of capital have proved to be 
illusory, and take up, instead, the higher freedom of collective 



i io MODERN SOCIALISM 

life. We must get back as a community what we have lost as 
individuals. 

The Policy of the National Minimum translates itself into 
four main branches of legislative and executive activity. 
There will have to be a national minimum of wages. The 
Trusts, or the other employers, will be under no legal obliga- 
tion to employ any person whatsoever. But if they do employ 
him or her, it will be a condition of every contract, not to 
be waived or ignored, that its terms shall not be such as will 
impair the efficiency of the citizen or diminish the vitality of 
the race. To engage labour at wages insufficient to repair 
the waste of tissue caused by the employment is demonstrably 
to injure the community as a whole, and will be prosecuted as 
such in the criminal courts. Those whose labour is not 
worth the national minimum the aged, the crippled, and the 
blind ; the mentally or morally deficient ; the epileptic ; and 
the chronically feckless and feeble-minded will be maintained 
by the community, as indeed they are now. But of all the 
ways of maintaining those unable to earn a full livelihood, by 
far the most costly and injurious is to allow them to compete 
in the labour market, and thus to drag down by their infirmity 
those who are whole. There are still people, of course, who 
simply cannot imagine how a legal minimum wage could 
possibly be enforced, just as there were, sixty years ago, 
economists who demonstrated the impossibility of factory 
laws. We have dealt fully with their difficulties and objec- 
tions in our Indusfrial Democracy. As a matter of fact, 
the legal minimum wage can be seen in force to-day in 
Victoria and New Zealand, South Australia and New South 
Wales. 

There will be a national minimum of leisure and recreation 
secured by law to every citizen. It will be an implied con- 
dition of every contract of employment, rigidly enforced by 
law, that it shall leave untouched sixteen hours out of each 
twenty-four for needful sleep, recreation, exercise of mind or 
body, and the duties of citizenship and family life. Any 



S. AND B. WEBB in 

attempt by man or woman to sell for wages any part of the 
sixteen sacred hours will be blamed as virtual embezzle- 
ment, since this part of the twenty-four hours' day must 
be regarded as necessarily reserved for the purpose of 
maintaining unimpaired the efficiency of the race. Any 
employer purchasing them, or allowing them to be spent in 
his mill or mine, will be prosecuted and punished, as if 
he had incited to embezzlement or had received stolen 
goods. 

There will be a national minimum of sanitation, enforced 
not merely on land or house owners or occupiers, but also 
on local governing authorities. The nation will find it pre- 
posterous that any city, merely out of stupidity or incapacity 
or parsimony, should foster disease, or bring up its quota of 
citizens in a condition of impaired vitality. The power of 
the community as a whole, will, somehow or other, be brought 
to bear upon every backward district, compelling it to lay on 
pure water, to improve its drainage, and to take such action, 
even by municipal building if need be ; that no family in the 
land shall have less than " three rooms and a scullery," as the 
minimum required for health and decency. Along with this 
must go the adequate provision of medical attendance, skilled 
nursing, and hospital accommodation for the sick. Within a 
generation of the adoption of such a policy, the death-rate 
and sickness experience would show a reduction of one-third 
of what is at present endured as if it were the decree of 
Providence. 

There will be a national minimum of education not 
merely in the provision of schools, but in genuinely com- 
pulsory attendance at them. Besides schools and colleges 
of every grade, there will have to be an adequate " scholar- 
ship ladder," securing maintenance as well as free tuition, 
right up to the post-graduate course, for every scholar proving 
himself or herself fitted for anything beyond common school- 
ing. And this provision will be enforced by the national 
power upon local school authorities as well as upon parents 



I iz MODERN SOCIALISM 

and employers. What right has any part of the com- 
munity to allow any part of its quota of citizens to be 
reared in ignorance or to suffer even one potential genius 
to be lost to the community? The next few years will see 
not only a great improvement in common schooling but 
also the doubling or trebling of our expenditure on higher 
education. 

Only by the enforcement of some such national minimum 
of subsistence, leisure, sanitation, and education will modern 
industrial communities escape degeneration and decay. 
Where life is abandoned to unfettered competition, what is 
known as " Gresham's Law " applies the bad drives out the 
good. To prevent this evil result is, as both Europe and 
America are discovering in the twentieth century, the main 
function of Government. To enforce the national minimum 
will, moreover, not interfere either with the profits or with 
the freedom of development of the exceptional man, while it 
will enormously increase the prosperity of the community. 
Nor does it abolish competition. What it does is to transfer 
the competitive pressure from the actual means of subsistence 
of the masses (where it works little but harm), to the intellect 
of every one who has any, in the degree that he has it (where 
it sharpens the wits). 

This remedy for the dangers of modern industrialism the 
Policy of the National Minimum involves, it will be seen, a 
great extension of Government activity, a great advance in the 
efficiency of both legislative and executive machinery, and 
no little change in constitutional forms. All this will be 
difficult enough. Moreover, the consumer, as a consumer, 
remains unprotected. Hence, whilst the mere enforcement 
of the national minimum adequately solves the problem 
presented by the sweated trades, it may be found not com- 
pletely to answer for those at the other end of the scale, in 
which great Trusts have been organized. It may, therefore, 
well be easier, in one industry after another, to take over the 
Trust into direct public ownership, as one nation or another 



S. AND B. WEBB 113 

has already done in the case of railways, telegraphs, telephones, 
ocean cables, steamboat lines, water, gas, electric and hydraulic 
plants, and what not. One way or another the people must 
collectively control the industry by which they live, or, for large 
masses of the community, every hope of genuine freedom and 
civilization will disappear. 



WHETHER CLASS ANTAGONISM IS 
SOFTENING DOWN 

BY KARL KAUTSKY 

This is 5 of Kautsky's Sozialreform und soziafe Revolution, 
which, with its sequel Am Tage nach der soc/alen Revolution, has 
been translated into English by J. B. Askew. 1 Together they form 
the best existing presentation of the Marxian standpoint to-day ; on 
account, not only of their ability, but of their Continental vogue, which 
amounts to a vast popular ratification. 

Perhaps no Continental sociologist anything like as interesting 
as Kautsky is so little known or appreciated in England. In the 
German party, of whose official review, Die Neue Zeit, he is editor, he 
has long exercised a unique influence. Among his other typical works 
may be mentioned Das Erfurter Programm in seinem grundsatzlichen 
7 'heil and Die Agrarfrage. 

LET us examine in the first place the objection : The social 
antagonism between the middle classes and the proletariat 
tends to diminish. I will here pass over the question of com- 
mercial crises, of which it was predicted some years ago that 
they would become weaker. This view has since then been 
so emphatically refuted by undisputed facts, that I am in the 
position to forego on that head all further discussion, which 
otherwise would have taken us too far out of our way. Nor 
am I going to make any further contribution to the debate on 
the already ad nauseam discussed theory of the progressive 
increase of misery, which, with a little ingenuity, could be 

1 The Social Revolution. London: Twentieth Century Press. 
114 



KARL KAUTSKY 115 

debated for ever, and in which the debate turns more on 
interpretation of the word " misery " than on the recognition 
of certain facts. We Socialists are unanimous in this, that the 
capitalist mode of production, when left to itself, has for its 
result an increase of physical misery ; equally unanimous, 
however, are we in the opinion, that even in the present 
society the organization of the working-class and the interfer- 
ence of the State are in a position to check this misery ; finally, 
we all agree that the emancipation of the proletariat is to be 
expected not from its increasing decadence, but from its growing 
strength. 

Another question, however, is that of the growing antagonism 
between the bourgeoisie and the proletariat. This is, in the first 
place, a question of the increasing exploitation. 

That this does increase has already been shown by Marx a 
generation ago, and has, so far as I know, never been refuted 
by anybody. Those who deny the fact of the increasing ex- 
ploitation of the proletariat must in the first place be able to 
back their words by a refutation of Marx's Capital 

Now, certainly, it will be said in objection to this that all 
this is but so much theory ; we only recognize as true and 
demonstrated what we can grasp for ourselves. We do not 
want economic laws, but statistical figures. These are not 
easily found. It has not yet occurred to any one to demon- 
strate statistically, not only the wages but also the profits, for 
the very simple reason that the safe is like a castle to the 
bourgeois which, be he even the most cowardly and weak- 
spirited of the lot, he is ever ready to defend like a lion against 
the encroachments of the authorities. 

Nevertheless, we can find some figures as to the increase of 
wages and other incomes. Some of these, the latest which we 
know, shall be given here. They were computed by Mr. A. 
L. Bowley, who read a paper on the question in March, 1895, 
before the London Royal Statistical Society (printed in the 
journal of the Society, June, 1895, pp. 224-285). We take the 
following table : 



u6 



MODERN SOCIALISM 







Incomes not arising from wages. 




Total yearly 






wage-income. 


Subject to income 


Not subject to 






tax. 


income tax. 




Amount 


Per cent. 


Amount 


Per cent. 


Amount 


Per cent. 




in million 


of total 


in million 


of total 


in million 


of total 




pounds 
sterling. 


national 
income. 


pounds 
sterling. 


national 
income. 


pounds 
sterling. 


national 
income. 


i860 


392 


47 


376 


45* 


6 4 


n 


1 866 


464 


45 


485 


47 


81 


8 


1870 


486 


44i 


521 


48 


85 


71 


1874 
1877 


609 


451 
43 


652 


471 


100 

130 


11 


1880 


^567 


42 


652 


48^ 


126 




1883 
1886 


609 
605 


423 
42 


696 
715 


49 
49i 


122 

125 


! 


1891 


699 


43i 


782 


48* 


I 3 


8 



Against this picture many objections may be raised. It 
seems to me too optimistic, and makes the sum of the wages 
come out much bigger than it is or was in reality. 

In reckoning the wages the author did not allow for un- 
employment. He, moreover, took for granted that a number 
of important factors bearing on the conditions of the working- 
classes remained the same wherever the alterations could not 
exactly be determined. As a statistician he had naturally the 
right to do so, but these are precisely the factors which alter 
more and more in a direction unfavourable to the workers. 
Thus, for example, the proportion between male and female, 
skilled and unskilled labour, etc. 

The greatest objection, however, is that the computation is 
limited to but a few trades, all of which, with the exception of 
agriculture, are very well organized, and that the author takes 
for granted that the condition of the entire working-class has, 
on the average, improved in the same proportion as that of the 
organized workers, who, even in England, form a fifth of the 
workers of all trades. It is not uninteresting to consider 



KARL KAUTSKY 117 

the alterations in the wages of this class of workers. The 
rates, in comparison with those of 1860 (the latter taken as 
100), were : 





1860 


1866 


1870 


1874 


1877 


1880 


1883 


1886 


1891 


Agricultural labourers 
Building trades . 
Cotton manufacture 
Woollen industry . 
Iron industry . . 
Engineering . . . 
Gasworkers . 


100 

100 
100 
100 
IOO 
100 
IOO 
IOO 
100 


105 
116 

125 

106 

1*1 

108 
"5 
"3 
(?) 


107 
116 
"5 

112 
127 

no 
1 20 
103 

IOO 


130 
126 
148 

121 

143 

124 

"5 
150 

ISO 


I 3 2 
128 
148 
130 
112 

123 

128 
129 

"5 


122 
125 

*35 
126 

112 

120 
128 
123 
IOO 


117 

125 

146 

120 

1 10 

127 

130 

118 
"5 


in 

126 
i55 
"5 

IOO 

126 
130 

110 
IOO 


nS 
128 
176 

"5 
124 
126 
149 
143 
150 


Miners . . . 


Average . . . 


IOO 


"3 


"3 


138 


132 


124 


130 


125 


140 



We see that the increase of wages by 40 per cent, from 
1860 to 1891, which Bowley calculates for the whole of the 
English working-classes, does not even hold good for the entire 
labour aristocracy. With the exception of the cotton-spinners, 
who in England are not without reason conservative and the 
patterns for all dreamers of " social peace," the average is only 
exceeded by the gasworkers, the sailors, and the miners. The 
gasworkers owe their rise partly to the influence of political 
action, which in larger towns has brought to the municipal 
employees some improvements. In the case of the gasworkers, 
considerations of competition and exploitation through private 
enterprise enter least into account. Partly also the rise in 1891 
must be accounted for by the sudden advent of the "new 
unionism " which aroused so many hopes, but soon fizzled out. 
Still more, even than in the case of the gasworkers, does the 
rise of wages in 1891 appear sudden, almost accidental, in 
the case of the seamen and the miners. With the miners the 
wages were in 1886 on a level with 1860, and in 1891 they 
were 50 per cent, higher ! This cannot be called an assured 
advance. In the case of the workers in the building trade, 



u8 MODERN SOCIALISM 

and the woollen and the iron industries, the increase of wages 
since 1860 falls far below the average. Bowley, therefore, 
wishes us to believe that the wages of all the unorganized 
workers of England rose 40 per cent, in the same period in 
which those of the excellently-organized iron workers only 
rose 25 per cent. ! 

But let us take the figures as they stand. What do they 
prove ? Even according to this quite exceptionally optimistic 
view, wages form an ever-diminishing portion of the national 
income. In the period 1860-74 they form on the average 
45 per cent, of the national income; in the period 1877-91, 
only 43 per cent. Let us assume, for lack of more reliable 
figures, the sum-total of the incomes subject to income tax 
and not arising from wages to be equal to the total amount of 
surplus value. Thus the latter was in 1860 less than the total 
amount of the wages by 16 million pounds; in 1891, however, 
the sum-total of the surplus value was greater than that of the 
wages by 80 million pounds. 

That shows a very palpable increase of exploitation. The 
rate of surplus value, />. the rate of exploitation of the worker, 
would, according to this, have risen from 96 per cent, to 112 
per cent. As a matter of fact, according to Bowley's figures, 
that is the extent to which exploitation has risen in the 
organized trades. The exploitation of the mass of the un- 
organized must have increased to an even greater extent. 

We do not attach any very great importance to these 
figures. But as far as they prove anything at all, they do not 
speak against the assumption of the increasing exploitation of 
labour, which Marx, by another method, and by an inquiry 
into the laws of the capitalist mode of production, has proved 
in a manner not yet confuted. Now it may be said : Granted 
that exploitation increases, but the wages rise as well, if not at 
the same rate as surplus value, how is, then, the worker going 
to feel the increasing exploitation, if it is not patent to his eye, 
but must be discovered by means of a lengthened inquiry? 
The mass of the workers neither carry on statistical researches, 
nor ponder over the theory of value and surplus value. 



KARL KAUTSKY 119 

That may easily be so. And yet there are means by which 
the increase of their exploitation is made evident to them. 
To the same extent as the profits rise, does the mode of living 
of the bourgeoisie improve. But the classes are not divided by 
Chinese walls. The increasing luxury of the upper classes 
trickles gradually through into the lower, awakes in them new 
needs and new demands, to the satisfaction of which, however, 
the slow rise in the wages is inadequate. The bourgeoisie 
bewails the disappearance of unpretentiousness on the part of 
the lower orders, their increasing covetousness, and forgets 
that the increasing pretentiousness in the lower classes is only 
a reflex of the rising standard of life in the upper, that it is 
their own example which has inflamed the covetousness of the 
workers. 

That the standard of life in the bourgeoisie rises faster 
than among the workers, can be seen at every step. The 
working-class dwellings have, during the last fifty years, not 
improved to any great extent, whilst the dwellings of the 
bourgeoisie to-day are magnificent in comparison with an 
average bourgeois house of fifty years ago. A third-class rail- 
way carriage of to-day and one of fifty years ago are not so 
very different in their internal appointments. But compare a 
first-class carriage of the middle of last century with the modern 
Pullman cars. 1 I do not believe that the seaman in an ocean 
steamer is to-day much better off than fifty years ago. But 
certainly the luxury of a saloon of a modern passenger-boat 
was a thing undreamt of even in royal yachts fifty years ago. 

So much about the increasing exploitation of the worker. 
But is not this economic factor neutralized by the two classes 
drawing increasingly nearer to each other on the political field ? 

1 This can hardly be said to apply to England e.g. the G.N.R. or the 
L. and N.W.R., with their third-class dining cars, etc. Of course, that is 
in consequence of the tendency which was so strongly noticeable on our 
railways in the direction of a single class, or, at the most, two classes. 
Prussia still has four, and of the fourth it is quite safe to say that, short of 
having no roof, it could not be worse. Translator. 



izo MODERN SOCIALISM 

Is not the worker more and more recognized by the bourgeois 
as equal to himself? 

Undoubtedly the proletariat gains rapidly in political and 
social respect. 

If its economic advancement has been outdistanced by that 
of the bourgeoisie, and must in consequence necessarily give 
rise to an increasing covetousness and dissatisfaction, the most 
remarkable feature of the last fifty years has, on the contrary, 
been the steady and uninterrupted advancement of the proletariat 
in moral and intellectual respects. 

Only a few decades ago the proletariat stood at such a low 
level, that there were even Socialists who expected from a 
victory of the proletariat the worst results for civilization. 
After 1850 Rodbertus wrote: "There is a very great danger 
at hand lest a new barbarism, this time arising from the midst 
of society itself, lays waste the abodes of civilization and of 
wealth." 

At the same time Heinrich Heine declared that the future 
belonged to the Communists. " This admission that the future 
belongs to the Communists I made in a spirit of uneasiness 
and greatest anxiety, and ugh ! that was by no means dissimu- 
lation on my part. I actually could only think with fear and 
horror of the time, when those dark iconoclasts would attain 
to power; with their horny hands they will break all the 
marble statues of beauty," etc. 

As is well known, things have become quite different. It 
is not the proletariat that threatens modern civilization ; on the 
contrary, it is the Communists who have become to-day the 
surest guardians of art and science, and have often stepped 
forward on their behalf in a most decided manner. 

In the same way the fear which possessed the whole bour- 
geois world after the Paris commune, lest the victorious prole- 
tariat would behave in the midst of our civilization like the 
Vandals of the great tribal migration, and establish on heaps 
of ruins an empire of barbaric asceticism, has practically 
disappeared. 



KARL KAUTSKY 121 

It is partly due to the disappearance of this fear that among 
the bourgeois Intellectuals there is a visibly growing sympathy 
with the proletariat and Socialism. 

Like the Proletariat, the Intellectuals as a class are also a 
peculiar feature of the capitalist mode of production. I have 
already pointed out that the ruling classes need and make use 
of them in so far as they, the ruling classes, have neither the 
interest nor the leisure to attend to the business of the adminis- 
tration of the State, or to apply themselves to art and science, 
as the aristocracy of Athens or the clergy at the best period of 
the Catholic Church did. The whole of the higher intellectual 
activity, which was formerly a privilege of the ruling classes, 
they leave to-day to paid workers, and the number of these 
professional scholars, artists, engineers, officials, etc., is rapidly 
increasing. 

These make up the class of the so-called " Intellectuals," 
the " new middle-class ; " but they differ essentially from the 
old middle-class in that they have no separate class conscious- 
ness. Particular sections of them have a separate conscious- 
ness of their order, very frequently a conceit of their order ; 
but the interests of each of these sections is too particular to 
allow of a common class consciousness to develop. Their 
members ally themselves with the most different classes and 
parties ; the Intellectuals provide each of these with its intel- 
lectual champions. Some champion the interests of the ruling 
classes, whom many of them have to serve in their professional 
capacity. Others have made the cause of the proletariat their 
own. The majority, however, have remained up till now hide- 
bound by the petty bourgeois way of thinking. Not only have 
they often come from a petty bourgeois stock, but their social 
position as a " middle class " is very similar to that of the 
petty bourgeois, namely, a cross between the proletariat and 
the ruling classes. 

These sections of the Intellectuals it is who, as said above, 
evince more and more sympathy with the proletariat and 
Socialism, As they have no particular class interests, and are, 



122 MODERN SOCIALISM 

thanks to their professional activity, the most accessible to 
scientific insight, they are the most easily won through scientific 
considerations for particular parties. The theoretical bank- 
ruptcy of the bourgeois political economy and the theoretical 
superiority of Socialism must have become patent to them. 
In addition, they found that the other classes strive more and 
more to hold art and science in subjection. Many, finally, are 
also impressed by the success, by the continual rise, of Social 
Democracy, especially when it is compared with the continual 
decay of Liberalism. In this way, sympathy with Labour and 
Socialism become popular among the educated ; there is hardly 
a drawing-room where one does not tumble across one or more 
" Socialists." 

Were these circles of the educated identical with the 
bourgeoisie, then certainly we should have had the day won, 
and all Social Revolution would have been superfluous. With 
these classes one could discuss the matter peaceably ; from 
them the slow, quiet development has no violent intervention 
to fear. 

Unfortunately, however, they form only one section of 
the bourgeoisie, and that the one which, though writing and 
speaking in the name of the bourgeoisie, does not determine 
its action. And classes, like individuals, are to be known not 
by their words but their deeds. 

Also it is the least energetic and militant section of the 
bourgeoisie which evinces a sympathy with the proletariat. 

Formerly, of course, when Socialism, even in the ranks of 
the educated, passed for almost a crime or lunacy, bourgeois 
elements could only join the Socialist movement when com- 
pletely breaking with the bourgeois world. Whosoever at that 
time passed from bourgeois circles to Socialism, required much 
greater energy, revolutionary enthusiasm, and force of con- 
viction than a member of the proletariat. In the Socialist 
movement, therefore, these elements belonged as a rule to the 
most Radical and revolutionary. 

Quite different is it to-day, when Socialism has become 



KARL KAUTSKY 123 

fashionable with the drawing-rooms. It requires no particular 
energy, no break with the bourgeois society, for any one to call 
himself a Socialist. No wonder that an ever-growing number 
of new Socialists remain stuck in the traditional modes of 
thinking and feeling of their class. But the methods of war- 
fare of the Intellectuals are different to those of the proletariat. 
The latter can only bring against wealth and the force of arms 
its superior numbers and the solidarity of its class organiza- 
tions. The Intellectuals, on the other hand, are insignificant 
in numbers and without class organization. Their only weapon 
is that of persuasion by word of mouth and by pen ; they fight 
with " intellectual weapons " and " moral superiority," and with 
these weapons the drawing-room Socialists would also wish to 
decide the proletarian class war. They declare themselves 
ready to lend the proletariat their moral support, but on con- 
dition that it gives up all idea of using force, and that not 
only where it has no prospect of success there even the 
proletariat gives it up but even where it has. Hence they 
try to bring into discredit the idea of revolution, and to 
represent it as a worthless method. They endeavour to 
detach from the revolutionary proletariat a Social Reform 
wing, and help thereby to divide and weaken it. 

This, so far, has been the sole result of the commencing 
conversion of the Intellectuals to Socialism. 

By the side of the "new middle-class," the old one, the 
petty bourgeoisie, is still dragging on its existence. This 
species of middle-class was formerly the backbone of all 
Revolution; vigorous and militant, it readily, when circum- 
stances were favourable, rose against any and every kind of 
oppression and exploitation from above, against bureaucracy 
and militarism, against feudal and priestly privileges. It 
formed the advance-guard of the bourgeois democracy. Just 
as a portion of the new middle-class to-day, too, the old one 
was at various times inspired with sympathy for the proletariat, 
co-operated with it, and gave to and received from it intel- 
lectual inspiration and material support. But just as the new, 



124 MODERN SOCIALISM 

so the old one, too, always was an untrustworthy ally, precisely 
because of its intermediate position between the exploited and 
the exploiting classes. As already said by Marx, the petty 
bourgeois is neither a thorough proletarian nor yet fully a 
bourgeois, and feels himself, according to circumstances, now 
the one, then the other. 

From this double situation there arises a split in the ranks 
of the petty bourgeoisie. One position of it identifies itself 
with the proletariat, the other with its opponents. 

The fate of the petty industry is sealed and its decay is 
irresistible. But this shows itself but slowly in the reduction 
of small undertakings, although very rapidly in their ruin. 
Some of the petty owners become entirely dependent on the 
large capital, and turn into mere home-workers, wage-slaves, 
who instead of working in a factory, work for the employer at 
home. Others, especially small dealers and small publicans, 
remain independent, but find their only customers among the 
working-class, so that their existence is entirely bound up with 
the fortunes of the workers. These sections draw more and 
more closely to the fighting proletariat. 

Quite different it is with those sections of the petty bour- 
geoisie which have not yet become completely subjected to 
the large capital, but stand on the verge of ruin, as well as with 
those who look for their customers in other than proletarian 
circles. They doubt their ability to raise themselves by their 
own efforts, and expect everything from above, from the upper 
classes and the State. And, since all progress is a source of 
danger to them, they are bitterly opposed to it in any and 
every sphere of life. Servility and the need for reaction 
makes them ready accomplices and fanatical defenders of the 
Monarchy, the Church, and the nobility. With all that, they 
remain democratic, because only under democratic forms of 
Government can they exercise political influence and secure 
through it the support of the State. 

It is to this division in the ranks of the petty bourgeoisie 
that the decline of the bourgeois democracy is due. A portion 



KARL KAUTSKY 125 

of it joins the proletarian Social Democracy, others the re- 
actionary democracy, which, though flying different colours of 
anti-Semitism, Nationalism, Christian Socialism, of certain 
sections of the Conservative and Centre parties, are never- 
theless always, essentially and socially, the same. 

Many of their phrases and arguments this reactionary 
democracy have borrowed from the Social-Democratic mode 
of thinking, and some at the beginning believed that they 
formed but a special transitional stage from Liberalism to 
Social Democracy. To-$ay this view is manifestly no longer 
tenable. Social Democracy has no more bitter enemy than 
the reactionary democracy. If it has devolved on Social 
Democracy to champion every and any kind of progress, 
whether it directly advances the class interests of the pro- 
letariat or not, the reactionary democracy is by its whole being 
driven to oppose all progress, even where it does not directly 
threaten to petty bourgeoisie. If Social Democracy is the 
most progressive, the reactionary democracy is the most re- 
actionary of all parties, since over and above the hatred which 
all reactionary classes feel towards progress, it is yet inspired 
by the recklessness which comes from crass ignorance of every- 
thing lying outside its narrow mental horizon. To this must 
be added that the petty bourgeoisie succeeds in dragging on 
its existence, thanks only to the merciless exploitation of the 
weaker and most defenceless human labour, that of women 
and children. In this it naturally meets, first and foremost, 
with the opposition of the Social Democracy, which tries by 
organization and compulsory laws to prevent such a wastage of 
human life. 

Thus the petty bourgeoisie, so far as it does not come 
over to Social Democracy, turns from an ally and an inter- 
mediary element between the upper classes and the proletariat 
into a bitter foe of the latter. Instead, therefore, of softening 
down, the class antagonism becomes here as accentuated as 
can be ; indeed, it increases very rapidly, since it is but recently 
that it has become clearly noticeable at all. 



I 2 6 MODERN SOCIALISM 

What is true of the petty bourgeoisie, is also with but 
a few qualifications true of the peasantry. This also splits 
into two camps, one of proletarian (peasant owners of tiny 
plots) and another of propertied elements. It is our task to 
accelerate this process by enlightening the former as to the 
solidarity of their interests with those of the proletariat, and by 
thus winning them over for Social Democracy. We hinder it, 
however, if we ignore it and appeal to the entire agricultural 
population without distinction of class. The reactionary 
democracy in the country, though, perhaps, not always fully 
conscious of this antagonism, is, in its essence, just as hostile 
to us as that in the towns. Those, therefore, who believed 
that the peasant association movement is for the peasants but 
a stage of transition from the old parties, viz. the Centre 
(Clerical) party to the Social-Democratic party, were just as 
mistaken as those who expected the same from anti-Semitism 
in the towns. The middle and large peasant proprietors hate 
the Social Democracy 3 if but for the reason that it champions 
shorter hours and higher wages for the worker, and constitutes 
thereby an important factor which draws the labourer from the 
land and leaves the peasant in the lurch. 

Thus, in the country districts, too, the class antagonisms 
between the propertied class and the proletariat grow ever 
more acute. 

But even more than the antagonism between peasant and 
wage-worker does this hold good of the antagonism between 
the cotter and the large landed proprietor. 

In the system of farming on a large scale the wage-labourer 
plays a far more important part than in the small peasant 
economy. At the same time high prices of the necessaries of 
life are, too, of quite a different value to the former system 
than to the peasant, who consumes the greater part of his pro- 
duce himself. Of course, the opposition between the producer 
and the consumer of the necessaries of life is not that between 
the worker and his exploiter, but between town and country. 
But in town the proletariat forms the most numerous, the 



KARL KAUTSKY 127 

best organized, and the most militant class ; and so the seller 
of the necessaries of life comes here again into direct conflict 
with the proletariat as his most energetic opponent. 

No wonder the big ground landlord thinks of the industrial 
worker nowadays differently to what he did formerly. In former 
times the struggle between the industrial capitalist and his 
workers left him indifferent nay, he watched often with an 
unconcealed malicious pleasure, even with a certain sympathy 
for the proletariat. It was not the latter who then stood in 
his way, but the capitalist, who demanded protective tariffs 
where he, the ground landlord, wanted free trade, and, vice versa, 
looked on ground rent as reducing his profits, and wished to 
snatch from him the monopoly of the better-class positions in 
the army and bureaucracy. 

To-day, all that has changed. The times when there were 
friends of labour among the Tories and the Junkers, the 
Disraelis, Rodbertus, Vogelsangs, are long gone. Like the 
petty bourgeoisie and the class of the middle and large peasant 
proprietors, the big ground landlords, too, have become more 
and more hostile to the labour movement. 

But the capitalist class? This is to-day the paramount 
class. Does not it at least become more friendly to labour, 
like the Intellectuals ? 

I am sorry to say I have not noticed anything of the sort. 

Certainly, even the capitalist class changes; it does not 
remain always the same. But what are the most important of 
its changes within the last decades ? 

On one hand we find a softening down nay, sometimes 
even a complete cessation of the competition in which the 
capitalists of a single branch of industry are engaged throughout 
their particular country, by means of employers' associations, 
trusts, etc. On the other hand, we see the accentuation of 
international competition through the rise of new capitalist 
countries, especially of Germany and the United States. 

The employers' associations abolish competition among 
the masters, not only as against the buyers of their products, 



iz8 MODERN SOCIALISM 

but also as against their workers. Instead of being confronted 
with numerous purchasers of their labour-power, the workers 
have now only to deal with a single master. How much the 
advantages of the employers are thereby increased, and also 
to what extent their opposition to the workers is thus accen- 
tuated, needs no further elucidation. 

According to the last census of the United States, the 
wages of the workers in American industry have, during the 
decade 1890-1900, suffered an absolute decrease. If that is 
so, we cannot be far wrong in attributing it to the work of the 
syndicates and trusts. 

In the same direction, moreover, works the growth of 
foreign competition. Here, too, in addition to the consumers, 
it is the workers against whose interests this development 
proceeds. Over and above the raising of prices by means of 
protective tariffs, which in their turn favour the formation 
of employers' associations, it is the increased exploitation 
of labour by which the capitalists seek to meet foreign com- 
petition. Hence the accentuation of their struggle against 
the militant organizations of the workers, political and trade- 
union, which stand in their way. 

Thus here, too, there is no softening down, but, on the 
contrary, an intensification of the class war. 

To this may be added, as a third factor, the increasing 
fusion of the industrial capital with the money capital, with 
the haute finance. The industrial capitalist is an employer in 
the domain of production (this taken in the widest sense and 
including transport) in which he exploits hired wage labour 
and extracts a profit out of it. The money capitalist is, on 
the other hand, the modern form of the ancient usurer. He 
draws an income from his money, which he nowadays lends 
on interest, not simply to needy private individuals as formerly, 
but also to capitalist employers, local authorities, States, etc. 

Between the industrial capitalist and the money capitalist 
there is a great antagonism, similar to that between the former 
and the landowner. Like the ground rent, the interest on 



KARL KAUTSKY 129 

borrowed capital is a deduction from the profit. The interests 
of both kinds of capital are thus on that point antagonistic. 
Nor do they agree politically. Just as the great landowners 
are to-day in favour of a strong, preferably a monarchical form 
of Government, because so far as they are a court nobility 
they are in a position to bring personal influence to bear on 
the monarch and thereby on the Government ; just as they, 
further, are enthusiastic for militarism, which provides their 
progeny with an officer's career, for which the bourgeois youth 
is less fitted, and always therefore advocate a policy of brute 
force at home and abroad, so in the same way is the high 
finance enamoured of militarism and a strong spirited policy 
both home and foreign. The lords of the money capital need 
not fear a strong State power, independent of the people and 
Parliament, since they can always dominate it as creditors 
and often, too, through personal court influences. They have, 
moreover, an interest in militarism, in wars and national debts, 
both as creditors and Government contractors, because the 
sphere of their influence, their power and wealth, is thereby 
enhanced. 

It is different with the industrial capitalist. Militarism, 
wars, national debts imply increased taxation, in which it has 
to bear a considerable share, or which increase for it the costs 
of production. War implies over and above this a slump in 
the production and sale of goods, business difficulties, often 
bankruptcy. If the financier is rash, extravagant, and a 
supporter of brute force, the industrial capitalist is, on the 
contrary, economical, prudent, and peaceful. A strong 
Government arouses his suspicions, all the more as he cannot 
directly influence it. Not a strong Government, but a strong 
Parliament, answers to his interests. In opposition to the big 
landowners and the high finance he is inclined to Liberalism. 
Its half-and-halfness is his too. Do ground rents, interest, 
taxes, limit his profit on one hand, then the rise of the pro- 
letariat threatens on the other the whole profit system. But 
even in his relations to the proletariat, where the latter does 

K 



1 3 o MODERN SOCIALISM 

not appear to him too menacing, he prefers the peaceful 
methods of " divide and rule," of corruption and attraction 
by means of philanthropic institutions, etc., to violent means 
of suppression. Where the proletariat has not yet struck out 
a line of political action of its own, there the industrial capital 
is only too ready to use it as a battering-ram and as a voting 
machine to increase its own political power. To the petty 
bourgeois the opposition between the industrial capitalist and 
the worker appears of less moment than that between the 
employer's profit on the one hand and the ground rent as 
well as the interest on capital on the other. The abolition of 
interest and the ground rent he looks upon as the solution of 
the social question. 

The opposition, however, between finance and industry 
ceases now more and more, since with the advance in the 
concentration of capital finance gets an ever-increasing hold 
of industry. An important means thereto is the increasing 
supersession of the private employer by the joint stock 
companies. Well-meaning optimists see in this a means to 
" democratize " capital, and thus gradually, and in a peaceful 
manner, without exciting attention, to change it into national 
property. As a matter of fact, it is a means to transform all 
the money of the middle and lower classes, which they do not 
require for immediate consumption, into money capital, and 
to place it as such at the disposal of the big financial money 
capitalists in order to buy out the industrial capitalists. It 
thus increases the means whereby finance can concentrate 
industry in the hands of a few money lords. Without the 
joint-stock company system the big financiers could only 
control those businesses which they had bought with their 
own money. Thanks to the company system, they can make 
numerous businesses dependent on themselves, and thus acquire 
such of them which they would not otherwise be able to 
purchase for lack of cash. The whole fabulous power of 
Pierpont Morgan and Co., who, within the space of a few 
years, have concentrated railways, mines, the greater part of 






KARL KAUTSKY 131 

the ironworks, in one hand, and have already monopolized the 
most important ocean lines of steamers this sudden capture 
of supremacy in industry and transport of the most important 
civilized nations would have been impossible without the 
joint-stock company system. 

According to the London Economist, five men, J. D. Rocke- 
feller, E. H. Harriman, J. Pierpont Morgan, W. R. Vanderbilt, 
and G. D. Gould, possess together over ^150,000,000. They, 
however, control more than i, 500,000,000, while the entire 
capital which is deposited in the banks, railways, and industrial 
companies of the United States amounts to but ^3, 5 00,000,000. 
Thus, thanks to the company system, they control nearly one- 
half of this capital on which the entire economic life of the 
United States depends. 

Now, as always, moreover, the crisis which will not fail to 
reach America will expropriate the small holders, and increase 
and strengthen the property of the bigger ones. 

The more, however, money capital gains control over 
industry, the more does the industrial capital, too, take on 
the methods of the money capital. To the private employer, 
who lives side by side with his workers, the latter are still 
human! beings, whose welfare or the reverse can hardly remain 
quite a matter of indifference to him, if he is not totally 
hardened. But to the shareholder there only exists the 
dividend, The workers are to him nothing but so many 
figures in a computation, in whose result, only, he is interested 
to the highest degree, since it can bring him increased comfort, 
increased power, or a diminution of them and social degrada- 
tion. The rest of the consideration for the worker, which the 
private employers could still preserve, is in his case non- 
existent. 

Money capital is that species of capital which is the most 
favourably inclined towards the use of violent means ; that 
which easiest combines into monopolies, and thereby acquires 
unlimited power over the working class ; that which is farthest 
removed from the workers : it is that which drives out the 



i 3 a MODERN SOCIALISM 

capital of the private industrial employer and gains an ever- 
increasing control over the entire capitalist production. 

The necessary consequence of all this is here, too, the 
accentuation of the social conflict. 

But England will be quoted against me. Do we not find 
in England an increasing toning down of the class antagonisms ? 
And has not Marx indeed said, England is the classic land of 
the capitalist mode of production, which shows us our own 
future? Is not, therefore, the present condition of England 
the one to which we are coming ? 

It is always England which the enthusiasts for social peace 
point out to us, and, curious to say, it is the very same people 
who make us, the "orthodox" Marxists, the loudest reproaches 
for clinging blindly to Marx's formulas, that think of demolish- 
ing us in the most decisive manner by the above formula of 
Marx. 

As a matter of fact, however, the circumstances since 
Capital was written have altered enormously. England has 
ceased to be the classic land of capitalism. Its development 
approaches ever nearer and nearer its culmination ; it is being 
overtaken by other nations, especially Germany and America, 
and now the relation between them begins to change. England 
ceases to give us a picture of our future, while our conditions 
begin to show England's future as regards the capitalist mode 
of production. This it is which an examination of the actual 
circumstances shows to those " orthodox" Marxists, who do 
not blindly repeat Marx, but apply his method in order to 
understand the present. 

England was the classic land of capitalism, that in which 
individual capital first attained supremacy. It came to 
supremacy, overpowering economically not only the other 
classes of its own country, but also the foreign countries. 
Thus it was able to develop those peculiarities which I have 
described above as its own, in the freest way. It gave up the 
holding down of the working class by force, and applied itself 
far more to the task of "peaceably" dividing them, by bestowing 






KARL KAUTSKY 133 

on their stronger and better organized sections political 
privileges, and seeking to buy and to corrupt their leaders by 
friendly compromise a policy which too often succeeded. 
It gave up force and violence abroad, and peace and free trade 
became its motto. It lived peacefully with the Boers, and 
even finally put on the air of wishing to expiate the centuries 
of wrongs inflicted on Ireland by granting to it Home Rule. 

But in the mean time foreign competition has become 
stronger, in many ways too strong, and this forces the capitalists 
to try to get rid of all resistance to their exploitation at home, 
and at the same time to secure markets by force. Hand-in- 
hand with this, the high finance steadily gets more and more 
powerful in the domain of production. England has conse- 
quently become of a different complexion. " The spirit of the 
time," states Mr. and Mrs. Webb in the Soziak Praxis (March 
20, 1902), "has in the last ten years become adverse to the 
' collective self-help ; in the relations between employers and 
employed, which distinguished a previous generation. Nay, 
public opinion in the propertied and professional classes is, 
in fact, more hostile to trade-unionism and strikes than was 
the case a generation ago." 

As a consequence of this change the trade-unions are now 
most seriously limited in their efficiency by the English courts 
of law. In place of free trade there is now a tendency to raise 
the price of the necessaries of life by a customs tariff; the 
policy of colonial conquest begins afresh, and with it coercion 
in Ireland. Only the remodelling of the army on Prussian 
lines remains to be done, and then England will follow in the 
train of Germany in her Polish policy, her customs policy, her 
social policy, her foreign policy, her military policy. 

Does not that show clearly that it is possible to study the 
future of England in Germany (and also in America), that 
English conditions have ceased to paint our future? The 
stage of the " softening down of the class antagonisms " and 
of the opening of the era of " social peace " was confined to 
England, and is even there a thing of the past. Gladstone 



134 MODERN SOCIALISM 

was the most prominent representative of that policy of con- 
ciliating antagonisms by concessions, which corresponded to 
the mode of thinking of the industrial capital of England then 
dominating economically all other classes and countries. The 
most prominent representative of the new methods of money 
capital now fighting for supremacy is Mr. Chamberlain. It is 
among the strangest ironies of history that the Gladstone 
stage of social development is held up for our admiration in 
Germany as our future and as England's achievement never 
to be lost, at the very time when the Gladstone heritage 
crumbles into dust, and Chamberlain is the hero of the 
English people. 

I will openly confess that I, too, formerly had laid great 
hopes on England. Though I did not expect that the Glad- 
stone era would ever pass to Germany, I did, however, hope 
that in England, in consequence of its peculiar conditions, the 
evolution from capitalism to Socialism would proceed not by 
means of a social revolution, but peacefully by a series of 
progressive concessions to the proletariat on the part of the 
ruling classes. The experience of the last few years has 
destroyed my hopes for England too. The English home 
policy now commences to shape itself on the lines of their 
German rivals. May this, also, have a corresponding effect 
on the English proletariat. 

We now see how far the assumption of a gradual softening 
down of the class antagonism, of an approach between the 
bourgeoisie and the proletariat, is justified. It turns out to 
have been not wholly without foundation in fact, but its 
mistake lay in that it generalized facts which were limited to 
a narrow area. It substituted a small section of the Intel- 
lectuals for the entire bourgeoisie, and represented a particular 
social tendency of England, and that already belonging to the 
past, as the general and ever-growing tendency of the entire 
capitalist mode of production. 



XI 

SOCIAL REFORM IN GERMANY AND 
IN FRANCE 

BY G. VON VOLLMAR 

An address delivered at Dresden, Feb. 7, 1901. 

Georg von Vollmar is the leader of the reformist Socialists in 
the German Reichstag, and of the Socialists generally in Bavaria. 
He is by birth an aristocrat ; and is an ex-officer of cavalry. After 
the dismissal of Bismarck, when the Imperial Government showed 
signs of embracing reform, he exerted himself to render its co-opera- 
tion with the Socialists easier. At the Erfurt Congress (1891) he 
championed reformism against the Marxism of his colleagues in a 
set of remarkable speeches. 

Of Millerand's Ministerial activity, here outlined, a fully docu- 
mented account, by an intimate friend, is given in L'CEuure de Millerand, 
par A. Lavy (Paris, 1902). 

IN political life few words are so much in use to-day as 
the words "social policy" and "social reform." They are 
on the lips of all ; Governments, Parliaments and Ppesent 
parties, Science and the Church, acknowledge popularity 
them. A regular rivalry goes on over the disin- 
herited classes. No one desires anything but the 
good of the workers. Industry, as only lately again a great head 
of industry explained in the Reichstag, pursues its task not for 
the sake of profit, but chiefly in the interests of its workmen. 
The Agrarians assert that they demand higher duties on 
bread-stuffs and other country products, not from ordinary 
self-interest, but especially that they may pay the agricultural 

135 



136 MODERN SOCIALISM 

labourers better wages. Societies are formed on a greater or 
less scale, with a more or less mixed membership, which 
indicate the furthering of social reform and social policy as 
their particular object. With loud flourishes of trumpets upon 
every occasion people proclaim the "social monarchy," and 
remind us, that in Germany the princes, particularly the Kings 
of Prussia, have always been princes of the poor, and have 
treated the welfare of the destitute classes as the first object of 
their rule. 

All this has not always been so. When the Social 
Democratic party arose at the beginning of the 'sixties and 
Contrast ^ e g an ^ s activity, the words " social policy " and 
with the " social reform " were as yet very little known and 
little understood - Rather, with the exception of 
this party arising out of the working-class, and of a 
small number of far-sighted men of scientific or philanthropic 
bent, people were then pretty generally of opinion that many 
things in politics and economics might be altered, but certainly 
the State had not to " socially reform " anything. 

Liberalism in economics was then busy demolishing the 
crumbling ruins of the older economic conditions, bursting the 
bonds of long obsolete systems which cramped Germany's 
economic life, and liberating the economic forces in order to 
enlist them in the service of the wholesale production by 
capitalists which was being developed. That new politico- 
economic institutions and organizations had to replace the 
old, that a new edifice had to replace the one which was 
demolished, was such a flat contradiction of the then dominant 
Manchester School, that, with the exception of the Social 
Democracy, and the solitary wayfarers already mentioned} 
hardly any one thought such a thing possible. According to 
the conception of that time, the sole rule of economic life was 
to be the "free play of forces," which must regulate the pro- 
duction and consumption of goods, the relation between 
capital and labour, and the distribution of the national wealth, 
in the only way possible and the best way conceivable. The 



G. VON VOLLMAR 137 

economic sphere belonged exclusively to private activity, and 
the State with its legislation and government had nothing, or 
virtually nothing, to do with it nothing more than to get 
rid of the obstacles checking the free development of eco- 
nomic forces, to smooth the way for the unimpeded turning 
to account of capital and labour, to promote transport and 
trade, to safeguard acquired wealth and its enjoyment, and to 
keep the masses of the working people nicely in order. In 
this scheme the relation between employers and workers was 
quite a private concern, ,. and the labour contract purely a 
subject of private law. Buying and selling of labour was a 
simple market proceeding, which, like the sale of any other 
wares, was determined exclusively by the economic laws of 
supply and demand. To wish to interfere and disturb this 
proceeding on behalf of the State seemed then a wrong to the 
national welfare, and just as senseless as resistance to any 
other natural law so that at that time people treated the 
Social Democrats much less as enemies of the civil and divine 
order of things than as poor fools, who wished in their in- 
fatuation to mutiny against the eternal laws of capitalistic 
production. 

Since then, in spite of all which we may otherwise deplore, 
a far-reaching change has been accomplished in public 
opinion. For, though plenty of relics and traces 
of the conception I have sketched are still with us, 
and continue operative under altered names and Germany by 

shapes, yet to-day the actual Manchester doctrine a general 

' * belie fin 

is in principle vanquished. Under the pressure, state inter- 
on the one hand, of the economic development, ferenee. 
which, along with the gigantic rise of the capitalistic form of 
production, exhibited more and more clearly those sides of it 
which injure society ; and, on the other hand, under the rapidly 
and unceasingly augmented influence of the Social Democracy, 
which from a small sect developed into the largest party in 
the Empire, and penetrated all relations legislation and 
government, and political life as a whole have been impelled 



138 MODERN SOCIALISM 

upon quite another path. To-day, however far its execution 
may lag behind in practice, in principle, at least, the Socialistic 
conception has prevailed, that economic life is not a sacred 
preserve for purely private interests, but rather the first, funda- 
mental, and therefore most important factor in the life of 
society, and that consequently the State, as the organ of 
society, has the right and the duty to interfere and regulate 
economic enterprises wherever the interest of society makes it 
seem needful and requisite. People had with this to acknow- 
ledge the principle, that the regulation of relations between 
employers and workmen for the protection of the working 
classes, who at once form the chief class in society and as 
against the great power of capital are at a disadvantage, is 
among the most essential objects of the State. 

No doubt it has cost much work and severe struggles for 
things to reach this point, for this conception to vindicate itself 
in the face of the united opposition of the employers, the 
The Anti- ruling classes, and the power of the State. When 
Socialist the Social Democracy, in the later 'seventies, began, 

LfLAV 

contrary to their opponents' expectation, to grow 
quickly and to assume a size which seemed to menace the 
ruling classes, the well-known attempt was made to suppress 
this party and its social and politico-economic doctrines by 
force. The exceptional law was passed against the Social 
Democracy. It burdened us twelve years, and demanded 
numberless sacrifices, but effected the exact opposite of what 
was desired. At its close the party had grown many times the 
stronger for it. Certainly the authors of that law showed a 
great amount of infatuation and shortsightedness. But its 
prime author, the then Imperial Chancellor, Prince Bismarck, 
by the side of his whole failure to understand the working-class, 
its life and struggles, and the entire tendency of the economic 
development, nevertheless grasped this much, that nothing 
was to be accomplished by the use of violent suppression only 
Accordingly he declared that certain "positive" measures of 
social reform must go hand-in-hand with it. 



G. VON VOLLMAR 139 

Thus originated in Germany the Workmen's Insurance 
legislation. The reproach has often been made against the 
Social Democracy that it voted against the several Bismarck's 
insurance laws; and even now there are anti-Socialist social policy, 
orators of the lower sort, who, for want of better arguments, try 
to make out the Social Democrats to be " workmen's enemies " 
on account of this attitude. But for whoever considers this 
matter thoughtfully, the necessity of our attitude at that period 
is as clear as daylight. The Workmen's Insurance legislation 
came in at the time of tfce most severe, reckless Attitude of 
persecution of the Social Democracy ; that time of the Sociai- 
the "white terror," when not merely the Social iststoit ' 
Democracy incurred the repression, but the burden ot the 
exceptional law in the interest of the employers was applied 
against every effort of the working-class, however organized; 
when the smallest trade-union occupying itself with the 
narrowest professional interests was dissolved; when no 
workmen's newspaper was tolerated, however moderate ; when 
the Government, in the words of the then Prussian Minister, 
Von Puttkamer, saw "behind every strike the lowering hydra 
of revolution " in brief, when there no longer existed a 
public working-class movement. Against a Government pro- 
ceeding in that way ours could only be war to the knife, 
and everything must then resolve itself into the question of 
strength. There was another thing besides. Bismarck in- 
stituted workmen's insurance with the avowed intention, not 
of satisfying urgent demands of the workers, but of furthering 
the interests of his own domination. He thought that when 
he converted millions of workmen into small income-receivers, 
he would succeed in interesting them in the State as he 
conceived it (i.e. in the State as it was at the moment, and 
the Government then in power), in detaching them from the 
life of their class, and in making them props of what is called 
"civil and social order." The result could only be an un- 
limited distrust on our side. And so the many and mis- 
chievous defects in those laws, of which no small part are 



HO MODERN SOCIALISM 

still unremoved to-day, had all the greater weight, and 
necessarily impelled us to vote against them. 

Since then affairs have gradually altered. It is true there 
is still a state of war between us and the Government and the 
ruling parties. But even war has its degrees ; you may carry 
it on in modern-European style somewhat as happened in 
Possibility J ^7 between Germany and France or in the 
of a less style which the English now adopt in South Africa, 
tudenow" 1 " or that which, together with the other Powers, 
Germany is at this moment adopting in China. 
To-day, then, a state of war within rules has replaced the 
purely barbaric war of annihilation. Moreover, thanks to the 
force of economic facts and our own strength, we have 
succeeded in frustrating the object pursued by the Govern- 
ment in the insurance laws. The German working-class has 
not let itself be tamed and made subservient by receiving 
little insurance annuities, but asserts its just demands with all 
the greater vigour and with growing certainty of success. 
Thereby the Workmen's Insurance legislation has lost for us 
the character of a question of strength. We can treat it 
quite practically, and recognize the useful element which in 
it is mixed up with the bad. Thus last year we were able, 
though after much consideration, to vote for the latest 
additional laws on insurance against accidents and disable- 
ment; which, as it was, contained some not unreal ameliora- 
tions for the workers, and if the parties of the majority had 
been well disposed, might easily have contained more. We 
did not, and do not, let ourselves be deterred by our opposi- 
tion to the Government from examining quite practically such 
measures affecting the life of the working-class. And just as 
often enough already we have had to be the defenders and 
special supporters of these laws, which are now so inseparably 
bound up with our working-class life, against their supposed 
inspired authors, so we shall always most decidedly insist on 
this legislation securing increased benefits for the workers 
through its necessary extension. 



G. VON VOLLMAR 141 

But even if one were willing to assign to the Workmen's 
Insurance legislation more actual significance than in its 
present defective state it possesses, only ignorance Genepal 
or wilful deception can pronounce it the most attitude of 
essential thing which the workers demand, and s ^ sm to 
act therefore as if Germany's insurance laws reforms- 
placed her in the front rank of social reform, insurance, 

. ., j u housing.etc. 

No, insurance against illness, accidents, and old 

age, important as it is in itself, can as little be the main thing 
as, for instance, can the provision for housing, latterly becoming 
more and more urgent no matter how high the importance 
of the housing question must rightly be appraised. Of late 
people are recognizing, even in some quarters that are opposed 
to us, how deplorable the housing conditions of the working- 
class mostly are, so that the joy of life, the sense of family, 
morality, health, and even existence are buried beneath them. 
All the same, and although in this question also we are ready 
to collaborate practically if it is seriously taken in hand, it 
can never claim more than the significance of a question of 
economic detail. 

The essential, the core of the right social policy is and 
thither the effort of every worthy social reform must tend to 
enable the working-class increasingly to influence Socialistic 
the shaping of the wage contract, and with it the essentials, 
process of production itself. That is secured first by a genuine 
State protection of the workers, and next, hand-in-hand with it, 
by the organization of the working-class. 

Among us, it must be admitted, protection of the workers 
is talked about a wonderful deal. Any one willing to believe 
the employers, who treat even the faintest State protection 
interference as a theft of their hereditary rights, of workers, 
or to believe the boasts of the Government, might perhaps 
think already that nowhere in the whole world were the 
workers as well off as with us. Recently in the Reichstag, 
Herr von Kardorff who, of course, is the deputed repre- 
sentative of Herr von Stumm stated in a somewhat exalted 



1+2 MODERN SOCIALISM 

metaphor, that in Germany the car of social reform is now 
rushing on " at a frantic gallop," and the time when the 
proletarians shall manage the world's business seems at 
hand ! Unfortunately, things are really quite otherwise. 

Eleven years ago there was once a time, when it seemed 
as if in Germany, too, people wanted to take a full stride 
The present forward. At that time thoughts like these were 
Emperor's proclaimed by an influential personage : l " The 
thusLsm workers have the natural right to improve their 
for social position as far as they can, and to secure them- 
selves the greatest possible gain out of the gain 
accruing to industry from circumstances. The complaints 
and wishes of the workers are to be examined from the 
standpoint that it is the object of the State authority so to 
regulate the times and types of work as to assure the 
conservation of health, the requirements of morals, the 
economic needs of the workers, and their claim to equality 
with the employers before the law. The workers should 
share in the regulation of the common interests of industry 
through representatives who enjoy their confidence, and should 
be made capable of safeguarding their interests against the 
employers and the authorities. The State businesses should 
be developed into model businesses genuinely solicitous for 
their workers. International conferences should be promoted, 
to discuss the protection of the workers," etc. Now, for us, of 
course, these matters were nothing new ; for decades we Social 
Democrats had proclaimed these and similar principles, and 
were constantly denounced and resisted by the Government 
and the employers for doing so. But it was given to be under- 
stood that these principles were now at last acknowledged by 
others, and we were ready obviously without in any way 
renouncing our further aims loyally to help in the advance, 
and to further it according to our power. 

But it only too soon appeared how well founded were the 
doubts, which had at once forced themselves on us in reference 

1 The present Emperor, William II., is of course meant. 



G. VON VOLLMAR 143 

to the realization of these beautiful programme principles. 
Prince Bismarck, when he shortly afterwards was dismissed 

from office, and sat sulking in his Saxon forest, 

j ., . . , . ' Change of 

is known to have expressed the opinion that all theEm- 



these announcements were only intended to 
influence the votes of the electors. Others, 
again, have maintained that the words were meant seriously 
at the time of their utterance, but that the working-class was 
expected to be unable to contain itself for rapture, and the 
Social Democracy to wheel round a tempo into the ranks of 
the parties of order. 1 However that may have been, this 
much is certain, that the inspiration of the moment was soon 
much diluted. When eventually the very employers, who 
otherwise pose so strongly against the Social Democracy as 
props of authority and the throne, mutinied in public, and did 
not hesitate, in case some check was not put on the influen- 
tial personage's leanings towards the Social Democracy, to 
threaten point blank a " revision of the monarchical senti- 
ment," then the taste for a serious social reform soon 
perished. And when the travailing mountain at last gave 
birth, quite a tiny little mouse came to light though a mouse 
which even so was far too big for the employers. Once for 

all to take from Government the liking for such 

, Victory of 

vagaries, the gentlemen who now knew themselves the reae- 

to be completely uppermost in the way which tionap y em- 
we have had strikingly illustrated these last few 
weeks d-propos of the discussion of the famous 12,000 marks 
affair 2 got rid of the extremely tame social-reform Minister, 
Von Berlepsch. Then came in for Prussia Herr Von Brefeld, 
and for the Empire, Count Posadowsky, and the latter made 

1 Staatserhaltenden Parteien the phrase still regularly used to denote 
the non-revolutionary parties, as opposed to the Social Democrats. 

* Certain officials in the Imperial Department of the Interior accepted 
1 2,000 marks (.600) from the Central Federation of German Manufacturers, 
in order with it to promote agitation on behalf of the Labour Bill introduced 
May 26, 1899. 



1 44 MODERN SOCIALISM 

a right-about declaration in his very first speech : that hence- 
forward progress in social policy must be slow and con- 
siderate, and that it did not do to institute social reforms 
without first being assured of the assent of the employers, i.e. 
the sheepfold should in future be " protected " in concert with 
the wolves. 

With that ensued a time of complete stagnation in social 
policy. The coercionists of the great industry set the fashion ; 
Consequent their interest was most completely impersonated 
stagnation by Herr von Stumm; and the Junkers, always 
reform in ready for any reactionary business, supported 
Germany, them. By their open and occult lobby influence 
in the Reichstag as well as with the Government and at the 
Court they were able to impede every detail of progress. 
Not content with that, they sought, in order to subjugate the 
workers still further, to deprive them even of their few rights ; 
this was the object of the " Revolution " Law, and later on, 
of the " Prison-house " Law ; not forgetting the constantly 
renewed demands for the removal of universal, direct, equal, 
and secret suffrage which could only be carried through by 
a direct violation of the constitution. Fortunately, the coer- 
cionists of the great industry have at present not proved strong 
enough to realize these plans. But, far as I am from wishing 
to draw needless spectres on the wall, and to threaten dangers 
without foundation, I must point out that the demands for 
laws of coercion and exception are by no means silenced yet ; 
only recently the old craving for them was again expressed in 
the Prussian Lower House. Repression is the last resort of 
the wise and the one help of the coercionists, Junkers, and 
violent politicians of every sort, who have learned nothing 
from the Anti-Socialist Law. The acts and impulses of these 
people will, therefore, have to be watched, if we are not to be 
taken by surprise some day. 

After years of a complete standstill the protection of the 
workers began gradually to be mooted again ; but only started 
moving on the one-inch scale, under countless checks and 



G. VON VOLLMAR 145 

hindrances, by very tiny strides. The results were merely 
petty work, details of execution. The best that we have got 
from this period still is the slow extension of factory inspection 
and the law on industrial tribunals., though there are great 
defects in the latter which have since been accentuated by the 
extension of the arbitration courts for corporations. Nothing 
has been said of introducing new elements into social legisla- 
tion. That effort of the workers which, next to organization, is 
the most important of all, the regulation of the hours of labour 
by law, has so far made no progress. As little have we 
succeeded in obtaining our old demand, seemingly so obviously, 
for the introduction of a legal representation of the working- 
class in Chambers of Labour. So, again, as to parity of treatment 
for manual and industrial workers; as to the extension of 
workmen's protection to home-work, shop employment, inn 
employment, domestic service, and other categories of work ; 
more than all, as to the equalization before the law of public 
employees and those of private businesses. As for the right 
of combination, no doubt it exists on paper ; but of its effec- 
tive realization and its urgently needed safeguarding against 
capitalistic mastery nothing is yet said. 

Things are no better, as regards the attitude of legislation 
and Government towards the organization of the working- 
class, which is primary and of such fundamental Hostility of 
importance, that if needful it can make good a theGovern- 
series of otherwise defective conditions, forming *^* 
both the means of securing all sorts of protection tionofthe 
for the workers, and the necessary preliminary wopkeps 
for turning it to good account. For unless the working-class 
acquires the framework of powerful organizations, and unless 
these exercise vigilance, initiative, and active strength, even 
relatively useful ordinances of law remain for their largest and 
best part dead letters. Now that the opposition of interests 
and the war between capital and labour are with us and are 
no longer to be banished from the world, it is to the public 
interest, over and above the aims of the working-class, that 



1 46 MODERN SOCIALISM 

this war should as far as possible assume regulated forms. 
To enable economic and social struggles to be carried out 

fruitfully and without needless expenditure of 
Such organ- . _ . . 

Izationisin strength and sacrifice, it is necessary to replace 



inexperienced, incoherent masses blindly stagger- 
ing from passion and excitement to despair, by an 
aggregate of workers who know what they want, who have a 
common mind, education, and self-discipline, as well as the 
insight into the whole situation requisite in order to estimate 
accurately the strain entailed upon their strength and the 
prospects of gain from it. From this point of view an en- 
lightened Government should itself further the trade-unionist 
organization of the workers, or at least secure to it a minimum 
of disturbance. Instead, our governing circles in Germany 
regularly evince extreme distrust, and generally even public 
hostility, towards the trade-unions. Every possible hindrance 
is put in the way of their activity, while the quite inadequate 
right of association and combination is worn out in opposing 
them: juristic personality is withheld from them, and their 
members are excluded from public employments. 

To be fair, I will point out that the situation is not wholly 
the same over the whole empire, but that in some of the allied 
Greater States may be noticed definite, though modest, 

social pro- beginnings for the better. While in Prussia, Saxonv, 
gress in * ' 

South etc., the trade-unions are systematically ignored 

Germany. ^y tne inspectors of industry, in South Germany 
the inspecting officials are officially in touch with the workers' 
organizations trade-unions, grievance committees, 
an d especially workmen's secretariates ; they claim 
inspectors their collaboration in carrying out the protection 
of the workers, executing statistical work, etc.; 



Baden and they attend workmen's meetings, sometimes even 
address them, and testify publicly to the utility and 
indispensability of organizations for the social elevation and 
culture of the working-class. The remarkable activity of the 
Baden inspector, Worrishofer, is known to you, and some other 



I 



G. VON VOLLMAR 147 

inspecting officials display an activity in social policy which 
deserves recognition ; in Bavaria we have now a disposition to 
centralize the industrial inspectorate, and form a real depart- 
ment of social policy in the Ministry. We have 
further carried the point, that the appointment of c i ass 
assistant inspectors out of the working-class, as assistant 
well as the workmen's right to participate in the 
inspection of building and mining, is at least recognized in 
principle, though its execution still leaves much to be desired. 
At any rate, in various larger cities a number of workmen are 
already acting as official building-inspectors, among whom, 
for instance, in Munich there are men enjoying the con- 
fidence of the masons' organization ; and people seem willing 
to let mining-inspectors be elected by the workmen's com- 
mittees. Notoriously, the inferiority of workmen before the 
law is shown with peculiar suggestiveness by the fact that, 
while otherwise the introduction of drastic rules is preceded 
by a consultation of all possibly interested parties Agrarians, 
men on the Stock Exchange, heads of industry, consuita- 
master mechanics only the workmen are regu- tionoftha 

WOT*IC6PS 

larly not invited. This bad custom we have at before 
last succeeded in breaking through; both before legislation, 
the issue of the new Bavarian building regulations and before 
that of the new mining regulations, conferences were called by 
the Ministry, to which, besides officials, representatives both of 
workmen and employers were invited. We have formulated 
the further demand, that they should proceed systematically 
in this direction and establish a special ministerial department 
for labour questions, which should not consist merely of 
professional officials, but should have among its members an 
equal number of workmen and employers, to take part in the 
preparation of laws and ordinances. Although the Govern- 
ment thought that this was too much all at once, and that they 
could not proceed " so far," no contradiction of the principle 
was advanced. In Hesse the demand mentioned has already in 
part been granted, while a number of workmen's representatives 



148 MODERN SOCIALISM 

have for definite objects been called into the Ministry. In 
Bavaria the hours of work in the workshops of the railway and 
Hours of military department have been reduced to 9^ no 
state doubt, I admit, an insufficient reduction, but any- 

eraployees, how afc j east a beginning ; the eight hours' day for 
miners, which was already voted by the Lower Chamber, was 
unfortunately lost again through the opposition of the First 
Chamber and the weakness of the Centre Party. The right of 
state con- combination for workmen in firms in whose work 
tracts the State is concerned, has (besides through resolu- 

ciauses. tions of gtate p ar ii ame nts) obtained a practical 
recognition in the fact, among others, that in Hesse and 
Bavaria (I do not know whether elsewhere) the Government 
gives out its printing only to firms which pay the Printers' 
rates. Further, in regard to public gratuitous employment 
Em lo - agencies something has been done; the labour 
ment bureaux in Stuttgart and Munich :in connection 

agencies. w j tn a committee of workmen's and employers' 
representatives work for the removal of harmful private 
employment agencies ; and latterly more attention is paid to 
the extension and centralization of labour intelligence over the 
country ; with cheap travelling tickets for men seeking work. 
And there are other things of the same kind. 

But in the greatest part of Germany, especially in the 
leading country of Prussia, little or nothing is to be observed 
of such dispositions for the better. And thereby those States, 
which show more insight into social policy, and whose proceed- 
ings are denounced as " a bad example," are hindered from 
proceeding faster and more vigorously with their improvements. 

At present that is, in the last few years in spite of all 
opposing difficulties, trade-unionism has expanded 
tion of in a powerful and extremely welcome way ; though 

workers; one s h ou ici beware of exaggerating it, for there 
growth in is still only a small percentage of workers pro- 
spite of fessionally organized, and the division of their 
hostility, forces through the introduction of party-political 



G. V 7 ON VOLLMAR 149 

and religious points of view robs the movement of a great 
part of its strength. But to the improvements which trade- 
unions have been able to secure in the situation of the 
workers, not only has the State contributed absolutely nothing, 
but every inch of progress has had to be wrung by constant 
fighting from the political as well as the economic potentates. 
We have not yet realized the legal equality of the workers, 
which exists on paper, but is more or less openly disputed 
by most employers. Employers great and small still regard 
themselves as " bread-givers," and want to be " masters in 
their own house," i.e. to settle conditions of labour dicta- 
torially, and treat the workers as subjects, or rather as mere 
chattels. The private rights of the employer still infringe 
the public rights of the worker, who to keep his wage has 
to sell the political rights which the laws of the State give 
him ; people of the type of Herr von Stumm assume the right, 
because they let " their " workmen live, of lecturing them on 
their most private concerns, telling the worker what he may 
read, what public-houses he is to visit, when he may marry, 
and so on. In this respect we stand in Germany to-day where 
the English workers stood many decades ago with, I admit, 
one important exception, namely, that in spite of, perhaps 
rather because of, these conditions, we have in the Social 
Democracy a political organization of the working-class such 
as no other land so far possesses, which forms for Germany 
the first stimulus and the first starting-point for all economic, 
social, and political improvement. 

All this backwardness in social policy 'which I have 
described occurred precisely while Germany stood beneath 
the star of an unparalleled industrial prosperity, stagnation 
while the great industry expanded on a really in social 
gigantic scale, while Germany competed success- {^jJ5J t co " 
fully with England in the world-market, and the with corn- 
national wealth grew enormously. Moreover, our 
backwardness occurred at the very time, when in 
various countries, whose economic development is in some 



150 MODERN SOCIALISM 

ways behind ours, more or less considerable progress was 
made in the sphere of social reform. I will not to-day 
speak of Switzerland, or England, or North America and 
the Australian colonies, interesting and instructive as some of 

their steps in social reform are, and greatly as they 
Social re- . *! 

form in deserve our attention. I will confine myseli to 

France one country, which, in size, is not far behind 
compared. . . , , 

Germany, and in regard to industrial development 

has only lately been overtaken by us, so that it forms a good 
point of comparison. 

In France the anti-Socialistic Manchester School of 
hostility to State interference in the economic sphere exer- 
cised longer a decisive influence, extending indeed to the 
working-class. Political freedom did little with the excep- 
tion of the trade-union law of 1884 to improve working- 
class conditions. For this the traditional schism of the 
Social Democracy into warring sects, and the consequently 
desultory and erratic action of the trade-unions were respon- 
sible. Then came the well-known movement for the revision 
of the Dreyfus case, which gradually developed to a severe 
crisis in the State. The stability of the Republic and its 
The Dre fus ^eral institutions was (as I have elsewhere de- 
ease, and scribed in detail) most gravely imperilled by the 
MUilr 1 and 0f coalition of the generals, the Clericals, and the 
into the Nationalists. In this situation the progressive 

French bourgeois Republicans recognized that only an 
Cabinet. . t . \ . . 1-1 

alliance with the living force of the working-class 

could save the country from the threatened coup d"ttat. And 
so, for the first time in the history of modern Social Democracy, 
the Socialists participated in the supreme government, 
in the well-understood interest of the country and with 
the special object; and Alexandre Millerand entered the 
Waldeck-Rousseau Cabinet as Minister of Commerce and 
Industry. 

It is not to-day my intention to go into the important 
political consequences of this event, which would require a 



G. VON VOLLMAR 151 

special treatment. I will confine myself entirely to the sphere 
of social policy, and show you how France, previously back- 
ward in this sphere, has, thanks to the activity of the repre- 
sentative of Social Democracy in the Ministry, entered on an 
era of energetic protection of the workers, and placed herself 
quite at the head of social reform. 

As to the legal regulation of the hours of labour, there 
were several ordinances in France, but they remained dead 

letters, and were not enforced. For this, not only 

, . J Millerand's 

the Government and the employers, but also the law upon 

workers were to blame ; the latter were very badly hours f 

f . , ,. , - labour, 

educated in respect of social policy, and often 

blindly co-operated with the employers in deceiving the 
inspectors and hindering the enforcement of the laws on 
hours of labour. Thus there was in France practically no 
State-limitation of the working-day, which frequently was of 
twelve, fourteen, sixteen, or more hours, not only for men, 
but for women, and even children. This state of things the 
Socialist Minister soon ended by elaborating a law which was 
speedily adopted by the Chamber and came into force. This 
law introduces a similar normal working-day for all businesses 
in which men, women, and children are employed together ; a 
day fixed at eleven hours for 1899-1901, sinking to ten and 
a half in 1901, and remaining at ten from 1903 onwards. 
Similarly, you know, we German Social Democrats have pro- 
posed in the Reichstag, that the normal working-day be fixed 
immediately at ten hours and then gradually shortened to eight. 
Highly important as is every reduction in the hours of labour 
in the workers' interest and in reference to culture generally, 
opinions may vary as to what number of hours is fitted and 
adapted as a universal standard for a particular country and a 
particular time, in short, for a given stage of development. 
The main thing is for a statutory regulation of the hours of 
labour to gain its ground and be carried out in practice. In 
the works of the post and telegraphs, which were under his 
own department, the French Minister of Commerce at once 



i$i MODERN SOCIALISM 

introduced the eight hours' day ; and the miners have prospects 
of obtaining it shortly. 1 

Millerand took a not unimportant step in a decree about 
the conditions under which in future contractors would be 
Mm d' ass ig ne d public works or might purvey for State 
public eon- purposes. According to these rules, which are 
binding on the State and optional for departments 
and communes, the contracting employers must 
satisfy a series of conditions in favour of the workers whom 
they employ. These are : guarantee of no work on Sunday ; 
drawing up of a percentage of the foreign workmen to be 
permitted; fixing of the normal working-day and the minimum 
wage for every category of workers ; prohibition of piece-work. 
The normal wage and working-day are agreed upon by the 
organizations of workers and employers; where such do not 
exist, a committee composed of workers and employers decides. 
Conditions of work are altered according to locality ; and sup- 
posing, for instance, the local rate of wages in the trade rises, 
the conditions of contracting change correspondingly. If the 
employer for any reason does not pay the wages agreed upon, 
the State makes short work of it, and indemnifies the workers 
by corresponding deductions from the payment due to the em- 
ployer for the job. Further, the Minister has the right to exclude 
contractors who do not observe the labour conditions from 
taking any further part in public works and supplies. 

Insurance of workmen against accidents has in France been 
but lately introduced, and organized quite differently from 
Millerand ours. Although the law expressly ordains that 
and work- the cost of the insurance shall be borne by the 
8 " '" employers, they have in great measure thrown this 



against off upon the workmen by simply deducting the 

insurance premium from wages. Millerand has 

now provided by a circular to the authorities, that this mal- 

1 The French Chamber voted the eight-hours' day for miners on 
February 5, 1902, but it is not yet law. Under M. Combes' Cabinet the 
eight-hours' day has been introduced by M, Pelletan in all dockyards and 
naval arsenals. 



G. VON VOLLMAR 153 

practice shall cease, and the costs of the insurance, which 
belong, like the wages of labour, to the cost of production, 
shall be borne exclusively by the employers. In regard to 
provision for old age, the Government have very recently 
promised to propose a law securing this up to 600 or 700 
francs. 1 

Regarding industrial tribunals a law has for some time been 
in preparation, through which a real constructive improvement 
of these institutions should be effected. In future, 
industrial tribunals are to^have a final jurisdiction andlndus- 
up to 2000 francs, instead of 200 ; and their trial tribu- 
jurisdiction is to be extended to shopkeepers' n 
assistants, railway servants, and all workmen and employees 
of the State, the departments, and the communes, excepting 
the officials proper. The right to vote begins at twenty-one, 
capacity to be elected at twenty-five; and they extend to 
women. The law having been shaped thus in the Chamber, 
the conclusion of the Senate is still awaited. 

Millerand has given his especial care to the trade organiza- 
tion of the workers. He has striven to further trade-unions 
in every way, and to make them representatives of Milierand's 
the working-class, recognized by the State, and encourage- 
invested with administrative powers. While the trade- 
already mentioned trade-union law of 1884 still unionism, 
limited the proprietory and business capacity of trade-unions, 
and completely withheld that of federations, a Bill now 
before the Chamber gives full legal personality both to 
trade-unions and to federations of them, and with it the 
unrestricted right to acquire movable and immovable pro- 
perty, and to carry on business; so that they are in a 
position to initiate business undertakings, and above all to 
tender for public contracts as independent firms. To diminish 
a danger for the free exercise of the right of combination, 
the dismissal of a workman for belonging to a trade-union 
is made ground for damages at civil law ; as conversely 
1 This problem is still unsolved (1903). 



154 MODERN SOCIALISM 

is the boycotting of an employer for employing non-union 
men. 

The French workers have long fought hard against private 
employment-agencies, who mostly abuse their position, extor- 



Miiie and . and otherwise, to the injury of those seek- 

and employ- m g work. The Chamber has voted a law which, 

ment however, still needs the assent of the Senate, who 

agencies. . . . 

are recalcitrant on this very question gradually 

abolishing private employment-agencies for industry. After 
the promulgation of the law no more licences will be granted 
for setting up such agencies. Existing licences may be at 
once called in by the communes, though in this case compen- 
sation must be paid. After five years all private agencies are 
closed without compensation. They are replaced by com- 
munal labour bureaux, which make no charges, and must 
be established by all communes of over 10,000 inhabitants; 
smaller communes have at least to keep a register for entering 
offers and applications. The labour registers of the trade- 
unions and Bourses du Travail are to be on an equal footing 
with the communal establishments. The Bourses du Travail 
are a peculiar French institution, a species of local trade- 
unionist alliances, which receive considerable support from 
public funds ; thus the one in Paris, besides about 3,000,000 
francs for its foundation, receives an annual subsidy of 115,000 
francs, while the 57 existing to-day receive altogether 354,180 
francs in subsidies from communes, and 20,400 francs from 
departments. These Bourses du Travail, to which at least a 
third of the organized workmen in France belong, already 
exert quite a considerable influence on the labour market. 
With the collaboration of the trade-union federations and the 
Bourses du Travail a State labour bureau is at last to be 
formed in Paris to centralize labour intelligence. All public 
labour registers are to notify weekly their situations vacant; 
these are then to be systematically collected in lists, and 
placarded all over the country. 

Over the protection of workers trade-unions have obtained 



G. VON VOLLMAR 155 

an immediate influence, in that Millerand has ministerially 
recommended the inspectors to attend to every information 
laid by a trade-union, and at once investigate the stlmulatl 
alleged improper condition of labour. Through ofinspec- 

this, and through the importance now attached to J? p ?' and 

. their eon- 
mspection, the inspectors get quite a new zeal and nection with 

an authority as against employers which they never trad 
had before. Previously the officials were often 
hindered on entering works ; at night they mostly found them 
closed. When recently something of this sort happened to an 
inspector, he did not go into long explanations, but curtly 
informed the head of the firm that he had freedom of access to 
all places used industrially, at all hours of the day and night, 
and that if necessary he would force an entrance. 

A very important measure is the creation of a regular 
legally recognized, economic representation of the working- 
class on the new Labour Councils. This institu- Millerand's 
tion, introduced by Millerand by way of an official creation of 
decree, corresponds to what the Social Democratic coimeUs" 
group in the German Reichstag has long been (Cotueasdn 
vainly demanding in their well-known Bill for the 
introduction of Chambers of Labour. The labour councils, 
which are composed equally of representatives of employers 
and workers, advise, at the request of those concerned or of 
the Government, on all questions regarding conditions of 
work, and take part in inquiries ordered into them. For 
every district and the branches of industry that they represent, 
they fix the standard of wages and hours, and this fixing at 
once governs contracts of work or supplies for the State, or, 
in certain cases, for other public authorities. They make 
suggestions for the allotment and expenditure of the public 
grants to trade organizations. They investigate the causes of 
prevailing unemployment, and suggest remedies to the 
authorities. They report annually on the state of the pro- 
tection of workers, and the execution of laws, decrees, and 
instructions concerning labour; and suggest improvements. 



156 MODERN SOCIALISM 

Lastly, the sections of the industrial councils, which are 
formed according to trades, and in given cases are reinforced 
by the industrial tribunals of the same trade, have, under 
conditions to be mentioned later, to act as courts of arbitration 
in disputes between workers and employers. A substantial 
deviation from our German project is, that the French labour 
councils are not elected by all workers or employers, but only 
by those who are organized ; all French men and women over 
twenty-five being capable of voting, without distinction of sex. 
This limitation proceeded from the view, that workers or 
employers, who have not yet recognized the need for organiza- 
tion, lack intelligence for the fulfilment of rights and duties 
presumed by the institution of the labour councils. Doubtless 
it forms a strong stimulus to organization. Millerand's 
opponents are really not so far wrong in talking of an " obliga- 
tion to organize;" at least the present institution -paves the 
way to one. Finally, be it expressly noted, that inside the 
State's own concerns, the postal department, railways, etc., 
these labour councils are constituted; while these and all 
public employees are subject, like the rest of the workers, to 
industrial tribunals, and have full freedom of combination and 
trade-union organization all the exact opposite of our 
conditions in Germany. 

An assistant council and advisory body in labour matters 

to the Minister of Industry there is the Supreme Labour 

Council, which dates from 1891. Hitherto it had 

preme quite a minor importance, as its members were 

Labour wholly the Minister's nominees and possessed no 
Council. . , . TT . ,,.,1 , 

sort of authority. Here also Millerand made a 

change. Now the larger part are elected directly by the 
organizations of workers and employers, and a further part, 
taken from the industrial tribunals, indirectly. To these are 
added a number of members of Parliament, officials, econo- 
mists, jurists, the presidents of the Communal Council, the 
Chamber of Commerce, the Bourse du Travail, and the Work- 
men's Co-operative Societies, of Paris, while the Minister only 



G. VON VOLLMAR 157 

retains four representatives, among whom Millerand nominated 
a well-known woman Socialist. A standing committee has for 
its function to disclose evils in social policy, to arrange 
investigations, to report on necessary reforms, and to prepare 
legislation accordingly. 

None of Millerand's measures has attracted so much notice 
as his Bill to regulate industrial disputes, generally called the 
Strike Law for short. In whatever from this Bill Millerand's 
becomes law, it is anyhow interesting enough Biiitoregu- 
to deserve being examined and appraised in industrial 
detail by the workers of Germany and of every disputes, 
country. There is not time for more detail upon it to-day, 
and I must confine myself to characterizing a few points 
in it. The Bill describes its own object as the creation of 
a " permanent organization of labour," the " establishment 
of solidarity among all workers," and the development of 
"industrial democracy;" others have described it as the 
introduction of constitutionalism and the parliamentary 
system into the workshop. The law is to apply to every 
industrial and commercial concern with more than fifty work- 
men or employees, so far as they contract to come HOW far 
under the law. This limitation is a concession, optional, 
which the Government thought it must make to that spirit of 
hostility to all State interference in economic machinery, 
which I have noted, and which is stronger in France than 
elsewhere. It was expected to facilitate the acceptance of the 
proposal by the Chamber. If, however, the law is once made 
by contract to apply to a firm, from its own choice or in 
consequence of the pressure of the workers, then this " contract " 
is binding at law on the work and all engaged on it. How 
anxious the Government is, that the law may be made 
applicable as widely as possible, is shown not only by their 
efforts at promoting the workers' organizations in every way, 
and strengthening their influence, but also in the further fact, 
that they at once put the State itself under the law as regards 
its own works, contracts, and concessions. So though in 



1 58 MODERN SOCIALISM 

form the law is optional, the example of the State and the will 
of the organized workers will force it more and more on the 
employers. 

The Bill is based on workshop-representation. Repre- 
sentative bodies are elected by the universal, direct, and 
New uasi secret suffrage of the workmen and employees in 
Parliaments the firms subject to the law. They are to be in 
of the em- constant touch with the employers, and in the 
any one labour regulations definite times are fixed, at which 
establish- tne WO rkers' representatives are to be received by 
the employers. If a serious dispute breaks out, and 
cannot be settled by oral negotiation, the representatives have 
to formulate the demands of the workers in writing and 
transmit them to the employer, who must reply in writing 
within two days. If he does not accept the demands, the 
two parties to the dispute choose their conciliators, who meet 
and try to settle the affair. If the employer omits to appoint 
his conciliators, or the assembled conciliators do not agree 
within six days, the workers have the right to decide about 
declaring work suspended. The workers or employees meet 
Strike b and vote by secret ballot " yes " or "no." The 
referen- decision of the majority prevails, and the minority 
dum. must su bmit to it. If the strike is thus voted, no 

more work may be done, and the place of work must be closed ; 
in the contrary event work must be continued. The vote 
must be repeated at least once a week. If there appears no 
prospect of the strike being ended by the surrender of one 
side or the other, then at the instance of one of those con- 
The arbitra- cerned, or the authorities, the labour council, the 
tion court, convened representation of the organized workers 
and employers, takes action. The appropriate section of the 
labour council forms the court of arbitration ; its decision is 
valid for six months, and both sides must conform to it. 

This Bill, whatever one's attitude to its proposals in detail, 
means undoubtedly a bold step in social policy. 1 The scientific 

1 The Bill's reception by the French trade-unions was, on the whole, 



G. VON VOLLMAR 159 

spokesman of the French Manchester School, Leroy-Beaulieu, 
has called it " the most colossal revolution that France has 
made since the great Revolution." That, I admit, is exag- 
gerated ; but a Socialistic author has justly insisted, that 
Millerand's work makes for fundamental and revolutionary 
change, and denotes an infraction of the bourgeois idea of 
law by Socialistic thought. In Europe there is nowhere 
anything like it ; on the other hand, a law of the colony of 
New Zealand, of 1894, served Millerand as a model in 
many respects, while, generally, the social legislation of 
Australia is very advanced, and deserves much more con- 
sideration by the working-class than hitherto has been given 
to it. 

Every German reader will at once be led to compare the 
Bill with our vanished "Prison-house" Law. Only, the 
French Government pursues precisely the opposite 
tendency. In the "Prison-house" Law the "free 
labourers," the strike-breakers, were proclaimed German and 
the ideal workmen, the " element of value " for covern- 
the State and society, which should be efficaciously ments to 
protected against the " revolutionaries." In France unionism, 
they proceed from the opposite standpoint, that 
the fights of the workers with capital have not an individual 
but a collective character, and so cannot be decided by the 
will of the single individual ; since the worker who disowns 
or betrays solidarity and does not incorporate himself in an 
organization is the less estimable for that, and it is therefore 
the interest and object of the State in wage-conflicts to make 
the majority decide and the minority obey. While the Bill 
makes striking under some circumstances obligatory, it recog- 
nizes and legalizes the strike as a very exceptional weapon, 
to be used with all prudence, though not to be dispensed with 
under the present system of production. Further, it recognizes 
the workers' right to a voice in the determination of labour 

distinctly hostile. It therefore has not been proceeded with, but remains 
in suspense, as French Bills often do for long periods, 



i6o MODERN SOCIALISM 

conditions. The preamble of the Bill says expressly : u Labour 
is the fellow-worker with Capital. But it is a fellow-worker 
who cannot without injustice and unwisdom be treated as 
under age. If its sudden onsets disturb the best-planned 
business operations, because nothing has been done to initiate 
it into the difficulties of enterprise, it is perverse to reproach 
it with its ignorance of the situation." That signifies the 
affirmation in principle of the practical legal equality of labour 
with capital, of the workers' share in determining the process 
of production. 

Further, the effort towards furthering organization in every 
way and thereby enabling the workers to introduce further 
social improvements and innovations by themselves, comes 
out clearly again in this Bill. I have already pointed out, 
that in all its own relations to the workers the State submits 
to the Strike Law and sets a good example; and also what 
in France is regarded as a matter of course how the workmen 
and employees of the State and other public undertakings 
enjoy to their full extent the advantages of all other labour 
laws, and in particular the right of combination. In the 
preamble to Millerand's Bill the Government expressly indicate 
as their aim : "To develop the natural community of interest 
between the workers, to pave the way for trade organizations, 
and so to found a strong organization of labour." And the 
preamble closes with words which show so much social insight, 
that we in Germany have a difficulty in imagining that they 
proceed from a Government's lips. They run : " The Govern- 
ment of the Republic in proposing the present Bill pursues, 
as in the recent creation of labour councils, a task of social 
education and organization. It proclaims its confidence in 
the organized workers and the educative power of organiza- 
tion. It shows that it finds the security for social progress 
in reason, in loyal negotiations between representatives of the 
mutually opposed interests, in the scientific method, and in 
the realization of gradual advances. These are conditioned 
by economic transformations, whose final end no one can 



G. VON VOLLMAR 161 

flatter himself that he foresees, but for which every far-sighted 
man must open up peaceful and fruitful paths." 

One further observation I should like to make, because it 
best marks the spirit which inspires Millerand in his whole 
activity. I have tried to show you, that the number Guldlng 
of reforms carried by the Socialist Minister is an principle 
imposing one, and that their importance for the JJ* 6 ^ 
workers is extreme. But Millerand himself is far workers 
from exaggerating his achievements, and he knows "^^^ 
well enough that the mafn work must be done better 
by the organized workers themselves. When themselves. 
Millerand appeared last year before a meeting of workers at 
Lille, he closed his speech with the following words : " No 
doubt the measures I have introduced may secure for the 
workers an improvement in their condition. But their moral 
value is much greater. They appeal to the self-help of the 
workers, they give to the organizations of the workers as well 
as of the employers an influence on the fixing of wages, hours, 
and other conditions of work. What I aimed at especially 
was to stimulate the trade-unions to new activity and induce 
workers not yet belonging to them to rally to them in short, 
to strengthen the trade-unions. In this manner we help to 
show the right way to workers willing to free themselves. We 
cry aloud to them, ' Organize ! Singly, you are nothing ; 
organized, you will be such an economic and moral force as 
this country has never known.' " 

What these words express is whatever be the special 
demands of place and time the view of eveiy Socialist. 

Organization is the essence of the workers' move- 

. Identity of 

ment, the bottom condition of the emancipation this prin- 

of labour and of the new social order. Just Jj* 1 ^ 1 ^ 
for that reason, though a Government may think base of 

itself, and be thought by its friends, ever so friendly Social 

6 . * ' . J Democracy, 

to the workers, though in detail it may even 

pass this or that relatively useful measure of social policy, 
yet it will always encounter the greatest distrust and the 

M 



1 62 MODERN SOCIALISM 

keenest opposition from the workers, so long as it ignores 
that truth and hinders the organization of the workers instead 
of furthering it. Such a short-sighted proceeding can only 
aggravate, and embitter, and complicate itself, without being 
able to effect any real change. The irresistible rise of the 
working-class, which characterizes our time, no force can 
impede ; sooner or later it will succeed in acquiring the power 
which is needed to carry out the economic, social, and spiritual 
emancipation of humanity. 



XII 



THE REVOLUTIONARY AND REFORMIST 
CONTROVERSY, AS ILLUSTRATED AT 
THE BORDEAUX CONGRESS OF THE 
FRENCH SOCIALIST PARTY 



This Congress occurred on April 12-14, I 93 afl d w *s solely 
occupied in discussing M. Millerand's Reformist policy. 

Millerand was attacked for dissociating his vote from his party's 
on three occasions : (i) on a resolution to abolish the State-grants for 
public worship, (2) on a resolution to prosecute Socialists who had 
issued a book held subversive of military discipline, (3) on a resolution 
inviting the Foreign Minister to make proposals regarding inter- 
national disarmament. 

The following extracts omit the long controversies over these 
votes, which Millerand defended, but promised not to repeat. The 
text of the main debate was provided by two questions whether 
Millerand should be censured, and whether he should be excluded. 



FROM THE SPEECH OF M. HERVE (ANTI-MILLERAND). 

IN the federation of the Yonne it is not our idea to take sides 
as between the reformist method and the revolutionary. In 
our federation there are partisans of both methods. But the 
majority, like myself, are reformists and revolutionaries at the 
same time. We are reformists in the sense that we do not 
believe, with the old Marxists, that our societies are split 
sharply into proletariate on one side, and great capitalists on 
the other; and it is in this sense that I said at the Tours 
Congress that the class-war does not seern to us as rigid a 



1 64 MODERN SOCIALISM 

dogma as it seemed to Karl Marx. I know that beside the 
proletariate there are small country landowners who substantially 
are much nearer to us than to the capitalist class. And I 
believe, moreover, with the reformists, that we should endeavour, 
by moderation of form and language, to bring over to our 
side all the really democratic groups in the nation. Thus, 
like all the Socialists of the Yonne, we applauded the defenders 
of the Republic at the outset of the Dreyfus affair and at the 
height of the crisis. That is the sense in which we are 
reformers. 

But we are, at the same time, revolutionaries, because we 
are strongly imbued with the idea that the economic situation 
does really create hostile and antagonistic classes in our 
societies. We are revolutionaries, because we know that the 
bourgeoisie possesses such powers, and the masses of capital 
which it holds give it such means of falsifying universal suffrage, 
that we are not at all sure, Citizen Millerand, of attaining our 
desired solution by the reformist method. Our weapon has 
two edges one the spirit of gradual reform, the other that of 
revolution ; you wish, for your part, to blunt one edge of our 
weapon, while we, for our part, wish loyally to join hands with 
the group of the Radical party which resolves to go forward and 
take the turn to the Left. Yet, should that group some day 
turn its back on us, I want us not to emasculate the working- 
class ; I want us, after having been able to join hands, to be 
able on occasion to clench fists. We admit that by legal 
methods radical reforms may be attained ; but we know, too, 
that it is force that for long past has presided at the birth of a 
new society j and probably, alas ! will preside again. 



FROM THE SPEECH OF M. SARRAUTE (PRO-MILLERAND). 

It is an entire policy which you are to judge. This policy 
is the policy of democratic Socialism, which gains ground daily 
on that of revolutionary Socialism I will ask you to let me 
briefly explain why a policy which Citizen Millerand did not 



J. SARRAUTE 165 

start, which he has merely developed and defined, and which 
forces itself upon us more and more in our Republican 
country. 

I say " in our Republican country," and I would not, indeed, 
frame light-hearted generalizations or lay down fixed absolute 
rules independent of time and place. Historical and social 
environment does not square with these doctrinaire fancies, 
and it is quite futile to try inferring rules of action and conduct 
from a general idea or an absolute abstract principle. That 
is, however, what has bee^n done, and is still done to-day, by 
some Socialistic theorists, who, starting from the evident, irre- 
futable, incontestable fact which is the very root and ground 
of Socialism the class-war have, without taking environment 
and institutions into account, given this fact a bearing and an 
effect which cannot be unreservedly admitted. For them, in 
fact, the class-war is not merely the conflict carried on through 
the ages between the Haves and the Have-nots the conflict 
which in our modern societies pits capitalists against pro- 
letarians. For them the notion of the class-war is ampler and 
more comprehensive. It absorbs the whole life of society; 
administrative, political, and judicial institutions are merely 
the swords and sceptres of the possessing class. The State is 
a class-State. 

From this conception, citizens, are derived in practice two 
sets of consequences, all the importance of which you shall 
grasp briefly. Firstly, the State and political institutions, being 
by essence and definition an instrument subserving the possess- 
ing class, cannot be expected to contribute anything to the 
emancipation of the workers; they are not to be won over, 
but to be broken in pieces, and the one issue open to the 
proletariate labouring for emancipation is the revolutionary 
issue. Secondly, as soon as the class-war absorbs the whole 
life of society, and political and social institutions are only 
different manifestations of this war, there cannot logically be 
any interests in common between the capitalist and proletarian 
classes, and the supposed general interests order, economic 



1 66 MODERN SOCIALISM 

prosperity, national independence are only private interests 
in disguise, interests of the possessing class, which the pro- 
letariate, therefore, should not take into account. That is how, 
citizens, the principle of the class-war has been interpreted by 
some Socialistic theorists, whose high moral and intellectual 
worth I hasten to recognize. That is how, in abstraction 
from the conditions of time and environment, there has been 
developed this notion of the class-State, with the two conse- 
quences which I have just emphasized: firstly, revolutionary 
action; and secondly, the denial of the general interests of 
society. 

But, you quite understand, that was theory, abstract 
theory; and as soon as the Socialist party came down from 
the heights of speculation and took part directly in action ; as 
soon as it clashed against the reality which it wished to trans- 
form, its practice at once ceased to be anything but a perpetual 
permanent violation of the rules of action laid down by that 
uncompromising hard-and-fast doctrine. Fact avenged itself. 
These deviations and compromises, for which some of our 
comrades are so bitterly and passionately reproached, do not 
date from to-day or from yesterday. They date from the first 
contact of theory with facts ; they go back to the very origins 
of the Socialist party, to the day when it took shape as a 
political party and would fain exert a serious influence on the 
course of events, the day when by its first most crying contra- 
diction, having laid down as a principle, as an axiom beyond 
discussion, the class character of the State and the impossibility 
of reformist action, it elaborated the articles of a minimum 
programme, a programme of immediate demands, and applied 
to the public power, to the State, for its realization. The 
explanation, citizens, of this deviation from the absolute 
abstract principle of the class-war, of this rapid and decisive 
evolution which leads to legal and reformist action, is not to 
be found in the weakness of individuals, nor in the fascination 
or the corrupting effect of power ; it is to be found entirely 
in the great fact which dominates our modern society 



J. JAURES 167 

Democracy. Democracy is, indeed, the denial of the class- 
State. The class-State only has a meaning so far as the possess- 
ing class is by the very fact of possession the governing class, 
and the monopoly of property is reinforced by the monopoly 
of public power. On the contrary, as soon as the State is 
democratized, and equal rights are admitted for all, whether 
capitalists or proletarians, as soon as the regime of majorities 
replaces class-oligarchy, and the regime of property qualifica- 
tions, it becomes contradictory and meaningless to talk of a 
class-State. Political and social institutions are no longer the 
work and the instrument of the possessing class ; they become 
the work of the majority ; they can be steered and guided in 
the direction of the public interest. 

This speech was followed by one from M. Millerand in which 
he defended his votes, and substantially accepted M. Sarraute's 
principles. (Cp. also infra, pp. 180-184.) After him spoke M. Jaures. 

FROM THE FIRST SPEECH OF M. JAURES. 

Citizens, I should like to reply, as shortly but as clearly as 
possible, at once to Citizen Herve, to Citizen Sarraute, and to 
Citizen Millerand, and particularly to the observations of 
Citizen Sarraute and Citizen Millerand. For my part, I reject 
absolutely the motion of exclusion proposed against Millerand. 
I find it not only brutal, but unjust and impolitic. I add that 
it would be extremely dangerous, if it should have the effect 
of hampering the free, fair, and needful criticism, which I think 
we should oppose to some unfortunate votes and a dangerous 
tactic, formulated here in theory by Sarraute and in practice 
by Millerand. 

Yes, it is true, as Sarraute has said, that some of our 
Socialist comrades, whether inside or outside this hall, 
interpret the class- war in a sense much too simple, one-sided, 
and abstract. It is true that it is not enough to note the 
antagonism between the capitalist and wage-earning classes; 
you must at once add and Sarraute is right in insisting on 



1 68 MODERN SOCIALISM 

it that this antagonism moves and develops inside demo- 
cracy, that it undergoes the conditions of the democratic 
regime, and that the struggle between the two opposed classes, 
between the two groups of antagonistic interests, cannot have 
either the same form, the same character, or the same means 
in a republican democracy and in a despotic or oligarchic 
state. That is true and incontestable. 

But where Citizen Sarraute goes wrong in his turn, where 
he falls into the over-simplification for which he blames his 
opponents, is when he thinks it enough to lay down the 
principle of democracy in order to resolve, in a sort of 
automatic fashion, the antagonisms of society. Yes, we are 
under a democratic regime^ but the enthronement of political 
democracy and universal suffrage by no means suppresses the 
profound antagonism of classes. Citizen Sarraute seems to 
transport himself to the end of political evolution ; he seems to 
think that political democracy has received its supreme formula 
as if political democracy itself could receive its supreme 
form while it is in contradiction with an economic form, not, 
for its part, penetrated by democracy. Sarraute's mistake is 
to consider political democracy in the abstract ; just as Guesde, 
to my thinking, errs in positing the class-war apart from 
democracy, Sarraute errs in positing democracy without noting 
that it is modified, adulterated, thwarted by the antagonism of 
classes and the economic predominance of one class. 

Even universal suffrage and political democracy undergo 
class-influence. Universal suffrage, in all its applications and 
its political movement, undergoes the economic influence of 
contemporary society in two ways. The most visible influence 
of economic oligarchy on political democracy is the pressure 
that employers controlling all the means of work, and there- 
fore of existence, can exert on the workers by threatening 
dismissals and lock-outs ; and daily the worker is injured in 
his portion of political democracy, because he has not his 
portion of social sovereignty. But there is another distorting 
influence of our economic regime upon democracy what I 



J. JAURES 169 

will call the influence of habit. Not only does the proletariate 
too often suffer violence directly from the economic power of 
capitalists, but, if I may say so, its own mind is distorted by 
the habit of the social regime, under which it lives. The 
worst tyranny exerted by a social regime or form is, that in 
absorbing all the strength of the workers and pouring them 
into the mould of contemporary society, it renders a very great 
number of workers whom it overwhelms incapable even of 
conceiving another possible way of applying their strength. 
Thus contemporary society weighs doubly on the workers in 
the exercise of this political sovereignty; which is violated, 
firstly, by the employers, and secondly, by the silent and 
chronic capitalistic prejudice, stamped by habit on the very 
class which suffers from its sway. It is to react against these 
fatal effects this pressure, this distortion exerted by economic 
inequality even on the political action of the wage-workers, 
that we must affirm, always within the democracy, the 
antagonism of classes and the need for the proletarian class 
to organize; and always affirm the collectivist or communist 
ideal in the definite, precise, vigorous form needed to dissipate 
the capitalistic prejudice inoculated into the proletarian class 
itself. 

If Sarraute will allow me to say so, he too and I would 
invite his philosophic attention to it has worked one-sidedly, 
in too simple and abstract a fashion. When I heard him 
speak of political democracy expressing itself above parties 
and classes by the impartial and decisive law of majorities, he 
seemed to me to imagine universal suffrage as a sort of extra- 
ordinary, supra-mundane God, living outside mankind and 
shaping the world No, universal suffrage is carried along 
in the great current of economic action, influenced and 
distorted by it; and just as under the level surface of the 
sea subsist the unevennesses of the sea-floor, its hills and 
its abysses, so the flood of democracy has not yet got rid of 
social inequalities; they mingle with it, and it is for us to 
achieve their destruction, for the proletariate to fill up the 



170 MODERN SOCIALISM 

abysses and realize equality. Consequently the relation of 
the proletariate to the State is falsified by Sarraute in one 
way, just as, I think, it is falsified by Guesde in the other. 

Guesde is wrong in thinking to-day (I knew a time when 
he did not think so) that the State is exclusively a class-State, 
upon which the too feeble hand of the proletariate cannot yet 
inscribe the smallest portion of its will. In a democracy, in a 
Republic where there is universal suffrage, the State is not for 
the proletarians a refractory, hard, absolutely impermeable and 
impenetrable block. Penetration has begun already. In the 
municipalities, in Parliament, in the central Government, there 
has begun the penetration of Socialistic and proletarian in- 
fluence; and, really, it is a strange conception of human 
affairs which can imagine any institution whatever, any 
political or social form whatever, capable of being closed 
to the irradiation, the influence, the penetration of one of 
the great social forces. To say that the State is the same 
the same closed, impenetrable, rigid State, brazenly bourgeois 
under an oligarchic rlghne, which refuses the proletarians 
universal suffrage, and under a regime of universal suffrage, 
which, after all, lets the workers transmit their will even to 
Government by delegates with the same powers and rights as 
the delegates of the bourgeoisie itself, is to contradict all the 
laws of Nature. There is no one force in Nature impenetrable 
to others ; all are moving and crossing, all act on each other ; 
and henceforth the State is penetrated, in part, by the force of 
Socialism and the proletariate. 

If it is in part penetrated by this democratic, popular, 
Socialistic force, and if we can reasonably hope (and I do hope, 
as do Sarraute and Millerand) that by organization, education, 
and propaganda this penetration will become so full, deep, and 
decisive, that in time by accumulated efforts we shall find the 
proletarian and Socialistic State to have replaced the oligarchic 
and bourgeois State, I do not believe, either, that there will 
necessarily be an abrupt leap, the crossing of the abyss; 
perhaps we shall be aware of having entered the zone of the 



J. JAURES I/ 1 

Socialistic State, as navigators are aware of having crossed the 
line of a hemisphere not that they have been able to see as 
they crossed it a cord stretched over the ocean warning them 
of their passage, but that little by little they have been led into 
a new hemisphere by the progress of their ship. Possibly we 
may thus gradually penetrate into the zone of the Socialistic 
State ; but and this is what Sarraute omits in his theory, and 
Millerand forgets 'too far in practice granted that the State 
has been partially penetrated by the proletarian and Socialistic 
force, granted that we carr and ought to hope, in reason, that 
the democratic State can be entirely penetrated, assimilated, 
and transformed by the force of Socialism and the people, it 
remains true to-day in a proportion still vast and overwhelming, 
that the State thanks to the power of the propertied bour- 
geoisie, to the routine and narrow individualism of a vast mass 
of peasants, to the Nationalist diversions and the short-sighted- 
ness of part of the petty bourgeoisie of artisans and shop-keepers, 
to the division of the proletarians weakening and fighting 
against each other, and to the force of tradition is in fact a 
bourgeois State, a State of capitalistic property ; which to-day 
resists us less, and works with us in part ; but which to-morrow, 
by the abrupt coalition of all our opponents or half-hearted 
supporters, may again become against us a State of violence, 
aggression, and systematic resistance : and if we should never 
lose the chance of penetrating as fully as possible this demo- 
cratic bourgeois State, we should never let the proletarians 
forget that it is still but partially won over, that it is still 
largely a hostile force. Against this hostile force subsisting in 
the State we must pit the one force which can neutralize it 
that of the complete Socialistic ideal, grouping and rallying the 
proletarians, to add to their force of penetration. 

What I say of the democracy of the State, I say no less of 
the general interests which Sarraute mentioned. I admit that 
henceforth Socialism must guard its part of the country's general 
interests those of freedom, security, and prosperity; and 
Socialism will not fail to do so. It defends, and has defended, 



1 72 MODERN SOCIALISM 

the political freedom of all classes political freedom con- 
ceived at once as an instrument of emancipation for the 
proletarian class, and a guarantee of dignity for the individuals 
of the nation. Also it defends security : when we ask for the 
transformation of the barrack-army into a popular and national 
militia, it is not to disarm the country ; it is, pending the time 
which we hasten of simultaneous European disarmament, to add 
to the nation's defensive strength, by harmonizing its military 
institutions with the principle of its political ones. And we 
defend the economic prosperity of the country ; when conven- 
tions like the Brussels Sugar Convention intervene to regulate 
international economics, we see to it that France is not tricked ; 
we think it the duty of our diplomacy, without violence or 
colonial exactions, to insist, so far as France's productivity 
entitles her to insist, that a share in distant markets, in China 
or elsewhere, be assured to the pacific penetration of our 
industry, which is a necessary condition for plentiful wages for 
the proletarian class. We do not therefore ignore the general 
prosperity, the general security, and the general freedom of the 
country ; but I add, and the addition is needed, that in watch- 
ing and guiding the course of general interests, we must do so 
from the proletarian standpoint. It is our good fortune that the 
general interest of France and of civilization is tied up with 
the self-interest of a rising class, which is the proletariate. 1 

Look at the health questions. Those diseases which come 
and infect all society whence do they originate ? From the 
squalor of the people, from the filth of the working-class dwell- 
ings. And it is we, who want to compel a new housing regime in 
the great cities and the rural districts, who are not hampered in 
this by private-property prejudices, who put the health and life 

1 Cp. the quotation from Mr. Frederic Harrison, prefixed to Gronlund's 
Co-operative Commonwealth : " The working-class is the only class which 
is not a class. It is the nation. It represents, so to speak, the body as 
a whole, of which the other classes only represent special organs. These 
organs, no doubt, have great and indispensable functions, but for most 
purposes of government the State consists of the vast labouring majority. 
Its welfare depends on what their lives are like." 



J. JAURES 173 

of men above a narrow interpretation of property rights ; it is 
we alone who can here be the guardians of the general health, 
precisely in being the champions of the proletariate in par- 
ticular. What, again, can contribute more to the nation's 
general forces, its productive forces, its power of economic 
expansion, than the health of the race, the health and vigour 
of the workers themselves ? And it is we, and we only, who 
by a vigorous labour legislation can protect these working 
forces, which are not only the proletariate's right, but the whole 
nation's patrimony, and which capitalistic selfishness must not 
be allowed to squander. Again, from the economic stand- 
point the standpoint of prosperity of which Millerand spoke, 
that of wealth of which Sarraute spoke of course we do not 
want to set up Socialism in an impoverished nation ; of course 
we do not want Socialism to be the effect of, or the signal for, 
a sort of economic rarefaction in our country ; of course we 
want activity, initiative, and production to make wealth 
circulate in streams ; but we want the streams to take number- 
less channels, to let their strength and their blessings reach all 
the producers. Well, what is to-day the most decisive means 
of augmenting these productive forces of France and of 
Europe? Obviously it is to rid Europe of the crushing, 
exhausting burden of old-fashioned armaments which not only 
squander seven or eight milliards of francs, but squander the 
strength of men in the season of youth and energy, when the 
activities that are numbed later could yield their maximum 
effort for the wholesale production. Well, and who can realize 
this simultaneous disarmament of Europe ? Who is interested, 
most urgently interested, in the relief of the budget from this 
overwhelming burden? Is it the bourgeoisie? Yes, the 
bourgeoisie has some interest; to obtain the simultaneous 
disarmament of Europe we do not decline to appeal to its 
interest, rightly understood. We do not decline to; and we 
do not wish, by any sort of narrow, uncompromising prejudice, 
to mutilate and sterilize our propaganda. But if the bourgeoisie, 
too, has an interest in disarmament, the proletariate, it must be 



174 MODERN SOCIALISM 

agreed, has twice and thrice as much. It is interested because 
it, too, shares in the general progress of production; it is 
additionally interested, because while the bourgeoisie is already 
provided for in the budget, by bounties, subsidies, and 
millions of State interest, and, failing the national budget, by 
the social budget of dividends and rents secured to it by the 
capitalistic constitution of present society the proletariate can 
only be provided for for the social work it needs, for relief, 
and insurance against unemployment, disablement, and old 
age if there is such a large free surplus in the budget as there 
can only be when the millions squandered on works of inter- 
national destruction are reserved for works of social solidarity. 
Lastly, the proletariate has a still more direct and decisive 
class interest in disarmament ; it is that while armaments go 
on, while the spectre of war between nations remains on the 
horizon, the people and the proletarians themselves have 
necessarily a vital concern diverting to the care of external 
defence a part of the energies which should be spent on 
internal organization. In this way war, while it burdens the 
bourgeoisie like the people, is also a possible diversion against 
the proletariate ; and that is why the latter, besides sharing 
the general interest of nations in the abolition of war, has, 
further, a direct class interest in it. That is why it is to-day 
not the only force, of course, but the deepest, most definite, 
most decisive force for disarmament and peace ; and why we 
should preserve in the affirmation of the proletariate's will and 
policy, even inside democracy, the definiteness that ensures 
its needful vigour. 

Well, I say that in my view Millerand's mistake in the 
votes which he gave, and which have been criticized, was in 
reckoning, like Sarraute, with but one aspect of the problem. 
He saw, quite rightly, that we were a democracy, a Republic ; 
he understood, and had the courage to say, that this enclosure 
of the proletariate by Republican democracy, this possibility 
for the proletariate to move and progress within the democracy 
and through the Republic, entailed special obligations as well 



J. JAURES 175 

as special opportunities on the proletariate and on the Socialist 
party which expresses it in politics ; and to enable the Socialist 
party to assist in the common task of limited reforms, of 
strengthening public liberties, which can be realized in concert 
with the other democratic groups, he consciously or un- 
consciously abraded and blunted overmuch the sharpness 
with which the proletariate should stamp its own force and 
will even on the democracy. That is what I blame in his 
policy; that is its danger. I was glad to hear him say 
yesterday, that if he gave he votes criticized (of which I will 
speak), he did not give them to remain faithful to the attitude 
he had to take as a Minister in virtue of Cabinet solidarity. I 
was glad to hear him say that, because if he had said, or let it 
be understood, that the participation of a Socialist in the 
Government obliged the Minister who had been through a 
coalition to limit afterwards his Socialistic utterances to the 
momentary compact concluded in view of Ministerial action, 
Socialistic participation in the Government would be the 
worst of dangers, for it would kill off by the way all the living 
forces which our party might contain. Such a view is 
impossible, and will be impossible for the proletariate. When 
the proletariate wants, as I think force of circumstances will 
impel it, to make it a normal and regular practice for Socialists 
to take part in the central Government, the Socialist represen- 
tative, while the Ministerial mandate which his party has 
entrusted to him lasts, will be bound by the rules and obliga- 
tions of Ministerial solidarity. The proletariate will recognize in 
this a formal obligation which I will call, if you like, a passing 
professional requirement which makes no inroad on the 
representative programme; so that when the momentary 
Ministerial compact is over, he recovers I will not say his 
undiminished freedom of Socialistic action, for he has never, 
save by a sort of purely formal stipulation, lost that he 
recovers his entire freedom of speech. What would, I repeat, 
be fatal, would be the notion that after this momentary 
compact for Government action there survived a kind of 



176 MODERN SOCIALISM 

posthumous obligation ; for that would mean for ever limiting 
the statement of Socialism to the limits of a business pro- 
gramme necessarily full of the bourgeois spirit. I rejoice that 
Millerand sets forth the problem otherwise. He says : " No, 
but we must take account of the new conditions in which the 
Socialist party must move ; and since it can aspire to govern 
or in any case can henceforth exert a very strong influence on 
Governments, it must set itself to make their work as easy as 
possible, by not presenting to them, as I said just now, that 
part of the Socialistic programme which too violently exceeds 
the bounds of what is immediately realizable." 

Ah, my friend Millerand, I acknowledge that your idea of 
tactics would make things singularly easy. But, let me say, it 
has, conversely, the same fault as Guesde's policy ; it is too 
easy. We are no longer at the stage when politics are easy 
for the Socialist party. Guesde has no difficulties with his : 
" I for my part know nothing in society but the working-class ; 
all that is not working-class I fight, and fight indiscriminately. 
I make no distinction between groups that are retrograde, 
violently retrograde, Caesarist or clerical, and the liberal, 
democratic groups of the bourgeoisie ; I leave out the whole 
revolutionary tradition of France, which at tragic periods has 
forced the democratic bourgeoisie, in order to vanquish the Old 
Regime, to make acting agreements with the revolutionary 
population of the faubourgs, whose consequences extend into 
contemporary history." Guesde ignores all that ; he is shut 
up in an exclusive proletariate, as in a fortress surrounded 
by a deep moat, and fights impartially against every party 
encamped round it ; whether they come as friends or as foes, 
he turns his weapons against all quarters of the horizon alike. 
This is indeed the easy policy ; it is, if I may say so without 
hurting any one, the supremely lazy policy, that which saves 
the trouble of acting, adapting, reflecting, drawing distinctions. 
But the essential function of the human understanding just is, 
to find distinctions inside things which to the ignorant and the 
simple appear uniform. It is a childish policy, the policy of 



J. JAURES 177 

childhood, of powerlessness ; it may have served for a passing 
hour to preserve the scarce-born consciousness of the pro- 
letariate from the troubling of outside influences; but now 
that the proletariate is formed, and is clearly self-conscious, now 
that the Socialistic idea is powerful, and it can and must act, 
to return to this policy of false no-compromise is to go system- 
atically back to childhood j and whereas childhood is lovable 
and healthy when it is natural childhood, it is deplorable and 
deadly when it is the relapse of a mind already developed, but 
blinded by ignorance. Yes, this policy is easy to excess ; you 
need only say, " Class-war/' 

But your policy, Millerand, is too easy also. You need 
only say, " We do not keep, or we keep chiefly for our state- 
ments of Socialistic programmes, anything but what can be 
immediately assimilated by the Governmental action of to-day." 
I admit that, if so, our relations with Governments and with 
other bourgeois groups are simplified remarkably. Only this 
policy has a decisive danger ; it cuts the Socialistic programme 
in two. You saw through the tree at a certain height, and 
only the lower part of the programme remains assimilated to 
reality : the rest is an apex detached from the root ; and the 
part of our programme which we have thus ceased to assert, 
which we have not incorporated by our assertions at least into 
the daily life of the party this part ceasing to receive the sap 
of action and vitality, will no longer be anything but a sort of 
flourish, a dead survival. 

I acknowledge, again, that this complicated policy which 
I am trying to formulate before the party, a policy which 
consists in at once collaborating with all democrats, yet 
vigorously distinguishing one's self from them; penetrating 
partially into the State of to-day, yet dominating the State of 
to-day from the heights of our ideal I acknowledge that this 
policy is complicated, that it is awkward, that it will create 
serious difficulties for us at every turn; but am I to suppose 
that you ever hoped, with your deep practical feeling and high 
intelligence, that we could pass from the period of capitalism 

N 



178 MODERN SOCIALISM 

to the organization of Socialism without coming across these 
difficulties incessantly ? 

The question was eventually referred to a Committee which sat 
late on the isth, and reported to the Congress on the I4th. The 
order of the day originally suggested by the federations desirous of 
excluding Millerand ran thus : 

The Congress, 

Recognizing that Millerand has openly taken the responsibility 
for his attitude and his acts ; 

Without declining to pursue the policy of reforms capable of being 
obtained in accordance with the law of the Republic; 

Asserts that the Socialist party remains a party revolutionary in 
its end the transformation of capitalist society into coflectiuist or 
communist society, and in its means the general strike and recourse 
to the force of the proletariate in case the bourgeoisie cannot be 
expropriated by Parliamentary action ; 

Declares that it only acknowledges the so-called practical policy J 
so far as it entails on Socialism no violation of its programme and 
principles, no abdication of its programme and principles, no abdica- 
tion of its ideal ; 

Decides that by his votes, which illustrate his personal tactics, 
Citizen Millerand has placed himself outside the Socialist party, and 
decides that within the Socialist party there is no room for the tactics 
and the conception of Citizen Millerand. 

During the discussion in the Committee, however, the anti- 
Millerand representatives came to think that greater unanimity would 
be obtained by a briefer declaration, and therefore substituted the 
following : 

The Congress decides that Citizen Millerand is excluded from the 
Socialist party on account of his anti-Socialistic votes, 

This was adopted in Committee by 19 federations, against 16 
voting for an order of the day of M. Jaures, and two abstentions. 
On the following morning it was submitted to the whole congress by 
M. Renaudel ; after whom M. Jaures set forth his counter-proposal 
in the following terms : 

This is the text of the order of the day which in the name 
J Lapolltiquc ditc dts realith % 



J. JAURES 179 

of sixteen federations I will briefly, as far as my strength allows 
me, defend before the Congress : 

The Congress, 

Considering that the action of the Socialist party ought 
to be constantly regulated by the idea of a complete transformation 
of the social order ; 

Considering that the necessary work of daily reform cannot 
be separated from the constant assertion, in theory and practice, 
of the Socialistic ideal defined by tJie national and international 
congresses, particularly by the Congress of Tours ; 

Declares that it is tJie strict duty of Socialist representatives 
to uphold by their votes the tradition of the Socialist party regard" 
ing the separation of the Churches and the State, and to insure 
always the free development of the working-class organized for 
tJie necessary struggle against the capitalist class ; 

Declares, further, that the Socialist party is a party of free 
thought and perpetual scientific inquiry, but that its duty towards 
the proletariate is to exact from all its representatives the disciplined 
observation of the collective decisions of the party in Congress 
assembled ; 

And takes note of the declarations made in this sense by 
Citizen Millerand, 

I say, citizens, that this order of the day answers to every 
legitimate and reasonable anxiety of the Congress and of our 
opponents themselves. What do you want what does the 
Socialist party want ? It wants three things. Firstly, it wants 
to assert that the work of reforms, of daily, Parliamentary 
action in which it is engaged, will in no way curtail the assertion 
of the ideal denned by the Congress. That is one of the essen- 
tial parts of the declaration we submit. Secondly, it wants, 
while recalling the need for representatives to uphold by their 
votes the tradition regarding the separation of the Churches and 
the State, to indicate to French Socialists and Frenchmen 
generally that in certain individual votes Millerand had put 



i8o MODERN SOCIALISM 

upon the party's doctrines a misinterpretation for which it was 
not responsible and which it forbade to be repeated. Thirdly, 
the Congress, the Socialist party, is to point out, that in our 
party there is full freedom of discussion and freedom of thought ; 
that there are principles, but there is no dogma. And in 
asserting this freedom of thought and inquiry, this perpetual 
right of the Socialist mind to follow in its course the moving 
world and to renew its thought as things renew themselves, 
the party means to and must indicate the freedom of conscience, 
of thought, of mind, without which we should be the most 
miserable of churches claiming to set up an infallibility un- 
sanctioned by divine intervention. And we had to indicate 
while asserting this indefinite freedom, that in action (and for 
representatives action takes the form of voting) there must be 
a certain minimum of unity and discipline, which does not 
bind the representative's tactics on this or that point, but which 
harmonizes his external action and his visible vote with the 
collective decisions of the organized party. 

The orders of the day of MM. Renaudel and Jaures were then 
discussed, the one expelling M. Millerand, the other censuring by 
implication his disputed votes, and engaging him not to repeat them. 
During the discussion Millerand made another speech, from which 
portions are here extracted dealing with (i) M. Jaures' view of the 
opposition between ultra-reformers and ultra-revolutionaries, (2) the 
attitude of the party to participation in government. 

I am only at this tribune to affirm my intention, my firm 
desire, to-day as yesterday and as always, to speak not of 
exclusion and infallibility, but of union, conciliation, and 
concord. It is because I desire this conciliation and concord 
intensely, that I ask you to let me briefly reply to that 
interesting and moving portion of Jaures' speech where he 
came to close quarters with the two conceptions which he 
examined before you. 1 If he will let me say so in all friendli- 
ness, he seems to me to have paralleled rather too easily what 
he called the Guesde and the Sarraute conceptions. It is not 

1 Cp, au/f, pp. 164-170, 176-178. 



A. MILLERAND 18 1 

for me to defend the Guesde conception I should be afraid 
of being charged with a want of conviction if I did but 
regarding the Sarraute conception you will let me say that 
really perhaps it has not been considered as a whole ; there 
has been the tendency, involuntary but arising naturally from 
its comparison with Guesde's, to bring out what is possibly 
its weak side. I have been told for they have done me the 
honour, for which I am sincerely grateful to Jaures, of asso- 
ciating me with the clear and striking demonstration of my 
friend Sarraute I have t>een told, " Take care ! you have 
blunted the sharpness (I quote Jaures' phrase) of the Socialist 
proletariate." Do you think so, Jaures ? Our adversaries, 
all the same, seemed to find it sharp enough, judging by their 
outcries. No, we have not blunted the sharpness of the 
proletariate so much ; nor is it perfectly accurate to say that 
my whole policy is limited to retaining that portion of the 
Socialistic conception which can be assimilated at once. I 
think with you that it becomes our duty, I consider our 
imperious duty, to intrude our ideas, bit by bit, into facts, 
laws, and customs ; the more must we, while realizing peace- 
fully and legally this work of necessarily partial and incomplete 
construction, show the proletariate simultaneously the complete 
Socialistic edifice as a whole, and never let it lose sight of the 
end towards which we march. Let me say that the speaker 
who addresses you cannot be charged with having ever for- 
gotten the end for the sake of immediate reforms; and that 
I made a point, even when in office, I would say especially 
when in office, at the very time when I was naturally busy 
realizing what partial reforms I could, of asserting in public 
at Lille, at Lens, at Firminy, whenever I possibly could 
that I was not only a faithful soldier of the Socialist party, 
acknowledging my party's authority, but a Socialist who asserted 
when in office our unimpaired doctrine, our entire ideal. But 
really, when we fulfil this duty, we must meet the needs of 
the day. 

Just now Citizen Pierre Bertrand asked in this place, 



1 82 MODERN SOCIALISM 

" What is meant by the solidarity of classes ? " I did not 
want to interrupt him, or I might have saved myself a speech 
and said, " I will not refer you to my friend Sarraute's very 
remarkable work on Socialism in opposition and in power 
you might be prejudiced against it; I refer you to Jaures 
himself. He showed this morning, in a lofty and precise 
manner, that the Socialist party could take charge on its own 
account of the general interests of the country, and that there 
was none of them in which the proletariate itself was not 
preponderatingly interested." 

You, Jaures, said that we must look at these social interests 
from the proletarian standpoint. But what does that mean 
but to look at them from the standpoint, not of a narrow class, 
but from the highest standpoint that one can take up? To 
say that we look at them from the proletarian standpoint is 
to say that we study them from the standpoint of those who 
are the mass, the many, the crowd, the disinherited, to whom 
we would fain give more light, justice, and well-being. Class- 
solidarity, therefore, is patent to all; it forces itself on their 
attention. It does not suppress class-antagonism ; they are 
two standpoints, different but equally true. Society to-day 
is such as to admit simultaneously both a class-antagonism 
which our aim just is to abolish, by abolishing classes and 
also, citizens, a class-solidarity, thanks to which we not only 
can but must care for the general interests of the country, 
since in working for all we work for the proletarians. 

If that point is reached, do you not see we are at the end 
we are agreed? It is understood for I heard no protest 
anywhere against Jaures' words that the Socialist party, 
serving and defending the interests of the proletariate, in no 
way neglects the general interests of the country, but shares 
in their burden. Is it not, then, clear that it must therefore 
in every way, under every accessible form, serve those general 
interests whose care is not separated in its thought from the 
proletariate's interests ? 



A. MILLERAND 183 

What I here assert afresh is the need for the Socialist party 
to unite clearly on common principles, accepted by all. 

As for these principles, citizens, we have never all through 
this long debate discussed them. One point has been dis- 
cussed for three long years participation in Government ; 
and on it you will allow me these few words. When it 
presented itself, as I told you yesterday, those more particu- 
larly called revolutionary Socialists, seeing themselves con- 
fronted by this natural consequence of their own conduct, 
were frightened. They s%w that it was the condemnation, not 
of their conduct, but of a way of speaking which they declined 
to give up. They withdrew; you remained; and what then 
occurred in the portion of the Parti Socialiste Frangais which 
you form ? A very natural thing. Before, during, and after 
the split at least, in a few months which followed it while 
not condemning participation in the Government, while accept- 
ing it, even, you yet surrounded it with all sorts of restrictions 
and reserves; just because you hoped, and would fain hope 
even against hope, to keep united to you the Socialist comrades 
who threatened to go off, and who in fact did separate; 
secondly, because you feared and what scruples could do 
you more honour? lest the wine of truth should be too 
strong for your adherents' heads if you poured it out to them 
without stint ; lest in wanting to fly at one stretch to the end 
marked out for you, you should leave too many laggards and 
separatists by the wayside. Besides, you were in no hurry 
to settle it ; you had in the Government a comrade who was 
there under his own responsibility; you had put him, as it 
were, on furlough there, and the position was if he erred, 
the party could lawfully disclaim all responsibility, but if he 
did anything good and useful, he would, you knew, be the 
first to refer the honour and profit of it to the party as a 
whole. 

But, citizens, that situation has ended. You have had to 
take sides, and what should have happened has happened: 
participation in the Government I may say after this present 



184 MODERN SOCIALISM 

debate, whose pivot and centre, openly or implicitly, it has 
all the time been is no longer opposed in principle. On 
that I must explain myself. You ask for clearness; you 
cannot complain if I am clear. I say that in all the debate, 
at which we have just been present, participation in the 
Government has apparently aroused no opposition ; and if 
it does arouse it, then we must take sides let me say no less 
flatly and frankly about the principles as well as the direction 
of the party, *>. about the essence of its methods. I think 
we should be fully agreed ; I think we are ; and it is because 
I think we are, because I am convinced that on participation 
in the Government, as on our principles, there is between the 
vast majority of this Congress and myself no opposition in 

what I say no, there can be no split between us ; since, as 

soon as we agree on the guiding ideas, you understand that 
on questions of application, however important, divorce and 
division cannot be. 

I believe that on these questions I was right in acting as I 
did ; I have given you my reasons ; I am confident that the 
future will confirm them, and that the application of the 
principles and tactics which I have indicated will lead you 
rapidly on this fated path. But understand that on these 
questions of application I only ask to go forward as a disciplined 
soldier. I have faith in the future, in the goodness of my 
cause, in your honesty, in the care which you have, as I have, 
for the interests of the Socialist party and of the country itself; 
and to-morrow, hand in hand, we pursue the same task, at 
which for the ten years we have worked together for the 
Republic and the social idea. 

When the two resolutions were put to the Congress, that of M. 
Jaures, censuring but not excluding M. Millerand, was carried by 
109 votes to 89, with 15 abstentions. 



XIII 
THE THEORY OF INCREASING MISERY 

The Verelendungstheorie has been so diversely understood that the 
following 1 passages from the Bernstein debate at the German party's 
Liibeck Congress, 1901, seem worth detaching. Kautsky and Bebel 
are the leading Marxists, Dr. David a leading Revisionist. 

FROM THE SPEECH OF KARL KAUTSKY. 
How, then, do things stand with the Theory of Increasing 
Misery? The theory asserts, that things must always get 
worse before they can get better, that the proletariate sinks 
into ever-increasing misery until it has grown quite irresistible, 
and that only then does the great day of emancipation dawn. 
Comrades, has that theory ever been held by any one in the 
party with any claims to importance ? Certainly not. It has 
long ago been refuted refuted by none other than Karl 
Marx in his " Capital." " Increasing misery " is to be under- 
stood only as a tendency and not as an unconditional truth ; 
it means only that capital, in order to increase its surplus-value, 
must tend to make the position of the workers ever more and 
more miserable. That we know; but Marx himself has 
indicated the counter-tendency. He himself was one of the 
first champions of laws protecting the workers, one of the first 
who drew attention to the importance of trade-unions, at a 
time when other Socialists ignored them, as early as 1847. 
He showed that this tendency is absolutely necessary, but not 
that it leads of absolute necessity to the depression of the 
worker. But we must distinguish ourselves from bourgeois 



1 86 MODERN SOCIALISM 

reformers, in that the latter think the tendency itself can be 
overcome and a social peace be established, a state of things 
in which capital does not tend to depress the workers. Capital 
must so tend; and that is the basis of the class-war, which 
must go on till we wrench from capital the instruments of its 
political and economic power. Till that is done, social peace 
cannot be restored ; and only in that sense have we held fast 
to the Theory of Increasing Misery. 



FROM THE SPEECH OF DR. EDUARD DAVID. 

Again, there is the Theory of Increasing Misery. We talked 
at Hanover about the miserable condition of this Theory of 
Increasing Misery; and now back comes Kautsky with the 
assertion that no one formerly conceived of it in the sense of a 
progressive absolute increase of misery, but that it always was 
only thought a tendency, with which counter-tendencies inter- 
fered. At Hanover I answered Kautsky by simply quoting 
the Communist Manifesto^ where nothing is said of a tendency 
to depression, but where bourgeois society is described as 
not even in a position to feed its slaves the worker turning 
into the pauper. And that is not said of individuals, but of 
the mass of the proletariate ; and the manifesto makes not the 
smallest reference to counteraction by trade-unionist organiza- 
tion. Marx did so later; but in the Communist Manifesto 
he did not lay the smallest stress upon it. He did say some- 
thing quite different; he said, "In the revolution closely 
confronting us the working-class will break its chains, because 
it has nothing to lose." And the Communist Manifesto 
closes with the prospect of revolution, in the sense of violent 
revolution close ahead. So there have been people who have 
taken this standpoint; and if to-day the Communist Mani- 
festo is still set up as a standard, as Kiesel l has set it up, it 
is impossible to say, " What a crazy exposition of the Theory 

1 A delegate who spoke earlier on the same afternoon, 



BEBEL 187 

of Increasing Misery that is ! No rational human being ever 
held that ! " If one alters one's opinion, one should have the 
courage and the strength to say, "We made a mistake." 



FROM THE SPEECH OF BEBEL. 

First of all, I intended not to go into differences of prin- 
ciple between the two schools. I thought that the Hanover 
Congress had settled that. To my surprise, Kautsky has 
deviated from the proper ^course. He has gone into the so- 
called Theory of Increasing Misery, and has thereby given 
David opportunity for a polemic. It is bad to let things of 
that sort go uncontradicted ; so I will say a few words. The 
Communist Manifesto has been appealed to. I affirm that 
already in 1872, Engels, in concert with Karl Marx, declared 
that they wished to re-publish it only as a historical document. 
Whoever has studied the works of Marx and Engels in detail 
can have no doubt that they never set up the Theory of In- 
creasing Misery in the sense explained by David. If anything 
is characteristic, and refutes large passages in Bernstein's 
" Presuppositions of Socialism," it is the passage from 
" Capital," prefixed as a motto to Bernstein's book, in which 
Karl Marx describes the Ten Hours' Bill as the victory of a 
principle. Marx took the view that by organization the work- 
ing-class can counteract the depressing tendencies of capital, 
and if by the strength of their organization they succeeded in 
inciting the State to take such steps, then it was not merely a 
great moral advance, but the victory of a new principle. Even 
a man like Lassalle, who took so decidedly the standpoint of 
the Brazen Law of Wages, even he gives no occasion for his 
being invoked as a witness on behalf of a false conception of 
the Theory of Increasing Misery. In his " Open Letter in 
Reply " he says : " People tell you workers you are to-day in 
quite a different position from that of three or four hundred 
years ago. No doubt you are better off than the Botokudians 
or than cannibal savages." "Every human satisfaction," he 



1 88 MODERN SOCIALISM 

says further on, " depends always on the relation of the means 
of satisfaction to what the custom of the period demands 
already as bare necessaries for existence, or, which is the same 
thing, upon the excess of the means of satisfaction over the 
lowest limit of what the custom of the period demands as bare 
necessaries for existence." " If you then compare," he suggests 
further, " what the rich class has to-day with what the working- 
class has to-day, then the gap between the working-class and 
the rich class to-day is greater than ever before." That is the 
pith of the Theory of Increasing Misery a thing so simple 
and obvious that David, who is an important man in our 
party, and well acquainted with its history, should have been 
unprejudiced enough to recognize these conceptions of our 
great theorists. 



XIV 

GERMAN SOCIALISTS AND THE GENERAL 
STRIKE 

Here are given (i) the celebrated Jena resolution passed by the 
German Social Democratic party in 1905, (2) extracts from a speech 
of August Bebel at the party's Mannheim Congress in 1906, (3) the 
resolution passed by the Mannheim Congress. For August Bebel, 
see p. i ; and for the subject see Introduction to the second edition, 
pp. xiii-xv. 

I. THE JENA RESOLUTION 

IN view of the efforts made by the ruling classes and authori- 
ties to withhold from the working-class a legitimate influence 
upon the public ordering of affairs in the commonwealth, or, so 
far as the workers have attained any such influence through 
their representatives in Parliaments, to take this from them, and 
so render the working-class politically and economically without 
rights or power, the Congress thinks it right to declare that 
it is the bounden duty of the entire working-class to assist with 
every means at their disposal every attack on their rights as 
men and citizens, and continually to demand complete equali- 
zation of rights. 

In particular, experience has shown that the governing 
parties, even those far to the bourgeois Left, 1 are hostile to the 
universal, equal, direct, and secret suffrage; that they merely 
tolerate it, but at once try to abolish or impair it, as soon as they 
think that it imperils their supremacy. Hence their opposition 

1 i.e. Liberals. 
189 



1 9 o MODERN SOCIALISM 

to an extension of universal, equal, direct, and secret suffrage 
to the separate States (Prussia, etc.) ; and hence, too, they 
even make worse existing and backward electoral laws, from 
regret at the working-classes exercising any influence in the 
Parliaments, however slight. 

In this way, a bourgeoisie, greedy of power and unlimitedly 
timid, and a narrow-minded lower middle-class, have taken 
away the people's votes in Saxony and in the so-called Republics 
of Hamburg and Liibeck, and have made worse the communal 
elections in various German States (Saxony, Saxe-Meiningen, 
etc.) and places (Kiel, Dresden, Chemnitz, etc.) ; acting through 
the representatives of various bourgeois parties. 

But considering that universal, equal, direct, and secret 
suffrage is the starting-point for a normal political development 
of the commonwealth, as is complete freedom of combination 
for the economic uplifting of the working-class ; considering, 
further, that the working-class by its ever-increasing numbers, 
its intelligence, and its labour for the economic and social life 
of the whole nation, as well as by the material and physical 
sacrifices which it has to support for the military defence of the 
country, is the most important element in modern society; 
this class must demand not only the maintenance but the ex- 
tension of universal, equal, direct, and secret suffrage for all 
representative bodies, in the sense of the Social Democratic 
programme, and the securing of full freedom of combination. 

Accordingly, the Congress declares that in case of an 
attack on universal, equal, direct, and secret suffrage, or on 
the right of combination, it is the duty of the entire working- 
class to employ vigorously every weapon of defence that seems 
appropriate. 

As one of the most effective weapons to repel such a 
political crime against the working-class, or to capture an 
important right as a basis for its emancipation, the Congress 
recommends, in the case given 

" the most comprehensive application of the general refusal to 
work." 



BEBEL 191 

But in order to render the use of this weapon possible, and as 
effective as possible, the greatest expansion of the political and 
trade-union organization of the working-class, and the incessant 
education and enlightenment of the masses, by the labour 
journals and by agitation and literature, is indispensably 
necessary. 

This agitation must set forth the importance of, and neces- 
sity for, the political rights of the working-class, especially 
for universal, equal, direct, and secret suffrage and for com- 
plete freedom of combination; with references to the class- 
character of the State and society, and the daily misuse of 
political power by the governing classes and authorities against 
the working-class, in virtue of their monopoly of it. 

Every member of the party is bound to join a trade-union, 
if one exists or can be founded in his trade or calling, and he 
is bound to support the aims and objects of the trade-unions. 
But it is also the duty of every class-conscious member of a 
trade-union to adhere to the political organization of his class, 
the Social Democratic party, and to promote the circulation 
of Social Democratic literature. 

II. FROM A SPEECH OF AUGUST BEBEL AT THE 
MANNHEIM CONGRESS. 

Although at Jena I enthusiastically recommended the 
general strike as a weapon in the last resort, no word of 

mine can be taken to mean that I recommended _ 

General 
one for the coming year. Just because we in strike 

Germany, through the whole shaping of our poli- f[iess * 
tical conditions, are concerned with perfectly weapon, 
definite rights, on behalf of which in a given ^^ d be 
event we should institute the general strike, and through 

because we must wish in all our interests to hold * tr ! e ?? 

, . , discipline, 

such a demonstration completely in hand, we 

desire a still more thorough agitation and education, in order 
that at the given moment our disciplined masses, which must 
Sweep the undisciplined away, may be so held in hand that no 



192 MODERN SOCIALISM 

blunders occur. I tell you in the name of the party Council 
and the Committee of Control, which we have consulted on 
the subject, our position is, that on the one hand the general 
strike may be necessary, but on the other hand we will not let 
ourselves be hounded into it against our convictions by any- 
body, no matter whom. I regard the general strike as the 
ultima ratiOy the final, and, remember, the bloodless instrument 
of our party, the weapon which we need all our strength and 
discipline and self-restraint so to employ, as we think the 
interests of the party and the people demand. That is a 
hazard, which as yet, with our present organization, we cannot 
entertain. I think it false to be optimistic at this point. In 
every direction our activity needs to be developed. The 
stimulus given at Jena has already in the short space of a 
year yielded splendid successes. But agitation and organiza- 
tion must develop much further yet ; and if they do, we will 
see what we can do more. 

The question now arises : What is the attitude of our trade- 
unions to the general strike? You all know, that in our 
Trade- debates last year at Jena reference was often made 
thege S nepai to the Col g ne resolution, and the opinion was 
strike. expressed, that it contradicted the Jena resolution. 
I will not say more on this question here, but I might make 
one point clear, and indeed am glad to, namely, that in spite 
of the unpleasant references made to the party by individual 
speakers at the conference of the trade-union committees, the 
proceedings as a whole showed, that notwithstanding every- 
thing, we had drawn considerably closer together than pre- 
viously at Jena appeared to be the case. On that point no 
doubt can exist. I was especially satisfied to read in the 
speech of comrade Bomelburg at that conference his assertion, 
that if once an issue were raised, which put in question the 
right of combination, a right indispensable for the workers 
and peculiarly so for the trade-unions, then the trade-unions 
must not wait for the party to give the lead, but themselves 
must come forward and set to work with the general strike. J 



BEBEL 193 

am glad we agree on that. I noticed, too, another remark in 
the report of that conference. An outspoken adversary of the 
general strike told the meeting that he had himself noticed 
" people beginning by degrees to accustom themselves to the 
thought of the general strike." That shows that the discussions 
at Cologne and Jena, and subsequently in the press, have led 
a great many comrades to reflect more deeply, and the result 
of their reflections differs a good deal from their former line of 
thought. To me it appears beyond question, that we must win 
over the trade-unions to the-idea of the general strike. I think 
so just because without the co-operation of the trade-unions 
the general strike is impracticable. On the other hand I admit 
that in trade-union circles, in consequence of a series of state- 
ments in articles and speeches, and notably in the transactions 
of the trade-union Congress this spring, the thought has been 
expressed, that people in the Social Democratic party were 
inclined to play fast and loose with the general strike. This 
view, too, is that, for example, of the Nieder-Barnim resolu- 
tion, which does the most extraordinary thing that can be 
done in this connection. Comrades, does not the Nieder- 
Earnim electoral district, which has adopted this resolution by 
a majority, does it not know, what the Congress of the party 
for Prussia decided about street demonstrations ? Does it not 
know, that if (as the wording of the resolution says) we insti- 
tuted street demonstrations, the result would be a massacre, 
and yet we should have no certainty of emerging from the 
massacre victorious ? The talk is not merely of demonstra- 
tions, but in most cases also of general strikes. According to 
that, they are represented as a means of agitation applicable at 
any moment. To-day we start one general strike, to-morrow 
another, and the day after to-morrow a third. Conceptions of 
this kind we must reject with decision. I can only ask the 
Congress to reject every resolution introduced under this head, 
and adopt the resolution which we propose to you. I would 
point out that the greater part of these resolutions has been 
already dealt with now. 

o 



I 9 4 MODERN SOCIALISM 

All I want to do further is briefly to oppose a resolution 
adopted by our comrades at Miihlhausen. The resolution 
Suggested r efers to a danger arising, that in the great struggle 
strike to for Russian freedom the Prussian Government 
Gerrnan in- niight want to march Prussian troops into Russia, 
terferenee i n order to smother the revolution by the aid 
in Russia. of German blood. Comrade Maurenbrecher ex- 
pressed the same thought in an article. Abroad, too, it was 
widely mooted. From most diverse groups of Russian Socialists 
came questions asking me, whether it was true that Germany 
would intervene, and how the German Social Democrats would 
behave in that event. I have replied : German intervention 
is unthinkable. One must admit that, however low one's 
opinion of the conduct of our foreign affairs. The Imperial 
Chancellor himself took the first opportunity of declaring in 
the Reichstag, that these rumours were untrue, that in Prussian 
Germany no one thought of espousing the cause of the Russian 
Government. Doubtless the hearts of the German Emperor, 
the Government, and the bourgeoisie, are on the Tsar's side. 
It is natural that in all these circles people should desire 
the successful repression of the Russian revolution ; but it is 
a long step from that to the actual marching of German troops 
into Russia. The events of 1792 have been cited as an 
example. But the French Revolution in 1792 had the whole 
of Europe for its enemy. At that time a coalition of Europe 
could be formed ; at that time it was possible to hope to 
smother the revolution in blood. Yet even so the attempt 
miscarried. 

The situations of 1792 and 1906, are entirely different. 
To-day there is no European coalition ready to mobilize 
against Russia, and Germany, thanks to her clumsy foreign 
policy, is isolated. The Austrian press, of all parties, protested 
most promptly and energetically against the idea of any such 
interference. For Germany to interfere in Russia would mean 
a European war. And care will be taken in Germany not to 
invite such a gigantic peril. What else does the proposal of 



BEBEL 195 

the Miihlhausen comrades mean, but what Nieuwenhuis advo- 
cated at the Zurich Congress, the general strike on behalf of 
peace in the event of an outbreak of war ? Very Genepal 
few of you, comrades, have experienced a great war. strike to 
You have no notion of the situation which arose on Jpeak of " 
the outbreak of war in 1870. Of course we have war not 
grown much stronger since then, but the forces at practi al9 ' 
the disposal of the anti-Socialists have grown too. Above all, 
the military armament has completely changed. Who then 
believes, that at a moment, when a violent shock, a fever, is 
stirring up the masses from their very deepest depths, when the 
perils of a gigantic war and its appalling misery confront us 
who believes, that at such a moment it is possible to institute 
a general strike ? The idea is puerile. From the first day of 
the outbreak of such a war there march under arms in Germany 
five million men, with many hundreds of thousands of Socialists 
included among them. The entire nation is in the ranks. 
Frightful want, universal unemployment, starvation, stoppage 
of factories, fall of paper securities, is it credible that at such 
a moment, when each is thinking only of himself, one could 
institute a general strike? If any leaders of the party were 
so senseless as to institute a general strike on such a day, 
martial law would at once be extended, along with the 
mobilization, over the whole of Germany, and decisions then 
pass from the hands of the civil courts into those of courts- 
martial. I have often heard it said, and I think it probable, 
because in governing circles it is supposed, that the Socialists 
could be crazy enough to take such a course, I have often 
heard it said, that exalted persons have long nursed the idea 
of preparing the same fate for all the Socialist leaders as was 
meted out in 1870 to the members of our party committee. 
If you think that in such a case our adversaries will exercise 
any clemency, you are mistaken ; I think it inconceivable that 
in such a case any should be expected. Things are different 
with us from things in other countries. Germany is a State 
which no other State resembles. That may be taken as a 



196 MODERN SOCIALISM 

compliment, but it is the truth ; and this truth we must keep 
in sight, and direct our affairs accordingly. I can only 
emphatically ask you to reject the Miihlhausen resolution. 
Adopt the resolution that we propose, for it offers you the 
way along which the party may victoriously pursue its end. 



III. THE MANNHEIM RESOLUTION (moved by Bebel). 

1. The Congress confirms the resolution of the Jena 
Congress upon the political general strike, and after declaring 
that the resolution of the trade-union congress at Cologne 1 
does not contradict the Jena resolution, regards all disputes 
over the meaning of the Cologne resolution as settled. 

The Congress again recommends specially urgent atten- 
tion to the clauses calling for the strengthening and extension 
of the party organization, the circulation of the party literature, 
and the adherence of members of the party to trade-unions 
and of trade-unionists to the party organization. 

As soon as the Party Council deems a political general 
strike to be necessary, it must put itself in communication 
with the General Committee of the trade-unions, and take all 
requisite measures to carry out its course successfully. 

2. The trade-unions are indispensably necessary to uplift 
the class-position of the workers inside bourgeois society; 
they are not less necessary than the Social Democratic party, 
which has to conduct in the political sphere the struggle to 
uplift the working-class and to make its rights equal to those 
of the other classes in society, but which further, and beyond 

1 The Cologne resolution included the following expressions : 
"The Congress therefore considers, that all attempts to set up a definite 
line of tactics by preaching the political general strike should be repudiated ; 
it recommends the organized workers to resist such attempts energetically. 

"The Congress regards the general strike, as it is represented by 
Anarchists and people without any experience in the sphere of economic 
struggle, as beneath consideration ; it warns the workers not to let the 
acceptance and circulation of such ideas distract them from the detailed 
daily work of strengthening their trade organizations." 



BEBEL 197 

these immediate objects, strives for the emancipation of the 
working-class from every oppression and exploitation, by 
abolishing the wage-system and organizing a system of pro- 
duction and exchange resting on the social equality of all, 
organizing, that is, the Socialist society : an aim for which 
the class-conscious workers of the trade-unions must also 
necessarily strive. The two organizations are thus led to 
mutual agreement and co-operation in their struggles. 

To bring about harmonious procedure in affairs which 
concern the interests of the trade-unions and the party equally, 
the central executives of the two organizations must endeavour 
to come to an understanding. 

But in order to secure that harmony of thought and action 
between the party and the trade-unions, which is indispensably 
requisite for the victorious progress of the proletarian class- 
struggle, it is absolutely necessary, that the trade-union move- 
ment should be dominated by the spirit of the Social Democracy. 
Therefore it is the duty of every member of the party to exert 
himself in that sense. 



XV 

SOCIALISM AND THE CAPITALISTIC 
TRANSFORMATION OF AGRICULTURE 

BY E. VANDERVELDE 

An address delivered to an audience of Belgian agricultural 
experts in July, 1899. 

Emile Vandervelde (born 1868) is the leader of the Belgian Labour 
party in the Belgian Chamber. He is also among the most learned 
of living Socialists. His most recent publications upon Agriculture 
include L'Exode Rural et le Retour aux Champs (Paris, 1903), Essais 
sur la Question Agraire en Belgique (Paris, 1903), La Propriete Fonciere 
en Belgique (Paris, 1900), and five studies in the Annales de I'lnstitut 
des Science Sociales (Brussels, 1898 and 1899). 

From the following lecture a short introduction is omitted, in 
which M. Vandervelde refers the institution of property to social 
utility, and premisses that he will examine private property in land 
from this standpoint. His account of the decay of peasant pro- 
prietorship is the more interesting because drawn from the very 
country which to J. S. Mill (Political Economy, b. ii., c. 6, 5) was 
" the most decisive example in opposition to the English prejudice 
against cultivation by peasant proprietors. " 

AT the outset I must point out an underlying essential 
distinction, which is at the very foundation of the collectivist 
theories. I want to distinguish between peasant property 
exploited immediately by the owner himself, and capitalistic 
property leased out for exploitation because its owner is not 
a cultivator. Clearly these are two different economic 
categories, which cannot be confounded under one head 
without causing a real confusion. Clearly peasant property, 

198 



E. VANDERVELDE 199 

which is an instrument of labour for the cultivator, cannot 
be assimilated to capitalistic property, which is a means of 
exploiting this cultivator for the profit of a landed proprietor. 
I must therefore place myself in turn at the point of view of 
peasant property and at that of capitalistic property to examine 
the question whether private property in land is in the interest 
of society at large. So far as concerns peasant property, we 
have to ask ourselves first of all, whether in our country there 
still exist many cultivators who own the land which they 
cultivate. 

The most recent statistics bearing on this point are to be 
found in the third volume of the agricultural census of 1895. 
From them we learn, that there were then ownership 
231,319 cases of ownership by the cultivator (the by the 
owner cultivating all or more than half his land cultlvator< 
in each case). Are we to infer that there are over 200,000 
cultivators owning the soil that they till ? Statistically that is 
so, but practically it is quite clear that those who cultivate a 
"table-cloth," a "pocket-handkerchief" of ground of a few 
ares x an estate of 2 hectares, for instance cannot as a rule 
be regarded as peasant proprietors living in an independent way 
on the products of the soil which they cultivate, and finding in 
it a livelihood for themselves and their families. Except in 
districts of intensive market-gardening, and in certain parts 
of Flanders, they are really labourers, agricultural or industrial 
proletarians, who only find in their tiny estate something to eke 
oiit their wages, a more or less trifling resource to be added to 
their daily earnings. As to those who really possess an 
independent peasant estate, capable of furnishing the cultivator 
and his family with a livelihood, we shall be more than 
generous if we reckon as such all those in the whole country 
who exploit as cultivating owners more than 2 hectares. The 
last agricultural census gives their number as 66,452. From 
this figure must be deducted a certain number of large estates, 
some hundreds of farms of over 50 hectares (123-557 acres), 
1 I are = 119-603 square yards ; 2 hectares = 4*942 acres. 



200 MODERN SOCIALISM 

which are cultivated by active owners with the assistance of 
agricultural labourers. So there remain between 50,000 and 
60,000 peasant estates cultivated by peasant proprietors, 
who can, whether the season be good or bad, derive a more or 
less sufficient livelihood from them. 

You notice that in our population of over six millions the 
peasant proprietor forms an extremely limited social category, 
limited in respect of numbers, still more limited in respect of 
the area exploited. In fact, as the statistics of 1895 go on to 
inform us, out of every 100 hectares of land, about half (49*4 
per cent.) are cultivated by their owners, and the other half 
(50*6 per cent.) are rented; but it must be borne in mind 
that the official figures include as cultivated by their owners 
the woods, the waste lands, and the heaths, whether belonging 
to private persons or to public bodies, so that there are villages 
which seem to be the promised land of cultivating ownership 
when really they belong to landlords whose property is wood 
or waste. If we only take account of ordinary forms of 
cultivation, which alone interest us at the moment, the propor- 
tion owned by its cultivators out of every hundred hectares of 
land exploited in Belgium is 31-6, against 68*4 which are 
rented. And we should observe (for the observation has a 
fundamental importance) that most of the land cultivated by 
peasant proprietors is situated in the poorest and least- 
endowed parts of the country. In Flanders or Hesbaye 
ownership by the cultivator is exceptional in the Ostend 
district, for instance, it has wholly disappeared ; on the other 
hand, it still plays a great part in Campine, in the Ardennes 
and also in the south of Hainaut, in the districts of Chimay, 
Beaumont, etc. that is, in parts where peasant properties 
are found in combination with common properties and often 
also with accessory industries. A striking instance of such a 
state of social affairs is that of the parishes situated along the 
French frontier, in the Philippeville constituency, Olloy, 
Oignies, Nismes, Petigny, Cerfontaine, etc. There are there 
a fairly large number of small peasant proprietors ; the parish 



E. VANDERVELDE aoi 

has extensive common lands, which enable them to pasture 
their cattle, and to obtain firewood, or litter for their beasts. 
Besides this, the majority of these peasant proprietors spend 
their days also on industrial work. That is the case, for 
instance, with the slate- tilers of Oignies, the sabot-makers of 
Nismes or of Cerfontaine; and under these conditions these 
properties may be said to present considerable advantages for 
the populations who benefit by them. 

These conditions, essential not only to their prosperity, but 
to their existence, may be summarized as follows : 

(1) Property extensive enough to supply the cultivator's 
family with a livelihood. Conditions 

(2) Accessory industry supplying them with l^^ nee 
supplementary means of subsistence. of peasant 

(3) Rights over common lands sufficiently P ropepty - 
considerable for the peasants to procure what they require, in 
order to carry on the petty cultivation. 

Under these conditions it comes about that a poor 
population, living in a poorly endowed district, finds itself 
really better off, socially speaking, than a population living in 
the most fertile and richest districts in the country. One 
cannot doubt, for instance, that the small farmer of the Waes 
country, with its pretty white flower-hung houses and such well- 
cultivated fields, but with such heavy rents to pay, has less 
favourable conditions of life and is less substantially fed than 
the peasant poor, no doubt, but freer and more independent 
of the Upper Ardennes or of Condroz. The first scarcely 
eats anything but churned milk and black bread; the latter 
is always sure to have at least some bacon with his potatoes. 
But in proportion as agricultural progresses, as agricultural 
technique is perfected, as the capitalist regime takes hold 
of industry and agriculture, we see the conditions for the 
existence and prosperity of peasant property disappear one 
after the other. It is idle, to prove it, to look for instances 
in other countries ; it is enough to see what has happened 
in our own. We shall note, in fact, that for a century the 



202 MODERN SOCIALISM 

development of industry has resulted in the upsetting, one 
after the other, of what I shall call the props of peasant 
property. 

First fell the rights over common lands. As soon as ever 
industry on the large scale begins to develop, and the industrial 
Bights over proletariate grows, and the food-requirements of the 
commons, population increase and as long as the competition 
of foreign corn-stuffs does not make itself felt agriculturists 
regard the working of waste lands as an advantageous operation, 
and hurry by every means to divide up and alienate common 
lands. That is what happened in Belgium during the first 
half of this century. You know that to promote this transfor- 
mation the Chamber voted the law of March 25, 1848, on 
compulsory alienation of common lands. In the course of 
twenty years the best part of the collective estate of the 
parishes was alienated. What remains of it to-day scarcely 
retains any importance except in Campine and the Ardennes 
region. 

On another side, at about the same period, other factors 
intervened, and rendered the position of peasant property more 
Home and more difficult. There were in Flanders small 

industries, cultivators or small owners, whose use of the soil 
was insufficient by itself to supply them with a livelihood, but 
who found a supplementary resource in home industries carried 
on by themselves, their wives, and their children. The women 
and girls spun linen, the man wove it ; and in, so to say, every 
house on the Flemish countrysides was a textile business. 
But from 1847 onwards the potato disease and the introduction 
of machines reduced to starvation the greater part of these 
peasants who were literally expropriated by the conquering 
competition of urban industry. From that date the Flemish 
labourers especially those of the districts of Alost, Termonde, 
Audenaerde, etc. as with the labourers of the district of Ath, 
are to be seen on annual emigrations, going off into the Grand 
Duchy, or into Northern or Central France, for harvesting and 
beetroot-gathering. 



E. VANDERVELDE 203 

Lastly there comes in a third factor, tending to make the 
position of peasant property harder still. Formerly it produced, 
before all else, things of value for use, products p PO( j uctlon 
consumed on the spot by the peasant himself; but for ex- 
now it has to produce things of value for exchange, change< 
products which find a sale on the market, to have the means of 
paying the ever-increasing taxes, the ever-growing burden of 
fiscal charges. 

Destruction of rights over common lands, decay of home 
industries, production of things valuable for exchange instead 
of things valuable for use, and on top of these the action of 
the law on inheritance, the influence of compulsory equal 
partition such are the principal reasons for the diminution 
of cultivating owners and the critical position of peasant 
property. 

But, some one will perhaps say, if you consult the official 
figures, you find, in contradiction to what we have been saying, 
that ownership on a small scale tends to spread, and that the 
number of owners increases from year to year. 

This is, in fact, what a superficial glance at the figures 
seems to show. The documents supplied by the Finance 
Department inform us, that in 1846 there were Muitipiica- 
914,937 holdings of land in Belgium. In 1896 lion of 
there were 1,187,000; and so it is often inferred Holdin ^ s - 
that the number of owners has passed from 914,937 to 
1,187,000. But it is important to notice some facts which 
reduce this inference to its real value 

(1) The population has increased faster than the number of 
holdings of land. In 1830 there were 22 holdings to every 
hundred inhabitants; in 1896 there are only 18. 

(2) As every one is aware, many properties are only such 
in name ; properties on which, as the Flemings put it, there 
is " a little man on the roof," i.e. a burdening mortgage. 

(3) You know, too, that the number of holdings of land 
does not match the number of properties; that many pro- 
prietors possess not one holding but very many, scattered in 



204 MODERN SOCIALISM 

different parishes. In Flanders there are some landowners 
with 40, 50, and even 60 holdings scattered in as many 
parishes. 

(4) There are in existence a very great number of holdings 
of land so small that they only represent a phantom of 
property. Not long ago I was studying the land-register of 
a little parish, Rixensart, situated beside the one in which I 
live, and I found there proprietors like these : one with 40 
centiares, income fivepence ; another, with income twopence- 
halfpenny ; two others, designated suggestively, X. " blind" 2 
hectares, Z. " beggar" 85 ares. It will be readily recognized 
that it is hard to consider proprietors of this sort as independent 
peasant proprietors capable of drawing from the soil which 
belongs to them a livelihood for themselves and their families. 
But after making this series of preliminary observations, we 
must examine more closely the statistics concerning holdings 
of land. 

I have noted that the number of these holdings had 
increased since the date when the land-register was com- 
An invest!- piled; but the important point is, whether there 
fiJ^Snd- nas rea Uy been an equalizing partition of property, 
registers, whether the laws of the Revolution, which aim at 
dividing up the soil among a constantly increasing number of 
proprietors, have produced that result. And to settle this 
question, which is of paramount importance, I have under- 
taken, with the collaboration of several friends, an inquiry, 
which has cost us long months of work, on the division of 
landed property in Belgium. This inquiry was of the following 
nature. 1 Possessing, thanks to the official statistics, the total 
number of holdings of land, we picked out in the 15,000 or 
20,000 land-registers deposited in the provincial registries 
the holdings of over 100 hectares, which may be considered 
in Belgium as large landed estates. We have the figure of 

1 Monographs for each of the nine provinces, entitled " L'Influence des 
villes dans les Campagnes," in the Annales de Plnstitut des Sciences Sociales 
(n, Rue Ravenstein, Brussels). 



E. VANDERVELDE 



205 



every province but one, that of Namur, in which, notoriously, 
large estates are more general than anywhere else; for the 
eight other provinces the following are the results given by a 
comparison of the land-register in 1834 (when it was first 
compiled) and in 1898 : 





Holdings of over i 


x> hectares of land. 


Provinces. 


Total (in hectares) 
for 1834-1845. 
j 


Total (in hectares) 
for 1898. 


Brabant 
Antwerp . 
Limbourg . 
Luxembourg 
Hainaut 
East Flanders 
West Flanders 
Liege . 


38,963 
34,184 
15,298 
55,9" 
55,258 
14,414 
23,048 
48,763 


41,545 
39,485 
12,522 
66,313 
39,186 
18,927 
23,847 

55,8n 


Eight provinces l . 


285,839 


297,636 



So in the last sixty years, taking the country as a whole 
property on the large scale, far from being subdivided, has 
rather gained ground. Partition has occurred in some pro- 
vinces, e.g. Hainaut and Limbourg, but concentration on the 
other hand, in provinces such as Antwerp, Lie'ge, Luxembourg, 
Brabant, and the provinces of Flanders ; reckoning altogether, 
there is an increase of 8000 hectares for the eight provinces. 

On the other hand, property on the small scale has gained 
ground since the number of holdings of land has increased ; 
the partition has fallen, therefore, upon property on the 
moderate scale, on the intermediate class in society, on the 
family properties of which I was speaking just now. Evolution 
has tended in two directions on the one side, the concentra- 
tion of large properties; on the other, the breaking up of 

1 The figures for Namur have since been obtained : 106,672 hectares in 
1834 ; 100,276 hectares in 1898. 



206 MODERN SOCIALISM 

middle-sized ones and the creation of dwarf properties which 
become too small to feed a family. What is the social effect 
of this ? It is that peasant property becomes more and more 
incapable of feeding a family, and that those who still possess 
land worked by themselves as cultivating owners are obliged 
to seek other means of subsistence. Some take a small shop 
oftenest a public-house ; others are country artisans ; others, 
again, take service as agricultural or industrial labourers ; 
others go abroad to do harvesting, or even take the train each 
morning to go and work in the centres of industry ; and after 
all that, what is left of the 50,000 or 60,000 peasants of whom 
I was speaking a moment ago ? Barely a few thousands, who 
can still painfully, by a hard toil, by a real exploitation of 
themselves and their families, make the two ends meet. The 
rest have fallen into the proletariate, or cultivate for some one 
else's profit ; and this diminution of cultivating ownership in 
consequence of insufficient capital, of partition due to the 
laws on inheritance, of the ever-growing aggravation of fiscal 
and military charges, is to be found indicated in the official 
statistics. Here are the figures given upon this subject by 
the last census. Taking into account only the ordinary forms 
of cultivation, there were in 1880 out of every 100 hectares 
of arable land 36 worked by the owner himself and 64 rented 
for working. In 1 895 ownership by the cultivator sank to 31 hec- 
tares in every hundred, against 69 per cent, which were rented. 
Let us ask now what inference is to be drawn from the 
facts which I have just set before you. From the point of 
Economic view of distribution, Socialism (which aims at 
cf f peasant umtm m tne same hands property and labour) 
property. has no fault to find with peasant property. In 
this case there is a wedlock of Property and Labour. The 
cultivator is joined to his instrument of labour what he 
produces is the result of his labour ; and from that all Socialists 
agree in saying, that there is no ground for bringing pressure 
to make peasant property come into the collective domain. 
But if Socialists are unwilling to touch peasant property 



E. VANDERVELDE 207 

because it is closely associated with labour, because it is 
fertilized by the sweat of the peasant they note, and every- 
body must note, that the development of capitalism, the 
progress of industry, and the rise in the value of land, under 
the influence of towns, necessarily result in diminishing peasant 
property, in restricting the area of soil occupied by cultivating 
owners, in developing more and more cultivation by farmers 
who pay rent. It is capitalistic agriculture alone which 
furnishes sufficient capital to work the land in an intensive 
manner, with perfected appliances; it is it which allows 
agriculture to struggle against foreign competition and to 
become, in a word, an industry like other industries ; to crush 
this development (supposing it were possible to do so) would 
be, as Pecqueur put it, to decree mediocrity all round. 

Thus peasant property, equitable from the distributive 
point of view, is open to serious criticism from the point of 
view of production. And that brings me to speak capitalistic 
of the other form of property in land capitalistic property, 
property, worked by the cultivator no longer on his own 
account, but under obligation to pay a rent to the owner of 
the soil. We said just now that the only form of property 
which can appear justifiable is property founded on work. 
Well, who works on a great estate ? Is it the owner himself ? 
He is seldom to be seen, except perhaps in the shooting 
season. I see a farmer directing the business, I see agricultural 
labourers toiling from morning till night ; these are the workers, 
but they are not the owners of the property. On the contrary, 
we remark the divorce of property and work on the one side, 
a toiling rural population ; on the other, town-dwellers, whose 
part is most often confined to pocketing the rents. 

I know that extenuating circumstances are pleaded; that 
according to some economists the recipient of rent for land is 
not a parasite, but is on the contrary the fellow- Papt played 
worker, the banker, even (as was said once by byiand- 
M. de Bruyn, the Minister for Agriculture) the owners - 
"nursing father" of farmers and agricultural labourers, Possibly 



208 MODERN SOCIALISM 

there are exceptions of this sort, possibly there are petits man- 
tcaux bleus who play Providence for some farmers ; but the official 
documents themselves, which are not suspected of Socialistic 
bias, violently contradict those who regard landowners as pro- 
vidential beings, as bankers given by nature to farmers and 
agricultural labourers. I will take only a few examples. This 
is how, in the Agricultural Investigation of 1886, which though 
very incomplete contains things of interest, the Governor of 
West Flanders expresses himself about the landowners in his 
province 

" All, or nearly all, live in a doles far niente, ignorant of most 
of the elements of estate management, scarcely taking the 
trouble to ascertain whether their properties are cultivated in 
their own best interests ; if their rents are paid regularly, all is 
well." (Question 10, p. 314.) 

In this same Agricultural Investigation we could gather a 
series of depositions of the same sort, but I prefer db uno 
disce omnes to quote to you another fact, related in an interest- 
ing pamphlet by one of the founders of the agricultural co- 
operative society of Borsbeke near Alost. The farmers of this 
village had formed themselves into a society, and had written 
to their landowners to ask them to take some shares. All 
these landowners without exception live outside the parish. 
There were twenty of them only three took the trouble to 
answer the farmers ; the rest sent no answer. One of them 
even sent back the circular without stamping it, so that the 
first expense of the society was in paying the postal charge 
incurred by this protector of agriculture ! 

There is no need for me to go on quoting facts, for you 
know better than any one, that in proportion as the owner of 
the soil ceases to be the squire living with his peasantry and 
becomes the monied man, the rick man of the towns, who as a 
rule scarcely knows where the farms that he buys are, personal 
relations between farmer and landlord become rarer and rarer ; 
the parasitic function of the latter becomes more and more 
clearly apparent ; and the position is the more open to criticism, 



E. VANDERVELDE 209 

because normally, when a country's population and industry 
develop, the rent of land tends to increase, without the 
landowners having to do anything to increase it the point 
which Henry George has well brought out in his celebrated 
book Progress and Poverty, where he studies The rise of 
especially the phenomenon of the increase of rents rents, 
in a new country like the United States. A town is founded ; 
it requires food-products ; the land gets more valuable year by 
year, and if you have had the luck to acquire a piece of soil, 
you can, as George puts it, "/sit down and smoke your pipe ; 
you can lie down like the lazzaroni of Naples or the leperos of 
Mexico ; you can go up in a balloon or dig a hole in the earth ; 
and without doing anything, without increasing the wealth of 
the community one iota, in ten years you will be rich." By 
the development of industrial civilization, by the growth of 
population, rent rises, farm-rents go up, the landowner becomes 
wealthy. And so it was in our old European countries until the 
agricultural crisis of these last years. It is interesting to carry 
one's self fifty years back to see how far the presentment of the 
agrarian question differed from that of to-day. In 1853 the 
Minister of the Interior remarked in the Belgian Chamber that 
the food requirements of the population went on growing and 
the dearth of cereals became greater and greater, while the 
increase of imports was hopelessly slow. " From 1830 to 1839," 
said he, " our imports of cereals (rye and wheat) averaged 41 
million hectolitres a year; from 1840 to 1852 this average rose 
annually to 102 millions. If in the shade of peace the popu- 
lation of Belgium continues to grow in the same propor- 
tion, before ten years are out the shortage in our supply of 
cereals I hardly dare state the figure will be about two 
million hectolitres. I keep below the truth, that it may be 
impossible to dispute my figure." (Ann. Par I. Chambre des 
Repr'esentantS) Nov. 25, 1853.) At that time, then, the agrarian 
question meant the insufficient production of cereals and other 
food-stuffs. There was not enough bread to go round; in- 
dustrial wages were not rising, or even were falling ; agricultural 

p 



2io MODERN SOCIALISM 

wages remained at a deplorably low level; but the demand 
for agricultural products went on increasing constantly, and 
the rents for farms went up, up, continually up, even during 
the famine in Flanders, so that at that time one certainly might 
have said of the Belgian landowners, what Ricardo said of land- 
owners in general, that they formed the only class in society whose 
interests were opposed to those of the rest of the population. 

This rise of farm-rents under the influence of the develop- 
ment of industry continues till the time when the progress of 
The Agpicul- the transport industry entirely alters the situation, 
turai crisis. an d the competition of foreign corn imported from 
the United States, from India, and from Russia, effects in our 
rural districts ravages more terrible than the Cossack invasions, 
the Ganges epidemics, or the storms which come over the 
Atlantic. Thenceforward farm-rents fall, rent of land goes 
steadily down, the agricultural crisis becomes more and more 
painful, and soon the development of land transport begins to 
accentuate it still further. You know that since 1870 the 
Belgian Government 1 has instituted special railway rates for 
Workmen's workmen. In 1870 industrial prosperity was in 
trains. full swing. Urban manufacturers and managers 
of collieries were crying out for cheap labour. It was hoped 
that trade-union opposition would be broken down, if rural 
labourers were drawn in by a serious reduction in the passenger 
rates such a reduction that to-day the Belgian State may be 
said to carry workmen for almost nothing. Have you ever 
had the curiosity to take up the railway guide and see what it 
costs a workman to travel, for instance, 50 kilometres? For 
a single journey there and back the ordinary traveller pays 
3 francs 5 centimes, whilst a workman, for six journeys 
there and back with his weekly ticket, only pays 2 francs 25 
centimes. He pays less, therefore, for six journeys than the 
ordinary traveller for a single journey. What is the result? 
Thousands and thousands of labourers, not finding a sufficient 
livelihood in the country, not having ready to hand local 
1 The Belgian railways are State-owned and State-managed. 



E. VANDERVELDE 211 

industries or large farms which can employ them, not finding 
work in winter since the introduction of threshing-machines, 
have acquired the habit of going every day to work in towns or 
industrial centres. I asked the Minister of Railways to supply me 
with the statistics for workmen's tickets from year to year since 
1870; here are the figures which he has kindly furnished : 

Year. Number of weekly tickets. 
1870 14,223 

1875 I93>675 

1880 335o56 

1885 . . . x . . . 667,522 

1890 1,018,383 

1895 1,759,025 

1897 l 2,699,594 

There must be further added to these figures the workmen's 
tickets issued by the North Belgian company, the local railways, 
etc. ; add to that the 45,000 agricultural labourers who go off 
every year to work in foreign countries ; and you will come 
to conclude that over 100,000 Belgian proletarians, while 
continuing to live in the country, have really become industrial 
proletarians, manual workers, absent during half the year. 
They have still a strip of land which they own, or, more 
frequently, rent ; in the statistics they are counted as farmers. 
In reality they are labourers, proletarians in every sense of 
the term ; and we have to ask, what, from the point of view 
of cultivation, have been the effects of such a change. 

On the one hand, foreign competition comes in and lowers 
rentals to some extent (although in many districts the lowering 
of rent has not corresponded to the fall in prices), and on the 
other hand, the labourers go off townwards and work in indus- 
trial centres, and agricultural labour becomes increasingly rare, 
and, in virtue of the laws of supply and demand, increasingly 
dear. The results of this double phenomenon, changes in 
from the point of view of culture, are strikingly cultivation, 
apparent in the last agricultural census. But they are not the 
same in all districts. If, for instance, we take the province of 

1 In 1900 the figure reached was 4,515,214. 



212 



MODERN SOCIALISM 



Luxembourg, the Ardennes district, we note that the number 
of tiny plots of less than 2 hectares is diminishing, and the 
number of large farms of over 50 hectares is diminishing no 
less, while that of middle-sized areas of cultivation is on the 
increase. What does this mean? Why do the tiny plots 
diminish ? Because, the means of transport being little 
developed in Luxembourg, the labourers, instead of going off 
every day into the towns or industrial centres, are obliged to 
reside there permanently and give up their bit of land. Why 
do the large farms diminish ? Because agricultural labourers 
are no longer to be had, because they are very expensive, and 
because these conditions render it more advantageous to sub- 
divide cultivation and to create farms of small or moderate 
size, which are worked by the farmer with the help of his 
family. Thus industrial capitalism more and more pumps the 
living forces out of the country, and the result is that in certain 
districts cultivation by families is developing ; but it is quite 
otherwise in districts with developed transport facilities, where 
labourers easily go off to the town and return home every 
evening. In that case the opposite phenomenon shows itself. 
In Hainaut, for instance, between 1889 and 1895 small and 
middle-sized areas diminished, whereas there was an increase 
of tiny plots cultivated by labourers, agricultural or industrial, 
and also a very marked increase of large farms (those over 50 
hectares). If we now consider the country as a whole, the 
two censuses of 1880 and 1895 supply us with the following 
figures for comparison : 





1880. 


1895. 


Acres of cultivation under 50 ares . 
,, ,, ,, from 50 ares to 2 hectares 
,, ,, ,, 2 to IO hectares 
10 to 50 hectares 
,, ,, over 50 hectares 


472,471 
238,092 
158,261 
38,169 
3,403 


458,120 
176,233 
150,586 
32,065 

3>584 




910,396 


820,588 



E. VANDERVELDE 213 

So there is a diminution under every head except that of large 
farms, of over 50 hectares. But if the statements of the 
Minister of Agriculture are to be trusted, this diminution is 
only apparent so far as concerns areas of less than two 
hectares: in 1880 there were included in the list very many 
infinitesimal plots which in 1895 were left out - Conversely, 
there appears to be no doubt that the number of large areas 
has perceptibly increased: 3,403 in 1880; 3,584 in 1895. 

Thus we have reached in these last years a turning-point 
in our agricultural evolution. Till now, the subdivision of 
areas of cultivation was constantly on the increase. i n( i us t r iaii- 
Belgium was becoming more and more the land zation of 
of cultivation on a small, even a minute, scale. a e piculture - 
For the last fifteen years we see cultivation on the large scale 
gaining, and farms of over 50 hectares becoming more 
numerous. This seems to me to result from the fact that 
agriculture is coming more and more to be an industry like 
the other industries, which, as a rule, it is advantageous to 
exploit on a large scale. Certainly for all districts and all 
kinds of cultivation this is not the case. I readily admit that 
the question is infinitely more complicated when it is a matter of 
cultivation than when it is one of industry, properly so called. 
All the same, what cannot be disputed is the progressive 
intensification of agriculture, the development of the use of 
machinery in a word, the increase of fixed capital in com- 
parison with fluctuating (i.e. in comparison with capital for 
paying manual labour) ; agriculture is being industrialized ; 
arable land is turned into pasture ; we see the multiplication 
of agricultural industries distilling, sugar-making, the manu- 
facture of butter, of chicory, of syrups, etc.; and in conse- 
quence of this transformation, more and more the population 
of the rural districts is splitting into two quite distinct classes. 
You see there a growing proletariate, made up of agricultural 
labourers, who are the minority ; industrial labourers, who go 
off daily to work elsewhere ; and what may be called half-and- 
half labourers, half agricultural, half industrial, working in the 



214 MODERN SOCIALISM 

sugar factories at certain periods, harvesting at others, going 
to the collieries in winter, to resume work in the fields in 
the spring. It is just because of the development of this 
proletariate that we find in the country districts audiences 
open to our ideas and favourable to our programme. 

I should like, in conclusion, to point out to you the guiding 
The Socialist principles of this programme, apologizing for my 
programme, inroads upon your attention, while keenly regretting 
that for lack of time I must confine myself to a few short 
outlines. 

Let me first summarize the considerations which I have 
submitted to you thus far. Peasant property seems to us 
Socialism inferior from the productive standpoint to capi- 
pertyhT talistic property, while from the distributive stand- 
land, point it is superior. The capitalistic evolution 
tends to make it disappear, but Socialism has not to aim at 
expropriating it. On the other hand, Socialism pronounces a 
decidedly adverse verdict upon capitalistic property ; and in 
all our congresses (notably at the International Congress in 
London) we have agreed unanimously in demanding the 
collective appropriation of the land, as well as of the other 
means of production. But when we come to the means of 
realizing this ideal, the question presents itself differently in 
different countries. In a country like England, for instance, 
and above all, like Scotland, where property in land is 
otherwise concentrated, it is quite natural that theorists who 
are not even Socialists bourgeois economists like H. George 
or Wallace should demand at once the socialization, national- 
ization, of the land. As to the means of realizing the change, 
I will confine myself to outlining the solution suggested by 
Colins and his school. They think that there are reasons 
for bringing the land into collective ownership before the 
instruments of labour are brought, and to indemnify the 
capitalistic landowners they suggest a tax of 25 per cent, 
on collateral inheritances and testamentary successions, plus a 
tax (the percentage to be determined) on inheritances which 



E. VANDERVELDE 215 

descend in a direct line. The percentage, of course, is 
immaterial to the theory : the question would need examining 
in the light of circumstances of time and place ; all I retain at 
this moment is the root idea of the Colins school, which is to 
buy up the land with the yield from taxes on inheritance, and 
to let it out by auction either to individuals or to associations. 
The Colins system does not imply at this point any transforma- 
tion of the capitalistic regime as a whole. Capital remains 
private property ; only the land, the basis of all Land 
industry and all agriculture, belongs to society col- national- 
lectively, and the sections of it are let to individuals 2 
or associations for the profit of all, instead of, as now, for that of 
a few landowners. There would be only one alteration ; the 
farmer, instead of paying rent for land to an individual, would 
pay it to society as a whole, and this payment would help to 
reduce all the burdens which weigh on the members of society. 
The receipt of farm and other rents by the State would 
correspondingly lower taxation. 

According to Colins, this expropriation of the landowner 
should come before the expropriation of capitalists properly 
so-called; but most modern Socialists, and notably those of 
Marx's school, think this procedure a mistake. Their view is 
that landed property represents but a comparatively inconsider- 
able part of social capital as a whole. In this opinion the 
first steps should be taken against the great industries which 
are ripe for collectivism those which already form a virtual 
monopoly and, in a word, realize the maximum of capitalistic 
concentration. Herr Kautsky, in the book which he has 
recently published on the agrarian question (Die Agrar- 
frage\ flatly condemns the resumption of the land by the 
State under a capitalist regime. His standpoint is pre-eminently 
German, and he thinks that in Germany the substitution of 
the State for the landlords would be a permanent menace to 
public liberty. Evidently the same danger does not exist, or 
at least does not exist in the same degree, in countries with 
liberal or democratic institutions like Switzerland or England ; 



216 MODERN SOCIALISM 

and therefore, wherever ownership is concentrated in a few 
hands, we see many theorists and reformers declaring for the 
immediate socialization of the soil and the agencies of Nature. 
As for the particular case of Belgium, there are at any rate 
some portions of the land which ought, without delay, to 
become the property of society. Thus, for example, many 
bourgeois economists themselves agree with us in recognizing 
that the ownership of the forests ought to belong to the 
State rather than to private persons. So, too, with the com- 
mon lands, which many good thinkers who are not Socialists 
would like to see conserved, extended, and put to good use. 
Recently even our Minister of Agriculture has objected to the 
squandering of common lands, and has declared that in future 
the Government will no longer authorize parishes to alienate 
them. 

Lastly, what would, from the cultivator's point of view, 
present very great advantages, would be the taking over of the 
Socializa- great agricultural industries, and notably of the 
Cultural* 14 " *hree wmcn are manifestly evolving in the collec- 
industries. tivist direction dairying, distilling, and sugar- 
making. 

As for dairying, the evolution is quite marked. 1 Co- 
operative societies are formed, grouped, federated ; recently 

I Dair in ^^ ^ ave ^ oun( ^ e ^ tne Dairy Association, which 
"" you all know ; and it may be foreseen that we shall 
shortly witness the formation of a vast trust, the " Belgian 
Dairies," which will be organized on co-operative, instead of 
capitalistic foundations. If this evolution goes on in its 
present form, and capitalism does not get possession of the 
dairying industry, it will be an interesting example of spon- 
taneous collectivism, of the socialization of industry realized 

1 In 1899 there were 298 co-operative dairies in Belgium, with 34,205 
members ; in 1900 the figures had risen to 356 and 40,706. In the latter 
year the members per society averaged 114; the sales per member, 510 
francs (20 8s.); the number of cows kept per member, 271 (showing 
what small cultivators the co-operators are). 



E. VANDERVELDE 217 

by the people interested, with State advice and intervention. 
If it is otherwise, and capitalism gets the better of co-operative 
industry, we shall then be confronted by the problem of ex- 
propriation, which confronts us in the case of the sugar 
factories and distilleries. 

I need not demonstrate to you what an advantage it 
would be for country people to be delivered from the capi- 
talistic monopoly, with which a small number of u ThQ 
sugar manufacturers burden them. Further, the sugar 
workers of the sugar factories will obtain the industry ' 
advantages which the State's employees secure. Nor can it 
be doubted that, from the tax-payer's point of view, it would 
be wholly an advantage that the profits of the sugar industry, 
instead of belonging to a few, should be reaped by the whole 
community. Perhaps it will be objected that the sugar in- 
dustry's golden age is over, and that it needs, in order to hold 
its ground, fiscal privileges, said to be conferred on it much 
less on behalf of the capitalists interested than on behalf of 
agriculturists. But if so, it is one more reason for entrusting 
the guardianship of agricultural interests to the community 
itself, rather than to private individuals, who too often take 
advantage of it in order to exploit the cultivators. 

In the case of the distilleries the question becomes still 
more simple ; for, thanks to M. de Smet de Naeyer, the position 
of the distilleries is such that for some months we m. The 
have witnessed the extraordinary spectacle of the distilleries, 
distillers themselves asking to be saved by being bought out. 
In short, for agricultural as for all other industries, the 
concentration of capital leads, we believe, to the need of 
socializing the means of production. 

But while that is our ideal, and we regard collectivism as 
the final result, the logical outcome, of the industrial and 
agricultural evolution, we at the same time take our stand for 
immediate measures, and energetically demand that some- 
thing be done to protect the agricultural labourer, who, in the 
society of to-day, might be called "the man whom no one 



218 MODERN SOCIALISM 

remembers." Some time after the disturbances of March, 
1886, the former deputy for Waremme, the late M. Cartuy- 
Proteetion vels, said to the Chamber : " The industrial 
cultural workmen obtain protection by law, and on all sides 
labourers, suggestions are made for measures to better their 
lot. Why? Because they show their teeth; because they 
protest ; because they organize. But what has been done for 
the agricultural labourers ? Nothing." These words, which 
were only too true fifteen years ago, may be said again to-day. 
We have in the Chamber an agricultural group which ener- 
getically defends the interests of the large farmers and the 
landowners. As a rule, the Conservatives neglect the interests 
of the agricultural labourers ; but it is they to whom the 
Socialists before all appeal, and whom they especially aspire 
to win over. I know that among these workers, bowed 
beneath the weight of immemorial domination, propaganda 
will be difficult. They are not like the industrial workman, 
the proletarian completely sundered from the instruments 
with which he works, robbed of the prospect of ever getting 
a share in the ownership of the means of production, con- 
demned to remain a proletarian for ever, and for that very 
reason making his ideal, not the acquisition of private property, 
but the conquest of social property. On the contrary, in the 
agricultural labourer there are, so to say, two contradictory 
spirits : the spirit of the small peasant who has still his plot 
of land, owned or rented, and the spirit of the proletarian 
working on a capitalist's account. The first makes him a 
Conservative, inclined to religion and resignation ; the second 
makes him accessible to Socialism ; and the latter only over- 
comes the former in so far as capitalism overcomes the 
primitive forms of ownership and cultivation. 

The driving force in this transformation is the development 
Revolution ^ industry. ^ ls industry which has caused the 
effected by common land to disappear, which has killed by 
industry. i ts com p e tition the small industries of the home 
and the farm, which has provoked the agricultural crisis 



E. VANDERVELDE 219 

by flooding our markets with foreign corn, which has drawn 
off to the town (the " cuttle-fish town ") the great mass of rural 
labourers ; but it is industry also which is rationalizing agricul- 
ture, perfecting its methods in short, revolutionizing agricultural 
technique. Bebel once said, " Wherever a factory chimney rises, 
there you will see Socialists being made." In the same way 
wherever agricultural capitalism develops and splits the popu- 
lation of the countrysides into two classes, Socialism follows 
capitalism like a shadow, and wins over, not only this rural pro- 
letariate which bears the vrhole weight of our present society on its 
shoulders, but also the small cultivators and landowners, whose 
position is often more wretched than that of the labourers them- 
selves. And lastly, just as industrial Socialism has won over 
individuals in the bourgeois class who had no personal interest 
in fighting the people's battle, so we strongly hope that agri- 
cultural Socialism will enter the heads of many large farmers, 
who will understand that parasitic ownership must disappear 
and they themselves be set free when their labourers are. 



XVI 

SOCIALISM AND AGRICULTURE AS OFFICI- 
ALLY REGARDED BY THE GERMAN 
SOCIAL DEMOCRATIC PARTY 

RESOLUTION ADOPTED BY THE FRANKFORT CONGRESS 
(1894) ON THE AGRARIAN QUESTION 

This resolution was moved by G. von Vollmar and Dr. Bruno 
Schoenlank. Its notable feature is its idea that Socialism should 
take sides with the peasant proprietor against the forces crushing 
him. 

THE agrarian question is the product of the modern economic 
system. The more home agriculture becomes dependent on 
the world-market and the international competition of all 
agricultural countries, the more it enters the sphere of influence 
of capitalistic production of commodities, banking, and usury, 
the more quickly is the agrarian question aggravated into the 
agrarian crisis. 

In Prussian Germany the agricultural employing class, which 
is not distinct in essence from the great industrial capitalists, 
fights by the side of the rural nobility. This nobility is only 
maintained artificially by bounties, protective duties, rebates 
on exports, and privileges in respect of taxation. In spite of 
all, the Junker-farming 1 east of the Elbe is largely over- 

1 The Junkers are the Prussian squirearchy, who owe their dispro- 
portionate political influence to the fact that they supply the Prussian army 
with its officers. 

220 



THE GERMAN PARTY 221 

indebted through bad agriculture, partition of inheritances, and 
arrears of purchase-money, and its doom is sealed. 

To this must be added the constantly accentuated cleavage 
between the great landowners and the class of small peasants. 
The latter is tottering, burdened with military service and 
heavy taxes, hampered by mortgages and personal debts, and 
oppressed on all sides. For it protective duties are only an 
empty show. This fiscal policy cramps the purchasing power 
of the labouring class, and restricts the peasant's market. The 
peasant is becoming proletarized. 

On the other hand, the class opposition between rural em- 
ployers and rural workers is developed more and more clearly. 
From this has resulted a rural working-class. It is bound by 
feudal laws, which deny to its members the right of combination, 
and place them under the " Ordinance of Servants," while they 
no longer enjoy the old patriarchal relations, which gave them, as 
belonging to their masters, a definitely assured existence. The 
intermediate classes, day-labourers with small holdings, dwarf 
peasants who are driven to wage-earning to supplement their 
resources, sink, in spite of all apparent reforms, into the class 
of the rural proletariate. With uncertainty of gain, wage- 
pressure and bad management, and the increase of travelling 
labourers, the cleavage between landed capital and rural 
labour grows ; and the class-consciousness of the rural worker 
awakens. 

Hence the great need that the Social Democracy shall occupy 
itself in the most serious manner with the agrarian question. 
The preliminary for this is a detailed knowledge of the agri- 
cultural situation. As in Germany this varies technically, 
economically, and socially, our propaganda must match it 
and be varied to suit the peculiarities of the country people. 

The agrarian question, as a necessary ingredient of the 
social question, will only be finally solved when the land, with 
all the means of work, is given back to the producers, who now 
as wage-workers or small peasantry cultivate it in the service 
of capitalists. But at present the necessitous condition of the 



222 MODERN SOCIALISM 

rural worker must be alleviated by fundamental reforms. The 
immediate object of the party is to formulate a special pro- 
gramme of agrarian policy, explaining and completing the 
immediate demands of the Erfurt Programme, which are very 
advantageous for the peasants as well as for the country 
labourers, in an exposition adapted to the comprehension of 
the rural population. 

The law protecting peasants ought to safeguard the peasant, 
whether as taxpayer, debtor, or agriculturist. 

The law protecting rural labourers should afford the rural 
labourer the right of combination and of public meeting ; 
should place him on a level with the industrial workers 
(removal of the Ordinance of Servants); and by special 
protective social legislation (as to work-time, conditions of 
work and inspectorates) should safeguard him from unbridled 
exploitation. 

A special Agrarian Committee is to lay its proposals before 
the next Congress. 

The Committee appointed was a very strong and representative 
one. It divided Germany into three areas, and itself into three sub- 
committees, who drew up for the Breslau Congress (1895) the 
following three draft programmes : 



DRAFT PROGRAMME OF THE SUB-COMMITTEE FOR 
NORTH GERMANY. 

The sub-committee consisted of Bebel, Liebknecht, Molkenbuhr, 
Schippel, and Schoenlank ; the area which they considered was that 
east of the Elbe. 

1. Organization by the (Imperial) State of loans on mort- 
gage. Interest on loans to cover costs only. 

2. Organization by the (Imperial) State of the insurance 
of movable and immovable property against fire, hail, or 
floods, and the insurance of cattle. 

3. Construction and maintenance of public streets, roads, 
and watercourses by the (Imperial) State. 



THE GERMAN PARTY 223 

4. The maintenance of common property (common lands), 
and common rights over water, woods, and pasture. 

5. Transformation of property in mortmain, of lands 
belonging to institutions and churches, into public property. 
Abolition of fideicommissa. 

6. Founding of compulsory co-operative societies for 
improvements, irrigation, and draining ; and support of these 
co-operative societies by State loans. 

7. The establishment of public technical agricultural 
schools and experimental stations, and the holding of regular 
lectures upon agriculture.' Teaching, school appliances, and 
maintenance free. 

8. Lowering of the rates for personal and goods traffic. 

9. Transference to the public of all private forests. Free 
sporting rights on lands owned or rented. Full compensation 
for all damages done in hunting and by game. 

10. Chambers of Agriculture, where all persons engaged 
in agriculture shall be on an equal footing. 

11. Agricultural arbitration courts for the settlement of 
all disputes arising out of conditions of wages, work, or 
service. 

12. Compulsory insurance against sickness of workmen 
and servants, and also of independent cultivators whose 
income does not exceed 2000 marks (^100). 

13. Veterinary attendance and medicines without charge. 

DRAFT PROGRAMME OF THE SUB-COMMITTEE FOR 
CENTRAL GERMANY. 

The sub-committee was composed of Bock, Hug:, Katzenstein, 
Schulze, and Dr. Quarck. The area examined included Saxony, 
Thuringia, Oldenburg-, Brunswick, Westphalia, and Hanover. 

After the concluding section of the Erfurt Programme the 
following is to be added : 

In the interest of the small peasants and rural labourers, 
as well as to preserve and develop agricultural production : 



224 MODERN SOCIALISM 

1. Retention and increase of public property in land 
(every kind of State and communal property municipal 
lands, commons, common forest, etc.) under control of the 
popularly elected bodies ; abolition of all laws and ordinances 
promoting sub-division and alienation ; communes to be given 
a right of pre-emption in respect of the lands of bankrupts sold 
by auction. 

2. Farming of their domains by the State and communes 
on their own account ; or lease of them to co-operative asso- 
ciations of agricultural labourers or peasants farming per- 
sonally, under State and communal inspection ; clearing and 
improvement of domains; creation of irrigation works; 
encouragement of forestry, tillage, horticulture, and grass 
culture ; improvement of cattle ; care of water-supply and 
rural transport; establishment and support of agricultural 
colleges ; compulsory continuation schools, and model farms, 
with instruction and materials provided free of charge by the 
State or the communes. 

3. Nationalization of mortgages and landed debts. 

4. Nationalization of every branch of agricultural insurance ; 
maximum extension of this to all branches of work ; gratuitous 
veterinary service ; and State grants to those impoverished by 
devastating natural occurrences. 

5. Maintenance and extension of the existing rights of 
forestry and turbary, to be equally shared by all members of a 
commune ; right of purchasing leafage, firewood, and timber 
from State and communal woods at fixed prices; prevention 
of or, as the case may be, full compensation for damage done 
by game ; sport to be free, and harmful animals to be exter- 
minated. 

6. Restriction and gradual abolition of the dependence of 
farm produce upon middlemen,, by support of the co-operative 
system and purchase of produce needed for public purposes, 
by preference from the producers. 

7. Removal of the land-tax. 

8. Right of the tenant farmer, if the net yield persistently 



THE GERMAN PARTY 22$ 

deteriorates, or severe natural damages are incurred, to demand 
the reduction of his rent by an agricultural arbitration court. 

9. Extension of legislation protecting workmen, and the 
right of combination, to agriculture; State supervision of all 
agricultural businesses ; rural arbitration courts j investigation 
and regulation of rural conditions of employment and work 
by an imperial Agricultural Department, district agricultural 
bureaux, and chambers of agriculture. 

10. Abolition of all public privileges connected with 
private possession of land, and suppression of property- 
districts. 

DRAFT PROGRAMME OF THE SUB-COMMITTEE FOR 
SOUTH GERMANY. 

The sub-committee consisted of Sassier, Birk, Eduard David, 
Geek, and Von Vollmar ; the area which it examined included Baden, 
Bavaria, the Palatinate, and Wiirtemberg. 

In regard to the agrarian question, the Social Demo- 
cratic party of Germany makes the following immediate 
demands : 

1. Systematic organization of national food-supply by the 
State, which is progressively to increase its influence over 
agricultural production and the marketing of its produce. 

2. Prohibition of the sale of public property in land 
(belonging to communes, corporations, or the State). 

3. Owners of giant properties (latifundia) to be expro- 
priated ; the larger estates to be subject to the rules of the law 
protecting industrial workers, as well as to the State-inspection 
of its machinery and working. 

4. Abolition of all magisterial functions connected with 
landed property and other privileges, such as independent pro- 
perty districts, privileges on representative bodies, patronage, 
fidei-com?nissa, etc. 

5. Progressive nationalization of debts secured on land, and 
the whole credit system, with a lowering of the rate of interest. 

Q 



226 MODERN SOCIALISM 

The State to acquire rights over agricultural products. Peasant 
properties sold by auction on bankruptcy to be purchased up 
to the limit of their appraised value by the communes; the 
procedure may be proposed by the debtor himself, to whom, 
if solvent, the land may be leased. 

6. Agricultural land owned by the State to be applied to 
the establishment of model farms, to the enlargement of the 
property of communes, and also to the leasing of land at its 
economic rent to lessees cultivating it personally. Such allot- 
ments are to be calculated to provide the cultivator's family 
with their entire subsistence. 

7. Establishment of extensive agricultural colleges in con- 
nection with the model farms, for gratuitous technical education. 

8. State loans to be given to communes to purchase and 
manage estates of tenure, to reclaim wastes, to improve the 
soil, the breed of cattle, and all other branches of farming, and 
to encourage co-operation under State inspection. 

9. Purchase of the agricultural products required for the 
provisioning of public institutions, of suitable quality, direct 
from the producers. 

10. Regulation of private contracts of tenancy, according 
to the value of the yield from time to time, and compensation 
for outlay incurred by tenant farmers for the improvement of 
the soil. 

11. Nationalization of every branch of agricultural insur- 
ance, and State intervention in cases of impoverishment through 
devastating natural occurrences. 

12. Uncurtailed maintenance of existing rights over forests 
and heaths. Prevention of, or, as the case may be, full com- 
pensation for damage done by game. 

13. Complete legal equalization of agricultural labourers 
with industrial wage-workers. Settlement of all disputes arising 
out of conditions of work by arbitration courts, to be composed 
in equal parts of workers and employers. 

14. Bureaux and Chambers of Agriculture, in which pro- 
prietors, tenants, and workers participate on an equal footing, 



THE GERMAN PARTY 227 

to investigate and regulate conditions of work, wages, tenancy, 
and industry, and to represent all professional interests. 

All these draft programmes, but especially the South German one 
inspired by Von Vollmar, encountered extreme opposition as soon 
as they were published, because of their attempt to prop the small 
independent cultivators. At the Breslau Congress every compromise 
or modification of this idea was rejected, and the following resolution, 
moved by Kautsky, became the official expression of the party's 
attitude. 

The draft Agrarian Programme proposed by the Agrarian 
Commission is to be rejected, because it sets before the eyes 
of the peasantry the improvement of their position, that is, the 
confirmation of their private ownership; it proclaims the 
interest of agriculture in the modem social system to be an 
interest of the proletariate ; and yet the interest of agriculture, 
like that of industry, is, under the rule of private property in 
the means of production, an interest of the possessor of the 
means of production, who exploits the proletariate. Further, 
the draft Agrarian Programme suggests new weapons for the 
State of the exploiting class, and thereby renders the class-war 
of the proletariate more difficult ; and, lastly, it sets before the 
capitalistic State objects which can only be usefully carried 
out by a State in which the proletariate has captured political 
power. 

The Congress recognizes that agriculture has its peculiar 
laws, differing from those of industry, which must be studied 
and considered if the Social Democracy is to develop an 
extended operation in rural districts. It therefore suggests to 
the Committee of the party that, having regard to the impetus 
already given by the Agrarian Committee, it might entrust a 
number of suitable persons with the task of undertaking a 
fundamental study of the matter available concerning German 
agrarian conditions, and publishing the results of this study in 
a series of articles as a " Collection of works on agrarian policy 
by the Social Democratic party of Germany." 

The Committee of the party is fully empowered to make 



228 MODERN SOCIALISM 

the necessary expenditure to enable the comrades entrusted 
with the work in question to complete their task. 1 

1 Little has since been done officially ; but two important works have 
appeared, Kautsky's Die Agrarfrage (1898), against peasant proprietorship, 
and Dr. Eduard David's Socialismus und Landwirthschaft (1903), in favour 
of it. Both writers have kept up, with others, a considerable debate in the 
party's journals. 



XVII 

THE FREE TRADE CONTROVERSY IN RELA- 
TION TO INDUSTRIAL PARASITISM AND 
THE POLICY OF A NATIONAL MINIMUM 

BY SIDNEY AND BEATRICE WEBB 

This striking dissertation appeared as an appendix to Mr. and 
Mrs. Webb's Industrial Democracy (1897). For the subject, cp. 
Introduction, pp. xxix-xxxi ; and for the authors, cp. supra, p. 90. 

THE existence of parasitic trades supplies the critic of inter- 
national Free Trade with an argument which has not yet been 
adequately met To the enlightened patriot, ambitious for 
the utmost possible development of his country, it has always 
seemed a drawback to Free Trade, that it tended, to a greater 
or lesser extent, to limit his fellow-countrymen's choice of 
occupation. Thus, one community, possessing great mineral 
wealth, might presently find a large proportion of its population 
driven underground ; another might see itself doomed to be- 
come the mere stock-yard and slaughter-house of the world ; 
whilst the destiny of a third might be to have its countryside de- 
populated, and the bulk of its citizens engaged in the manufac- 
ture, in the slum tenements of great cities, of cheap boots and 
ready-made clothing for the whole habitable globe. To this 
contention the answer has usually been that the specialization 
of national function, whilst never likely to be carried to an 
extreme, was economically advantageous all round. Such a 
reply ignores the possibility of industrial parasitism. If 

229 



230 MODERN SOCIALISM 

unfettered freedom of trade ensured that each nation would 
retain the industry in which its efficiency was highest, and its 
potentialities were greatest, this international "division of 
labour " might be accepted as the price to be paid for getting 
every commodity with the minimum of labour. But under 
unfettered freedom of competition there is, as we have seen, 
no such guarantee. Within a trade, one district may drive all 
the rest out of the business, not by reason of any genuine 
advantage in productive efficiency, but merely because the 
workers in the successful district get some aid from the rates 
or from other sources. Within a community, too, unless care 
be taken to prevent any kind of parasitism, one trade or one 
process may flourish and expand at the expense of all the rest, 
not because it is favoured by natural advantages or acquired 
capacity, but merely by reason of some sort of "bounty." 
Under Free Trade the international pressure for cheapness is 
always tending to select, as the speciality of each nation in 
the world-market, those of its industries in which the employers 
can produce most cheaply. If each trade were self-supporting, 
the increased efficiency of the regulated trades would bring 
these easily to the top, notwithstanding (or rather, in conse- 
quence of) the relatively high wages, short hours, and good 
sanitary conditions enjoyed by their operatives. If, however, 
the employers in some trades can obtain labour partially 
subsisted from other sources, or if they are free to use up in 
their service not only the daily renewed energy, but also the 
capital value of successive relays of deteriorating workers, they 
may well be able to export more cheaply than the self-support- 
ing trades, to the detriment of these, and of the community 
itself. And this, as we have seen, is the direct result of the 
very freedom of Individual Bargaining on which the Free 
Traders rely. Indeed, if we follow out to its logical conclusion 
the panacea of unlimited freedom of competitive industry both 
within the country and without, we arrive at a state of things 
in which, out of all the various trades that each community 
pursues, those might be "selected" for indefinite expansion, 



SIDNEY AND BEATRICE WEBB 231 

and for the supply of the world-market, in which the employers 
enjoyed the advantage of the greatest bounty; those, for 
instance, which were carried on by operatives assisted from 
other classes, or, still worse, those supplied with successive 
relays of necessitous wage-earners standing at such a dis- 
advantage in the sale of their labour that they obtained in return 
wages so low and conditions so bad as to be positively insuffi- 
cient to maintain them permanently in health and efficiency. 
Instead of a world in which each community devoted itself 
to what it could do best, we should get, with the " sweated 
trades," a world in which each community did that which 
reduced its people to the lowest degradation. Hence the 
Protectionist is right when he asserts that, assuming unfettered 
individual competition within each community, international 
free trade may easily tend, not to a good, but to an exceedingly 
vicious international division of labour. 

The criticism is not dealt with, so far as we are aware, in 
any of the publications of the Cobden Club, nor by the 
economic defenders of the Free Trade position. Thus 
Professor Bastable, in his lucid exposition of The Theory of 
International Trade (2nd edition, London, 1897), assumes 
throughout that the prices of commodities in the home 
market, and thus their relative export, will vary according to 
the actual " cost of production," instead of merely according 
to their " expenses of production," to the capitalist entrepreneur. 
Yet it is evidently not the sum of human efforts and sacrifices 
involved in the production that affects the import or export 
trade, but simply the expenses that production involves to the 
capitalist. The absence of any reference to the possibility of 
the cheapness being due to underpaid (because subsidized or 
deteriorating) labour, enables Professor Bastable optimistically 
to infer (p. 18) that " the rule is that each nation exports those 
commodities for the production of which it is specially suited.'' 
Similarly Lord Farrer, in The State in its Relation to Trade 
(London, 1883), when stating the argument against Protection, 
simply assumes (p. 134) that the industry for which the country 



232 MODERN SOCIALISM 

is specially suited pays higher wages than others. " One 
thing is certain, viz. that we cannot buy the French or Swiss 
ribbons without making and selling something which we can 
make better and cheaper than ribbons, and which consequently 
brings more profit to our manufacturer, and better wages to our 
workmen? And Mr. B. R. Wise, seeking in his Industrial 
Freedom to revise and restate the Free Trade argument in the 
light of practical experience, is driven to warn his readers that 
" it cannot be too often repeated that the competition of 
abstract political economy that competition through which 
alone political economy has any pretension to the character 
of a science is a competition between equal units," . . . and 
nothing could be further from the truth than to suppose that 
" free competition " in the labour market bore any resemblance 
to the competition between equal units that the current 
expositions of Free Trade theory required. 1 

But though the existence of parasitic trades knocks the 
bottom out of the argument for lai sser faire, it adcls no weight 
to the case for a protective tariff. What the protectionist is 
concerned about is the contraction of some of his country's 
industries ; the evil revealed by our analysis is the expansion 
of certain others. The advocate of a protective tariff aims at 
excluding imports ; the opponent of " sweating," on the other 
hand, sees with regret the rapid growth of particular exports, 
which imply the extension within the country of its most highly 
subsidized or most parasitic industries. Hence, whatever 
ingenious arguments may be found in favour of a protective 
tariff, 2 such a remedy fails altogether to cope with this 

1 B. R. Wise, Industrial Freedom (London, 1882), pp. 13, 15. 

* For any adequate presentment of the case against international free 
trade, the student must turn to Germany or the United States, notably to 
Friedrich List, The National System of Political Economy, published in 
Germany in 1841, and translated by Sampson Lloyd (London, 1885), and 
the works of H. C. Carey. The arguments of List and Carey were 
popularized in America by such writers as Professor R. E. Thompson, 
Politifal Economy with Especial Reference to the Industrial History of 
Nations (Philadelphia, 1882) ; H. M. Hoyt, Protection and Free Trade 



SIDNEY AND BEATRICE WEBB 233 

particular evil. If the expansion of the industries which England 
pursues to the greatest economic advantage say, for instance, 
coal mining and shipbuilding, textile manufacture and machine- 
making is being checked, this is not because coal and ships, 
textiles and machinery are being imported into England from 
abroad, but because other less advantageous industries, within 
England itself, by reason of being favoured with some kind of 
bounty, have secured the use of some of the nation's brains 
and capital, and some of its export trade. This diversion 
would clearly not be counteracted by putting an import duty 
on the small and exceptional amounts of coal and shipping, 
textiles and machinery that we actually import, for this would 
leave unchecked the expansion of the subsidized trades, which 
if the subsidy were only large enough, might go on absorbing 
more and more of the nation's brains and capital, and more 
and more of its export trade. To put it concretely, England 
might find its manufactures and its exports composed, in 
increasing proportions, of slop clothing, cheap furniture and 
knives, and the whole range of products of the sweated trades, 
to the detriment of its present staple industries of cotton and 
coal, ships and machinery. In the same way, every other 
country might find its own manufactures and its own exports 
increasingly made up of the products of its own parasitic trades. 
In short, the absolute exclusion by each country of the imports 
competing with its own products would not, any more than 
Free Trade itself, prevent the expansion within the country of 
those industries which afforded to its wage-earners the worst 
conditions of employment. 1 

the Scientific Validity and Economic Operation of Defensive Duties in the 
United States i 3rd edition (New York, 1886) ; whilst another line has been 
taken by Francis Bowen, American Political Economy. The whole position 
has been restated by Professor Patten, in The Economic Basis of Protection 
(Philadelphia, 1890), and other suggestive works which deserve more 
attention in England. 

1 It is unnecessary to notice the despairing suggestion that a protective 
duty should be placed on the products of the sweated trades themselves. 
But these, as we have seen (if they are really parasitic industries like the 



234 MODERN SOCIALISM 

A dim inkling of this result of international competition is 
at the back of recent proposals for the international application 
of the Device of the Common Rule. During the past seven 
years statesmen have begun to feel their way towards an 
international uniformity of factory legislation, so as to make 
all cotton mills, for instance, work identical hours, and work- 
men are aspiring to an international Trade Unionism, by 
means of which, for example, the coalminers, cotton-operatives, 
glass-workers, or dock- labourers of the world might simul- 
taneously move for better conditions. If, indeed, we could 
arrive at an International Minimum of education and sanitation, 
leisure and wages, below which no country would permit any 
section of its manual workers to be employed in any trade 
whatsoever, industrial parasitism would be a thing of the past. 
But internationalism of this sort a " zollverein based on a 
universal Factory Act and Fair Wages clause " is obviously 
Utopian. What is not so generally understood, either by 
statesmen or by Trade Unionists, is that international uni- 
formity of conditions within a particular trade, which is all 
that is ever contemplated, would do little or nothing to remedy 
the evil of industrial parasitism. In this matter, as in others, a 
man's worst foes are those of his own household. Let us 
imagine, for instance, that, by an international Factory Act, all 
the cotton mills in the world were placed upon a uniform basis 
of hours and child-labour, sanitation, and precautions against 
accidents. Let us carry the uniformity even a stage further, 
and imagine what is impossible,, an international uniformity of 
wage in all cotton mills. All this would in no way prevent a 

wholesale clothing manufacture, and not merely self-supporting but un- 
progressive industries like English agriculture), will usually be exporting 
trades, not subject to the competition of foreign imports. Merely to put an 
import duty on the odds and ends of foreign-made clothing or cheap knives 
that England imports would in no way strengthen the strategic position, as 
against the employer, of the sweated outworkers of East London or Sheffield, 
or render the respectable young women of Leeds less eager to be taken on 
at a pocket-money wage in the well-appointed clothing factories of that 
city. 



SIDNEY AND BEATRICE WEBB 235 

diversion of the nation's brains and capital away from cotton 
manufacture to some other industry, in which, by reason of a 
subsidy or bounty y the employer stood at a greater relative 
advantage towards the home or foreign consumer. The 
country having the greatest natural advantages and technical 
capacity for cotton manufacture would doubtless satisfy the 
great bulk of the world's demand for cotton goods. But, if 
there existed within that same country any trades carried on 
by parasitic labour, or assisted by any kind of bounty, it would 
obtain less of the cotton trade of the world than would other- 
wise be the case ; the marginal business in cotton would tend 
to be abandoned to the next most efficient country, in order 
that some brains and capital might, to the economic loss of 
the nation and of the world, take advantage of the subsidy 
or bounty. 1 We see, therefore, that even an international 
uniformity of conditions within a particular trade would not, 
in face of industrial parasitism at home, prevent the advan- 
tageously situated country from losing a portion of this uniformly 
regulated trade. The parasitic trades have, in fact, upon the 
international distribution of industry, an effect strictly analo- 
gous to that which they have upon the home trade. By ceding 
as a bribe to the consumer the bounty or subsidy which they 
receive, they cause the capital, brains, and labour of the world 
to be distributed, in the aggregate, in a less productive way 
than would otherwise have been the case. 1 

We can now see that the economists of the middle of the 
century only taught, and the Free Trade statesmen only 
learnt, one -half of their lesson. They were so much taken up 
with the idea of removing the fiscal barriers between nations 
that they failed to follow up the other part of their own con- 
ception, the desirability of getting rid of bounties of every 
kind. M'Culloch and Nassau Senior, Cobden and Bright, 
realized clearly enough that the grant of money aid to a 

1 This hypothetical case is, we believe, not unlike the actual condition 
of the cotton manufacture in the United Kingdom at the present time, in 
spite of the absence of international uniformity. 



236 MODERN SOCIALISM 

particular industry out of the rates or taxes enabled that 
industry to secure more of the nation's brains and capital, and 
more of the world's trade, than was economically advan- 
tageous. They even understood that the use of unpaid slave 
labour constituted just such a bounty as a rate in aid of wages. 
But they never clearly recognized that the employment of 
children, the overwork of women, or the payment of wages 
insufficient for the maintenance of the operative in full indus- 
trial efficiency stood, economically, on the same footing. If 
the object of " Free Trade " is to promote such a distribution 
of capital, brains, and labour among countries and among 
industries, as will result in the greatest possible production, 
with the least expenditure of human efforts and sacrifices, the 
factory legislation of Robert Owen and Lord Shaftesbury 
formed as indispensable a part of the Free Trade movement 
as the tariff reforms of Cobden and Bright. " During that 
period," wrote the Duke of Argyll of the nineteenth century, 1 
" two great discoveries have been made in the Science of 
Government : the one is the immense advantage of abolishing 
restrictions upon Trade ; the other is the absolute necessity 
of imposing restrictions on labour. . . . And so the Factory 
Acts, instead of being excused as exceptional, and pleaded 
for as justified only under extraordinary conditions, ought 
to be recognized as in truth the first legislative recognition of 
a great Natural Law, quite as important as Freedom of Trade, 
and which, like this last, was yet destined to claim for itself 
wider and wider application." 

Seen in this light, the proposal for the systematic enforce- 
ment, throughout each country, of its own National Minimum 
of education, sanitation, leisure, and wages, becomes a neces- 
sary completion of the Free Trade policy. Only by enforcing 
such a minimum on all its industries can a nation prevent the 
evil expansion of its parasitic trades being enormously aggra- 
vated by its international trade. And there is no advantage in 
this National Minimum.being identical or uniform throughout 
1 Th: Reign of Law (London, 1867), pp. 367, 399. 



SIDNEY AND BEATRICE WEBB 237 

the world. Paradoxical as it may seem to the practical man, a "1 
country enforcing a relatively high National Minimum would 
not lose its export trade to other countries having lower con- 
ditions, any more,, indeed, than a country in which a high 
Standard of Life, spontaneously exists, loses its trade to others 
in which a standard is lower. If the relatively high National 
Minimum caused a proportionate increase in the productive 
efficiency in the community, it would obviously positively 
strengthen its command of the world market. But even if 
the level of the National Minimum were, by democratic 
pressure, forced up further or more rapidly than was com- 
pensated for by an equivalent increase in national efficiency, so 
that the expenses of production to the capitalist employer 
became actually higher than those in other countries, this 
would not stop (or even restrict the total of) our exports. 
" General low wages," emphatically declare the economists, 
"never caused any country to undersell its rivals, nor did 
general high wages ever hinder it from doing so." * So long 
as we continued to desire foreign products, and therefore to 
import them in undiminished quantity, enough exports would 
continue to be sent abroad to discharge our international 
indebtedness. We should, it is true, not get our tea and 
foodstuffs, or whatever else we imported, so cheaply as we 
now do ; the consumer of foreign goods would find, indeed, 
that these had risen in price, just as English goods had. If 
we ignore the intervention of currency, and imagine foreign 
trade to be actually conducted, as it is virtually, by a system 
of barter, we shall understand both this rise of price of foreign 
goods, and the continued export of English goods, even when 
they are all dearer than the corresponding foreign products. 
For the English importing firms, having somehow to discharge 
their international indebtedness, and finding no English products 
which they can export at a profit, will be driven to export some 
even at a loss a loss which, like the item of freight or any 

1 J. S. Mill, Principles of Political Economy, Book III. chap. xxv. 4, 
p. 414 of 1865 edition. 



2 3 3 MODERN SOCIALISM 

other expense of carrying on their business, they will add to 
the price charged to the consumer of foreign imports. They 
will, of course, select for export those English products on 
which the loss is least that is to say, those in which England 
stands at relatively the greatest advantage, or, what comes 
to the same thing, the least disadvantage. Therefore, if the 
rise in the expense of English production were uniform, not 
only the total, but also the distribution of our exports would 
remain unaffected. The foreign consumer, by reason of the 
cheapness of production of his own goods, will then be getting 
English-made goods at a lower price than would otherwise be 
the case it may be, even a lower price than the Englishman 
is buying them at in his own country just as the Englishman 
at the present time buys American products in London at the 
comparatively low level of English prices, and sometimes 
actually cheaper than they are sold at in New York. For 
this process of exporting at an apparent loss, as a set-off 
against a profitable import trade, actually takes place, now in 
one country, now in another. 1 It sometimes happens that the 
same firm of merchants both exports and imports : more 
usually, however, the compensatory process is performed 
through the banking-houses, and manifests itself in those 
fluctuations of the foreign exchanges, which, though clear 
enough to the eye of the practical financier and economist, 
shroud all the processes of international exchange from the 
ordinary man by a dense veil of paradox. 

The practical check to a rise in the National Minimum 
comes, indeed, not from the side of international trade, but, as 
we have already explained, from the home taxpayer and the 
home consumer. Every rise in the National Minimum not 
compensated for by some corresponding increase in the 
efficiency with which the national industry was carried on 

1 When, for instance, the export of gold is prohibited, or when all the 
gold has already been sent away ; or when, for any reason, less expensive 
ways of discharging a balance of indebtedness do not exist. See Goschen's 
Theory of the Foreign Exchanges > or Clare's A. B.C. of the Foreign Exchanges. 



SIDNEY AND BEATRICE WEBB 239 

would imply an increase in the number of the unemployable, 
and thus in the Poor Rate or other provision for their mainte- 
nance ; and every increase in the expenses of production would 
be resented as a rise in the price by the bulk of the popula- 
tion. The lowlier grades of labour, employing a majority of 
the citizens, would clearly benefit by the improvement which 
the rise would cause in their own conditions. Other grades 
of producers, including the brain- working directors of industry, 
would find their own " rent " of specialized or otherwise 
exceptional faculty undiminished, even if they had to pay away 
more of it in taxes and higher prices. The great and growing 
army of officials on fixed incomes would loudly complain of 
the increased cost of living, which would presently be met by 
a rise in salaries. But the real sufferers would be the rentier 
class, existing unproductively on their investments. These 
persons would be hit both ways : they would find themselves, 
by increased taxation, saddled with most of the cost of the un- 
employable, and by higher prices, charged with at least their 
share of the increase in the nation's wage-bill. Such a prac- 
tical diminution in the net income of the dividend-receiving 
classes would, from Ricardo down to Cairnes, have been sup- 
posed to correct itself by a falling off in their rate of saving, 
and therefore, as it was supposed, in the rate of accumulation 
of additional capital. This, as we have seen, can no longer be 
predicted, even if we cannot yet bring ourselves to believe, 
with Sir Josiah Child and Adam Smith, that the shrinking of 
incomes from investments would actually quicken production 
and stimulate increased accumulation. What it might con- 
ceivably do would be to drive the rentier class to live increas- 
ingly abroad, with indirect consequences which have to be 
considered. 

We have hitherto left on one side the possible migration of 
capital from a country, in which the National Minimum had 
been unduly raised, to others in which labour could be hired 
more cheaply. This is hindered, to an extent which we do 
not think is sufficiently appreciated, by the superior amenity 



240 MODERN SOCIALISM 

of English life to the able business man. So long as our 
captains of industry prefer to live in England, go abroad with 
reluctance even for high salaries, and return to their own 
country as soon as they possibly can, it will pay the owners of 
capital to employ it where this high business talent is found. 
The danger to English industrial supremacy would seem to us, 
therefore, to lie in any diminution of the attractiveness of life in 
England to the able brain-working Englishman. An increase in 
the taxation of this class, or a rise in the price of the commodities 
they consume, is not of great moment, provided that facilities 
exist for them to make adequate incomes ; and these rewards 
of exceptional talent are, it will be remembered, in no way 
diminished by the Device of the Common Rule. But any 
loss of public consideration, or any migration of their rentier 
friends or relations, might conceivably weaken their tie to 
England, and might, therefore, need to be counteracted by 
some increase in their amenities or rewards. 1 Our own opinion 
is that this increased amenity, and also this increased reward 
of exceptional ability, would actually be the result of a high 
National Minimum. It is difficult for the Englishman of to-day 
to form any adequate idea of how much pleasanter English life 
would be if we were, once for all, rid of the slum and sweating 
den, and no class of workers found itself condemned to grinding 
poverty; if science had so transformed our unhealthy trades 
that no section of the population suffered unnecessarily from 
accident or disease ; and if every grade of citizens was rapidly 
rising in health, intelligence, and character. 

It follows that each community is economically free, with- 
out fear of losing its foreign trade, to fix its own National 
Minimum, according to its own ideas of what is desirable, its 
own stage of industrial development, and its own customs of 
life. The course and extent of International trade if we 

1 It would be interesting to inquire how far the fatal " absenteeism " of 
Ireland's men of genius has been caused or increased by the reduction of 
Dublin from the position of a wealthy and intellectual capital to that of a 
second-rate provincial town. 



SIDNEY AND BEATRICE WEBB 241 

imagine all fiscal barriers to be removed, and all bounties 
to be prevented is, in fact, determined exclusively by the 
desires of the world of consumers, and the actual faculties and 
opportunities of the producers in the different countries ; not 
by the proportion in which each nation chooses to share its 
National Dividend between producers and property-owners. 
Each community may, therefore, work out its own salvation in 
the way it thinks best. The nation eager for progress, con- 
stantly raising its National Minimum, will increase in produc- 
tive efficiency, and steadily rise in health and wealth. But 
it will not thereby interfere with the course chosen by others. 
The country which honours Individual Bargaining may reject 
all regulation whatsoever, and let trade after trade become 
parasitic; but it will not, by its settling down into degradation, 
gain any aggregate increase in international trade, or really 
undermine its rivals. 1 Finally, the nation which prefers to 
be unprogressive, but which yet keeps all its industries self- 
supporting, may, if circumstances permit its stagnation, retain 
its customary organization, and yet continue to enjoy the same 
share in international commerce that it formerly possessed. 

1 Let us suppose, for instance, that the capitalists of the United States 
so far strengthen their position as to put down all combinations of the 
wage-earners, annul all attempts at factory legislation, and, in fact, prohibit 
every restriction on Individual Bargaining as a violation of the Constitution. 
The result would doubtless be a proletarian revolution. But assuming this 
not to occur, or to be suppressed, and the rule of the Trusts to be unchecked, 
we should expect to see the conditions of employment in each trade fall to 
subsistence level, and with the advance of population, stimulated by this 
hopeless poverty, even below the standard necessary for continued efficiency. 
The entire continent of America might thus become parasitic, and successive 
generations of capitalists, served by a hierarchy of brain-working agents, 
might use up for their profit successive generations of degenerated manual 
toilers, until these were reduced to the level of civilization of the French 
peasants described by La Bruyere. But the total international trade of 
America would not be thereby increased ; on the contrary, it would 
certainly be diminished as the faculties of the nation declined. 



XVIII 

THE ECONOMICS OF DIRECT EMPLOYMENT 
BY THE FABIAN SOCIETY 

This is Fabian Tract, No. 84, the basis of which was a paper 
read at the British Association's Oxford meeting, 1894, by Mr. 
Sidney Webb. It includes an account of the Fair Wages policy, 
which is possibly the greatest success achieved by the Fabian 
method. 

DURING the last twelve years there has gradually been 
developed, among the various Town and County Councils 
and other public authorities, a definite economic policy with 
regard to the employment of labour. This policy, initiated by 
the School Board for London in January, 1889,* has been 
adopted, to a greater or lesser degree, by several hundred 
local governing bodies throughout the United Kingdom. It 
has, perhaps, been most completely carried out by the London 
County Council, where it has been successfully maintained for 
over ten years, and where it has lately been endorsed and 
confirmed by a decisive majority at the election of 1898. 

THE LABOUR POLICY OF THE LONDON COUNTY COUNCIL. 

The Labour Policy of the London County Council has been 
intelligently criticized, from the point of view of economic 

1 The London School Board was, in January, 1889, the first public 
body to adopt the principle of insisting that not less than the recognized 
standard rates of wages should be paid. See The History of Trade 
Unionism, and also Industrial Democracy, by Sidney and Beatrice Webb, 

24Z 



THE FABIAN SOCIETY 243 

science, mainly under three heads. Instead of "buying its 
labour in the cheapest market," as it was termed, it has, from 
the first, striven to adopt as its standard, the trade-union rate 
of wages, and to assert a " moral minimum " of earnings below 
which it was inexpedient that any London citizen should be 
allowed to sink. Moreover, not content with proceeding on 
these lines as regards the workmen whom it directly employs, 
it has sought throughout to secure that all contractors execut- 
ing its work should adopt the same principle. Finally, it has 
endeavoured, wherever possible, to dispense with the middle- 
man entrepreneur^ and to substitute salaried supervision and 
management directly under public control, 



THE FAIR WAGES MOVEMENT. 

Let us take first what is known as the Fair Wages Move- 
ment. After prolonged discussions, repeated at intervals 
during nine years, it has become the settled policy, (a) to pay, 
in each trade, the recognized standard rate of wages, (b) to 
give no adult male workman less than 6d. per hour, and no 
adult woman less than i8s. per week. 1 Those unfamiliar with 
the actual practice of industrial life at first imagined that 
the trade-union rate of wages meant just whatever rate the 
trade-union might choose to claim. As a matter of fact, the 
trade-union rate of wages is, in every organized trade, a well- 
understood expression, denoting the actual rate which has 
been agreed to, more or less explicitly, by representative 
employers and the trade-union executives. What the Council 
has done has been merely to insert in its own standard list of 
wages the rate proved, on inquiry, to be actually recognized 
and adopted by the leading employers in the particular trade 

1 " The Standing Orders of the L.C.C.," containing the Fair Wages 
Clauses, is sold at is. by P. S. King & Son, Great Smith Street, West- 
minster. For other places see House of Commons Return, " Urban 
Sanitary Districts (Conditions of Contracts)," No. 47, Ilth February, 
1898 ; i\d. (P. S. King & Son.) 



244 MODERN SOCIALISM 

within the London district. In the whole of the building 
trades, for instance, which include seven-eighths of the work 
done for the Council, the trade-union rate of wages has been 
solemnly agreed to in a formal treaty between the London- 
Building Trades Federation and the London Master Builders 
Association. So far as the organized skilled trades are 
concerned, the Council has not attempted to do more than 
place itself on a line with the common average of decent 
employers. 

With regard to unskilled labour, the case is more difficult. 
Here, in most cases, no generally recognized trade-union rate 
exists. The Council has accordingly taken the position that 
it is undesirable, whatever the competition, that any of its 
employees should receive less than the minimum required 
for efficient and decent existence. Seeing that Mr. Charles 
Booth places the actual "poverty line" in London at regular 
earnings of 2is. per week, it cannot be said the Council's 
"moral minimum" of 2^s. for men and iSs. for women errs 
on the side of luxury or extravagance. But, unlike the 
Council's wage for skilled workmen, it is more than is actually 
paid by many conscientious employers ; and it is undoubtedly 
above the rate at which the Council could obtain such labourers, 
if it chose to disregard all other considerations. 

The labour policy of the London County Council, whether 
with regard to skilled or unskilled labour, may be explained as 
the deliberate choice of that form of competition which secures 
the greatest possible efficiency, as compared with the form 
which secures the greatest apparent cheapness. Public offices 
may be filled in one of two ways. We may, on the one hand, 
practically put the places up to auction, taking those candi- 
dates who offer to do the work for the lowest wage ; or, on the 
other hand, we may first fix the emoluments, and then pick the 
best of the candidates coming forward on those terms. When 
we want brain-workers of any kind, every one agrees that the 
latter policy is the only safe one. We do not appoint as a 
judge the lawyer who offers to take the place at the lowest 



THE FABIAN SOCIETY 245 

rate. No one would think of inviting competitive tenders 
from clergymen as to the price at which they would fill a 
vacant bishopric. And a Town or County Council which 
bought its engineer or its medical officer in the cheapest 
market would, by common consent, make a very bad bargain. 
In all these cases we have learnt, by long and painful expe- 
rience, that there is so much difference between competence 
and incompetence, that we do not dream of seeking to save 
money by taking the candidate who offers his services at the 
lowest rate. Unfortunately, many worthy people who realize 
this aspect of brainwork, because they belong themselves to 
the brainworking class, are unconscious that it applies no less 
forcibly to mechanical labour. They will pay any price for a 
good architect, but are apt to regard bricklayers and masons 
as all equally " common workmen." The consequence is that, 
owing to the extraordinary ignorance of the middle and upper 
classes about the actual life of the handicraft trades, it has 
gradually become accepted as good business that, though you 
must take all possible trouble in choosing your manager, it is 
safe and right to buy wage labour at the lowest market rates. 
But, as a matter of fact, there is as great a relative difference 
between one painter or plasterer and another, as there is 
between one architect or manager and another. If the 
pressure of competition is shifted from the plane of quality 
to the plane of cheapness, all economic experience tells us 
that the result is incompetency, scamped work, the steady 
demoralization of the craftsman, and all the degradation of 
sweating. When a man engages a coachman or a gardener he 
understands this well enough, and never for a moment thinks 
of hiring the cheapest who presents himself. Even the 
sharpest-pressed employer does not entrust expensive 
machinery to the mechanic who offers to take the least wages. 
The London County Council, realizing it more vividly than 
some bodies less in touch with the actual facts of industrial 
life, applies the principle all round. Whether the post to be 
filled be that of an architect or a carpenter, the wage to be 



246 MODERN SOCIALISM 

paid is first fixed at a rate sufficient to attract the best class of 
men in the particular occupation. Then the most competent 
candidate that can be found is chosen. Competition among 
the candidates works no less keenly than before; but 
it is competition tending not to reduce the price, thereby 
lowering the standard of life throughout the nation, but 
to enhance efficiency, and thus really to reduce the cost of 
production. 

With regard to the lowlier grades of labour a further con- 
sideration enters in. It may be economically permissible, 
under the present organization of industry, for a private 
employer to pay wages upon which, as he perfectly well 
knows, it is impossible for the worker to maintain himself or 
herself in efficiency. But when a Board of Poor Law 
Guardians finds itself rescuing from starvation, out of the 
poor rate, women actually employed by one of its own 
contractors to make up workhouse clothing, at wages in- 
sufficient to keep body and soul together, even the most 
rigorous economist would admit that something was wrong. 1 
The London County Council, responsible as it is for the 
health of the people of London, declines to use its position as 
an employer deliberately to degrade that health by paying 
wages obviously and flagrantly insufficient for maintenance, 
even if competition drives down wages to that pitch. The 
economic heretics, in fact, are not the Council, but those who, 
in flat defiance of Adam Smith, McCulloch, Mill, and Marshall, 
alike, persist in assuming that there is some obligatory " law " 
that the pressure of competition ought, without interference 
from man, to be allowed so to act as to degrade the standard 
of life of the whole community. 

1 The Chelsea Board of Guardians was, in 1894, paying its scrubbers 
is. 6d. a day, without food, which amounts to a weekly wage of 9.?. A 
day's illness is sufficient to force such a worker to seek relief from the 
rates, and the Board then finds itself rescuing from starvation its own 
underpaid workpeople. 



THE FABIAN SOCIETY 247 

TlIE MORALIZATION OF THE CONTRACTOR. 

Some critics, however, who do not object to the Council, 
like a prudent housekeeper or an experienced employer, fixing 
the wages of its servants at an adequate sum, demur to any 
interference with the freedom of contractors, and denounce as 
economically heretical the Council's standing order confining 
the Council's work to such firms as adopt the standard rate of 
wages. It is, say such critics, no concern of the Council how 
a contractor manages his business; and if he can get his 
workmen at less than the' ordinary price of the best men, so 
much the better for him, and, in the long run, for his customers. 
The very object of industrial competition, they would add, is to 
keep the cost of production down to the lowest possible point, 
and any interference with the contractor's freedom to do his 
business in his own way tends to increase that cost. 

It will, however, be obvious to the economist that these 
criticisms confuse cost of production with expenses of produc- 
tion. What the community has at heart is a reduction of the 
cost of production that is, of the efforts and sacrifices involved 
in getting the object desired. This is of no concern to the 
contractor. What he wants is to diminish the expenses of 
production to himself that is, the sum which he has to pay 
for materials and labour. This object he may effect in one of 
two ways. He may, by skilful management, ingenious inven- 
tion, or adroit manipulation of business, get the work accom- 
plished with less effort and sacrifice on the part of those 
concerned, allowing of a reduction of the out-of-pocket pay- 
ments by himself; or he may, on the other hand, without 
diminishing the effort and sacrifices, induce those concerned to 
accept a smaller remuneration for their labour. Either way 
will equally serve his profit, but either way will not equally 
serve the community. If the first case, a real economy in the 
cost of production has been effected, to the gain of all con- 
cerned. In the second case, no economy in the cost of pro- 
duction has taken place ; but the pressure of competition has 



248 MODERN SOCIALISM 

been used to depress the standard of life of some of the 
workers. The one result is a real and permanent advantage 
to the community ; the other is a serious economic calamity, 
bringing far-reaching secondary evils in its train. 

Now, many large fortunes have been made by contractors 
pursuing each of these methods, and the " good business man " 
doubtless resorts to both of them as opportunity serves. Un- 
fortunately it is much more difficult and toilsome to be per- 
petually making new inventions, devising fresh labour-saving 
expedients, or discovering unsuspected economies, than to pare 
down wages, even at the risk of producing a slight falling-off 
in quality, provided that the deterioration is not so gross as to 
cause the actual rejection of the work. It is so hard to spend 
laborious nights and days in improving processes. It is so 
easy to find workmen eager for a job at 10 per cent, below 
the standard rate. " Mankind," says Emerson, " is as lazy as 
it dares to be," and contractors are no exception. It is safe to 
say that the more you leave it open to a contractor to make a 
profit, by reducing the expenses of production, the less he will 
trouble about lowering the cost. So much is this the case 
that, under a prolonged rtgime of free and unrestricted com- 
petition, the very existence of the alternative has often been 
forgotten. " Profits," said one capitalist, " are the shavings of 
wages." 

It was in order to put a stop to the constant tendency of 
contractors to nibble at the current standard wages that the 
London County Council inserted its celebrated fair wages 
clauses. These clauses, it will be observed, leave open to con- 
tractors every chance of profit which comes from reduction of 
the cost of production. By concentrating the contractor's 
energy and attention on this point they presumably increase 
the fierceness of that part of the competitive struggle which 
promotes the public good. But, just as the Factory Acts, 
the Mines Regulation Acts, and the Education Acts, "rule 
out" of industrial competition the cheapness brought about by 
the overwork of women and children, or the neglect of sanitary 



THE FABIAN SOCIETY 249 

precautions, so the London County Council, representing the 
people of London, declines to take advantage of any cheapness 
that is got by merely beating down the standard of life of 
particular sections of the wage-earners. Here, the key-note of 
the Council's policy is, not the abolition of competition, but the 
shifting of its plane from mere cheapness to that of industrial 
efficiency. The speeding up of machinery, the better organi- 
zation of labour, the greater competency of manager, clerk, or 
craftsman, are all stimulated and encouraged by the deliberate 
closing up to the contractor of other means of making profit. 1 

And just as the Factory Acts have won their way to econo- 
mic approval, not merely on humanitarian grounds, but as 
positively conducive to industrial efficiency, so, too, it may 
confidently be predicted, will the now widely adopted fair 
wages clauses. 2 

MUNICIPAL INDUSTRY. 

We come to an altogether different range of criticism when 
we consider the Council's determination to dispense, wherever 
possible, with the contractor, and execute its works by engag- 
ing a staff of workmen under the supervision of its own salaried 
officers. This has been fiercely attacked as being palpably 
and obviously opposed to political economy and business 
experience. It is worth while to place on record the facts. 

Constructive work was not undertaken at first, but labour 

1 The economist will recall the analogous effect which labour legislation 
and strong trade unions have had in increasing the efficiency of the Lan- 
cashire cotton industry. Compare, too, Mr. Mather's testimony to the 
beneficent effect upon employers of trade-union action in the engineering 
trades (see Contemporary Review^ vol. Ixii., 1892, and S. and B. Webb's 
Industrial Democracy]. 

9 Many local governing bodies have adopted some kind of fair wages 
clause in their contracts. Particulars of regulations in 218 places are given 
in Parliamentary Return H. C. 47 of Feb. II, 1898, "Urban Sanitary 
Districts (Conditions of Contracts)," 2\d. Compare also the House of 
Commons' unanimous resolutions of Feb. 13, 1891, and March 6, 1893, 
imposing the principle for Government contracts. 



250 MODERN SOCIALISM 

was hired to clean the bridges 1 and to repair the Council 
offices, 2 at a considerable saving compared with contract prices. 
The first piece of building work was executed by the Main 
Drainage Committee at $$& below the lowest tender of 
^2188. But the case which finally convinced three out of 
every four members of the Council of the desirability of execu- 
ting their own works was the York Road Sewer. The engineer 
estimated the cost at ^7000, and tenders were invited in the 
usual manner. Only two were sent in, one for ;i 1,588, and 
the other for ^11,608. The Council determined to do the 
work itself, with the result that a net saving of ^"4477 was 
made. 3 

This remarkable result naturally created a sensation in the 
contracting world, and attempts were made to impugn the 
engineer's figures. In his crushing reply he pointed out that 
the contractors had reckoned out their tenders at absurdly high 
prices in nearly^ every detail, charging, for instance, 6oj. and 
705-. respectively per cubic yard of brickwork and cement, 
whereas the work was done at 39^. It is clear from the other 
particulars given, and from facts notorious at the time, that 
an agreement had been come to among contractors not to 
compete with one another for this job, in order to induce the 
Council to abandon its fair wages clause. The Council 
preferred to abandon the contractor. 4 

The outcome was the establishment, in the spring of 1893, 
of a Works Department to execute works required by the other 
committees in precisely the same manner as a contractor. The 
Works Department stands to the other committees of the 
Council exactly in the same relation as if it were an indepen- 
dent contractor. When a committee has any work to execute, 
the Council's architect and engineer prepare the plans and 
make an estimate, without any reference to the Works 

1 Minutes, October 18, 1892, pp. 900, 901 

2 Minutes, June 27, 1893, p. 683. 
* Minutes, October 17, 1893. 

1 See the fuller particulars in Minutes of October 31, 1893, pp. 1063-5. 



THE FABIAN SOCIETY 251 

Department. Then the Council decides whether the work shall 
be done with or without a contractor. Sometimes it decides to 
put the work up to tender, a course which enables it to see 
whether the estimates of the architect and engineer are trust- 
worthy guides. The Works Department may say that it is 
not prepared to do the work, either because it is not satisfied 
with the specifications and estimates, or because it has no con- 
venience for doing work at that particular site, or of that 
particular kind. In that case the job is put up to tender and 
done by a contractor. 

The accounts of the Works Department are kept distinct 
from those of other departments of the Council. The Finance 
Committee sees that it is debited with the interest and sinking 
fund on all the capital it uses ; that full allowance is made to 
cover depreciation and renewals that a complete stocktaking 
is regularly carried out by independent officers ; and that all 
outgoings and maintenance charges are properly spread over 
the various works done. The accounts are elaborately checked 
by the Council's Controller, as well as by the Local Govern- 
ment Board's Auditor. 

The Works Department has now been at work for over six 
years, during which it has executed over ^1,000,000 worth of 
work of the most varied character sewer construction, the 
making of roads, building houses of every kind, erecting 
bridges, carrying out of every sort of repairing and decorating 
jobs, and an innumerable array of miscellaneous operations. 
Whether, and to what extent, this work has been done cheaper 
than it would have been done by contractors is a matter of hot 
controversy. 1 The Progressives assert that, even with all the 
disadvantages of starting a new business, and struggling with 
"wreckers" inside the Council, the whole ;i, 000,000 worth 
of work has, taken as a whole, and including the "jobbing 

1 See The Truth about the Works Department of the London County 
Council. (London Reform Union.) The year ended September 30, 1899, 
shows a "profit" of ^10,365 on completed works estimated at 79,270 
(Minutes, Nov. 1899). 



2$2 MODERN SOCIALISM 

work," been executed at just about what the contractors would 
have charged. The Moderates declare that it has cost more ; 
but even they do not put the excess at more than about 5 per 
cent, on the whole of the architect's estimate an excess which 
any one accustomed to builders' bills will think amazingly low. 
But no sound judgment on the policy of dispensing with the 
contractor can be formed on statistics of this kind, extending 
over so brief a period. We must take a wider sweep, and see 
what inferences can be drawn from other experience. 

It is usually assumed by the Council's critics, that its policy 
of eliminating the contractor is an unparalleled innovation, 
unknown outside London. A little knowledge of the action of 
local governing bodies elsewhere would prevent this mistake. 
It is, of course, unnecessary to remind the reader that 
Birmingham, 1 dominated by the strictest sect of the Individual- 
ists, has municipalized its water and its gas, which are in 
London still left to private enterprise. What is not so well 
known is that the Town Council dispenses with the contractor 
whenever it can, each committee getting much of its own work 
done by its own directly employed staff. The Public Works 
Committee, which looks after the thoroughfares, and the 
Health Committee, which is responsible for sanitation, have 
not only entirely eliminated the contractor from the cleaning 
and repairing of the streets and the removal of refuse, but even 
from the laying down of granite paving and flagging, once a 
most profitable item of his business. The Gas Committee is 
not content with employing hundreds of men to make gas, but 
also keeps its own staff of carpenters, bricklayers, blacksmiths, 
tinmen, painters, fitters, etc., to execute its numerous works. 
The Improvements Committee, like the Estates Committee, has 
its own carpenters, fitters, bricklayers, paperhangers, plasterers, 
and zincworkers, whilst the Water Committee, besides a 
regular staff of mechanics of all kinds, is now actually engaged 

1 Return of Hours of Labour, Wages, etc. (Appendix to Birmingham 
General Purposes Committee's Report, July 25, 1893.) See Appendix II., 
p. 18. 



THE FABIAN SOCIETY 253 

in constructing several huge dams and reservoirs near Rhayader, 
two tunnels and various water towers and syphons, together 
with workmen's dwellings to accommodate a thousand people, 
stables, stores, workshops, a public hall and recreation room, a 
school, two hospitals, and a public-house all without the 
intervention of a contractor. The construction of all the build- 
ings on the works is being carried out by the workmen of 
the Corporation, under the superintendence of the resident 
engineer and his assistant. The timber and other material is 
being purchased by tender. "This method/' reports the 
Water Committee, " of using material supplied by contract, and 
constructing by the direct employees of the Corporation, the 
Committee consider, under the circumstances of the case, to be 
the most economical, as well as calculated to secure the best 
results." But this is not all. The Water Committee, finding 
that the village would have beer, has decided also in this 
matter to dispense with any entrepreneur, and has " resolved 
that a canteen shall be established in the village," out of the 
capital of the Birmingham citizens, and "that the person 
managing it shall have no interest whatever in the quantity 
sold." l 

And if we turn to Liverpool we learn that " almost all the 
city engineer's work is done by men directly employed by the 
Corporation. . . . The construction of sewers is now done 
entirely by the Corporation themselves. . . . They had such a 
cruel experience of doing the work of sewering by contractors 
that they have given it up." 3 It appears that in the old days, 
when the contractors agreed and charged for two courses of 
brickwork, no amount of inspection sufficed to prevent them 
putting in one only. " What happened was this : that whenever 
the Inspector came round, or the Clerk of Works, to watch 
the contractors, they found the two rings of brickwork going 

1 Report of the Birmingham Water Committee, presented February 6, 
1894. 

* Evidence of the Deputy Town Clerk of Liverpool before the Unifi- 
cation of London Commission, p. 328 of C 7493~I 



254 MODERN SOCIALISM 

on very well; as soon as the Inspector went away . . . the 
second ring of brickwork was left out . . . and so the sewer 
got weak. . . . You could trace the visits of the Inspector by 
the double rings " which were found here and there at intervals 
when the sewers were subsequently uncovered for repairs. 1 

This evidence from Liverpool is especially interesting in 
connection with what has recently been discovered at Man- 
chester. The auditor's report, published in 1896, exposes 
a precisely similar fraud in connection with the thirty-five miles 
of new sewers now under construction. This work was let to 
thirty-four different contractors, who had already received 
over ;6oo,ooo for their work. The new city surveyor, 
finding that the work had been scamped, had "street after 
street taken up at great expense, and such an exposure was 
made of fraud and deceit as I," writes the auditor, "have 
never before seen. The men who built these sewers in 
a tunnel never dreamed that their rascality would be dis- 
covered." The chief method adopted was, as at Liverpool, 
leaving out one ring of brickwork, except when the Corporation 
Inspector was signalled as being about to descend the shaft. 
Then the workmen hastily put on a second row of bricks at 
that spot The frequency of the Inspector's visits to each bit 
of work were found marked by this extra ring of bricks, here 
and there, instead of along the whole length of -the sewer. 3 

Nor are these Councils in any way exceptional in their 
steady progress towards the elimination of the contractor. In 
the early days of municipal activity practically everything was 
let out to a contractor. Nowadays every large municipality, 
even if it does not possess any separate Works Department, 
has a staff of mechanics and artisans in regular municipal 
employment, and every day executes many important works 
and services by its own workmen, which were formerly let by 
tender to the lowest bidder. 

1 Evidence of the Deputy Town Clerk of Liverpool before the Unifi- 
cation of London Commission, p. 328. 

2 Report of the Citizens' Auditor of the City of Manchester for 1895. 



THE FABIAN SOCIETY 255 

Nor is it in municipal boroughs alone that we see the 
change in policy. Nothing was more common a few years 
ago than for highway authorities to get their roads kept in 
order by contractors. An interesting return obtained in 1892 
by the County Surveyors' Society shows that this practice has 
been almost entirely abandoned in favour of direct employ- 
ment of labour by the county surveyor. Only in one or two 
counties out of thirty-five furnishing particulars does the old 
custom linger. The county surveyor for Gloucestershire 
indignantly denied an allegation that he favoured the contract 
system. " It does not commend itself to me in any way," he 
writes, "and encourages a low form of sweating. My own 
experience of road-contracting is that it does very well for five 
years, then the roads go to pieces, and you have to spend all 
your previous savings to put them to rights." l 

When we thus find even the County Councils in rural districts 
giving up the contractor, it ceases to be surprising that the 
Town Council of Manchester, in the city of Cob den and Bright, 
now manufactures its own bass-brooms, or even that the ultra- 
conservative Commissioners of Sewers of the City of London, 
actually set the County Council an example by manufacturing 
their own carts. 2 The superiority of direct municipal employ- 
ment, under salaried supervision, to the system of letting out 
works to contractors has, in fact, been slowly borne in on the 
best municipal authorities all over the country by their own 
administrative experience, quite irrespective of social or 
political theories. 

INTEGRATION OF PROCESSES. 

Business men, not so very long ago, would have argued 
that this policy of including all kinds of industrial processes 

1 Particulars of Management cf Alain Roads in England and Wales, a 
report compiled for the County Surveyors' Society, by Mr. Heslop, County 
Surveyor for Norfolk. See Builder^ March 19 and 26, 1892. 

2 Statement of the Commissioners of Sewers, presented to the Royal 
Commission on London Unification. 



256 MODERN SOCIALISM 

under one administration was contrary to the lessons of 
business experience. The last generation of captains of 
industry believed in each undertaking sticking closely to its 
own special trade, and contracting with similarly specialized 
undertakings for all subsidiary parts of the business. " Never 
make anything yourself that you can buy elsewhere" was a 
common industrial maxim. The last thirty years have changed 
it to " Never buy from any one else what you can manufacture 
for yourself." 

The most familiar instance of this revolution of policy is 
seen in the English railway companies. Once a railway com- 
pany was an association for getting a railway made, and running 
trains on it. An able essay written by Mr. Herbert Spencer 
forty years ago, protested strongly against any extension of 
a railway company's scope. Nowadays an up-to-date railway 
company runs docks, canals, ferries, steamships, and hotels 
of its own, and carries on, besides, innumerable subsidiary 
businesses, and manufactures every conceivable kind of article, 
entirely by its own operatives, working under its own salaried 
staff. The directors of the London and North- Western Railway 
Company, for instance, with a comprehensiveness that would 
have staggered George Stephenson, lay it down as an axiom 
that the company " should be dependent on the outside world 
for as few as possible of the necessaries of life." The manager 
at the company's great workshop-town of Crewe, " can think of 
nothing of importance that is imported in a manufactured state, 
except copper tubes for locomotive boilers." "As we pass from 
shop to shop, here may be seen a steel canal boat in process of 
construction (for the company, it must be remembered, is a 
great canal proprietor) ; there, a lattice-work bridge is being 
fitted together. Further on, hydraulic pumps, cranes, and 
capstans crowd a huge shed. In another place, chains of all 
sorts and sizes, from cables to harness traces, are being forged 
by the ton ; close by, coal-scuttles and lamps are being turned 
out by the hundred. In all the works there is no stranger 
sight than a corner in the carpenters' shop, where two men are 



THE FABIAN SOCIETY 257 

constantly employed making artificial limbs. Some two years 
back (that is, about 1885) the company embarked on this 
branch of manufacture, and undertook to supply legs and 
arms of the most finished workmanship to any man who lost 
his own in their service." l 

Nothing indeed is too small or too great for the North- 
Western to manufacture for itself. Crewe turns out a new 
locomotive engine every five days, and you may watch the 
company's own rails being rolled in its own steel works. At 
Wolverton, Mr. Acworth recounts how he " came upon a man 
engaged in etching designs upon the plates of ground glass 
that were to form the windows of lavatory compartments, and 
was told that the company had recently found that it could 
do this work for itself at half the price it had formerly paid n 
(pp. 60, 61). Since 1881 the North-Western has been steadily 
eliminating the privately owned waggon. For over twenty 
years the companies have managed their own collection and 
delivery business. Nearly every company, too, now builds its 
own carriages. The Midland Railway prints its own tickets ; 
whilst the Great Eastern goes a step further, and executes 
in its Stratford works nearly the whole of its own printing, 
including its gorgeous coloured posters and pictorial advertise- 
ments. "In the printing works the company keeps about no 
persons constantly employed, and is understood to save a good 
deal of money by doing so." 2 

But the Midland has tried another experiment. At the 
great Trent stores are between three and four hundred 
thousand empty corn sacks, which the company furnishes 
for the conveyance of the corn from the farmer to the 
miller. Here, too, the contractor formerly existed and made 
a profit, until, a few years ago, the business was undertaken by 
the company itself. 

In every branch of railway management, in short, the 

1 The Railways of England , by \V. M. Acworth. London: 1889, 

P- 59. 

* Ibid t p. 416, 

I 



258 MODERN SOCIALISM 

elimination of the independent entrepreneur or contractor is 
being rapidly effected. It was impossible that this example, 
set by undertakings in many respects analogous to municipal 
departments, should have no influence on the business men 
who rule our Town Councils. 

But although railway directors cannot be supposed to have 
been bitten by the tarantula of Collectivism, every one will not 
be convinced by their remarkable change of policy. They 
resemble the members of a Town Council in not working for 
their own personal profit, and may, it is urged, therefore be 
indifferent whether their ambitious excursions into manu- 
facturing industry actually pay their way. It is, therefore, 
interesting to find exactly the same revolution of business 
policy in large private undertakings. No better instance 
could be adduced than the history of a certain world-renowned 
firm of shipbuilders, whose rapid and continued expansion is 
one of the marvels of modern industry. 

Twenty years ago this firm constructed in their own yard 
little more than the hulls of the vessels, contracting for all the 
thousand and one articles of equipment with numerous other 
manufacturing firms which specialized in these directions. 
Nowadays, this same shipbuilding firm manufactures every 
one of these articles from triple-expansion engines down to 
the brass handles of the cabin lockers in its own works; 
and turns out its vessels from keel to topmast entirely of its 
own construction. Instead of employing only shipwrights 
and platers, that firm now engages men of several hundred 
separate trades, who work under the salaried management of 
different heads of departments. 

The following letter gives some of the dates and particulars 
of this industrial evolution : 

LETTER FROM AN EMINENT SHIPBUILDING FIRM AS TO DATES 
OF PROGRESSIVE ABSORPTION OF SUBSIDIARY PROCESSES. 

I have yours of nth inst., and have much pleasure in giving 
you the information you ask for respecting certain subsidiary work 



THE FABIAN SOCIETY 259 

previously done for us by sub-contractors but now carried out within 
our own works. 

In 1879 we began to rig the ships built by us. 

In the same year we began to build lifeboats. 

In 1880 we commenced plumbing work on board our ships, and 
to make our own sails. 

In 1 88 1 we opened an upholstery department to carry out that 
branch of work ourselves. 

In 1882 we opened an electric light department. 

It was in 1880 that we started our engine works, all the engines 
for vessels constructed by us up till then having been made in 
outside engine works. .And" even after we opened the engine works 
certain subsidiary machinery was obtained from outside which we 
now construct ourselves. 

For instance, in 1885, we first built crank shafts for main engines. 
In 1887 we began to manufacture manganese bronze propeller 
blades. In 1890 we began to make circulating pumps and engines, 
duplex pumps, steam steering engines, and brass sidelights for 
ships, and in the same year our smith work gradually merged into 
general forge work. 

The history of great engineering establishments shows the 
same tendency. The progress of the largest firm in the United 
Kingdom shows how, during the present generation, business 
has been added to business, until the firm has become one of 
the largest in the world, mining its own ore, making its own 
pig-iron, smelting its own steel, building its own ships, erecting 
its own engines, constructing its own tools, and executing 
innumerable subsidiary works in every direction. 

And, turning to quite another industry, we may cite the 
experience of a Birmingham manufacturer of metal goods, 
whose business has distanced all his rivals, and is now the 
largest and most prosperous in the trade. Thirty years ago 
he was completely under the dominion of the then prevalent 
idea of specialization. Everything required in his business 
which did not come strictly within the limited sphere of his 
own specialties he obtained by contract from other firms. 
Gradually his ideas changed, more and more of the subsidiary 
work was done in his own factory. He began to make his own 



260 MODERN SOCIALISM 

tools and machines. He commenced to repair, and then to 
construct his own engines. When additions to his works were 
required, he picked his own clerk of the works, bought his own 
bricks, and engaged his own artisans. Year by year he has 
found himself becoming less and less dependent on outside 
contractors, until the other day he started making in his own 
essentially metal factory even the wooden hogsheads and paper 
boxes in which his goods were packed. And he himself 
attributes the continued profitableness of his business, and 
its very rapid expansion during times when his competitors 
have often been working at a loss, mainly to this progressive 
elimination of the contractor and subsidiary entrepreneur. 
The following memorandum describes these changes in his 
business. 

MEMORANDUM BY A HARDWARE MANUFACTURER, DESCRIBING 
THE SUBSIDIARY OPERATIONS NOW UNDERTAKEN BY HIS 
FIRM. 

I find that some time at the latter end of 1870 we first began to 
manufacture goods that we had previously bought from other 
manufacturers. These goods were chiefly unfinished work that 
was required to complete the various articles that we sold. In 
some cases I made the change because I thought I could make a 
better article, and possibly a cheaper one. But the important 
advantage was in obtaining quick deliveries, and, therefore, prompt 
execution of orders. Since that date we have bought less and less 
outside, and at the present time we make almost everything that we 
require. 

About 1868 we began to do all our own repairs to machinery, 
plant, and buildings, and employed carpenters, fitters, machinemen, 
bricklayers, slaters, and painters. 

In 1879 we began to make and design machinery that we 
required, and to erect new buildings. For some eight years earlier 
than this I had designed all machinery, and had it made either in 
Birmingham or Manchester. This alteration was made chiefly 
because the machines were special, and I did not want them used 
by competitors in my trade. 

In 1884 we built large carpenters' fitting and erecting shops, to 



THE FABIAN SOCIETY 261 

enable Us to equip ourselves a large factory we were then putting 
up. These shops employed some 100 hands, who for the last ten 
years have been fully employed. 

In 1886 we began to make all the hogsheads (used for packing), 
packing cases, paper boxes, and everything that is required for the 
delivery of goods to our customers. We even make what is called 
wood wool, a substitute for straw. This department is a very large 
one, and uses up small forests of timber. This development has 
greatly facilitated the quick delivery of our goods, and has prevented 

a great waste caused by breakage in transit. 
s 

Space forbids any further multiplication of instances, or we 
might recount how one of the leading London publishers has 
lately become his own bookbinder, whilst another well-known 
firm combines in a single undertaking every stage of book- 
production, from the hiring of the author at fixed wages down 
to the sale of the volume by travelling pedlars. Or we might 
cite the colossal manufacturer of boots, buying his own hides 
in America, or his own gutta-percha in Borneo, and vending 
his wares, on the other hand, in his own retail shops all over 
the kingdom. 

Economic criticism of the London County Council has 
perhaps suffered by the fact that this integration of processes, or 
union, under a single management, of many separate businesses, 
has hitherto scarcely attracted economic attention. It is, of 
course, by no means the same as the oft-described elimination 
of the small business in competition with the large. The 
tendency, in fact, is frequently the other way a large spe- 
cialized business becomes superseded because its customers 
begin to do the work for themselves, each of them in a much 
smaller way than the single separate factory. Thus an old- 
established firm of " finishers " of certain textile manufactures 
have described how, during the past thirty years, they have 
one by one lost their best customers, not to any rivals in the 
"finishing" trade, but because the manufacturers were steadily 
tending to do their own " finishing." The essential feature of 
the change is the substitution of salaried work and management 



262 MODERN SOCIALISM 

for the entrepreneur labouring for his own profit. Business 
men have apparently discovered, contrary to ordinary economic 
opinion, that the economically most advantageous form of 
industrial organization is that in which the stimulus and temp- 
tation of profit is confined to as few of the actual workers as 
possible. So far is it, indeed, from being true that the hope 
of profit-making is the best or the chief stimulus to industrial 
efficiency that, from the mediaeval master craftsman down 
to the modern captain of industry, the proportion of the 
population who work for profit has been steadily diminish- 
ing. The remarkable growth in the numbers of men 
directly employed by municipalities and other public bodies 
is, in fact, paralleled by an exactly similar growth in the 
numbers of men directly employed at salaries and wages by 
private establishments. The elimination of the contractor 
or subsidiary entrepreneur is the dominant fact in modern 
industry. 

It is also to be noticed that the tendency is to shift the 
direction of industry from the producer to the consumer. The 
manufacturer whose business requires a steady supply of raw 
material, particular kinds of tools, engines and buildings 
adapted to his processes, or packages ready at the very moment 
his wares are finished, finds that it is more convenient, less 
liable to mistake or delay, and, in the truest sense, more 
economical for him, as the consumer, to obtain all these 
things by his own directly employed staff, than to rely upon 
the competition of producing entrepreneurs of specialized firms. 
And thus, as the manufacturer absorbs the separate producers 
of the wares he consumes, he must not be surprised when the 
public, the ultimate consumers of the 'wares he produces, 
themselves apply the lesson, and, through their elected repre- 
sentatives, finally absorb him. 1 



1 Compare the steady expansion of co-operation by associations of con- 
sumers see The Co-operative Movement in Great Britain. By Beatrice 
Potter (London, 1891). The substitution, as the director of industry, of 



THE FABIAN SOCIETY 263 

Why is the elimination of the subsidiary entrepreneur more 
practical now than it was in the last generation? It would 
take too long to examine the fundamental causes and con- 
ditions of this change in industrial organization. Most changes 
in social structure depend, in the long run, upon individual 
character ; possibly there has been a growth in the number of 
men who can be trusted to work efficiently and honestly as 
salaried managers instead of for their own personal profit. 
Possibly, too, as industrial organization becomes more complex, 
the advantage to the consumer in directly controlling the pro- 
duction of every article he requires, becomes more apparent. 
All improvements in social organization, too steam, telegraph, 
the free use of the printing-press, and now the telephone 
facilitate the massing of workmen under single generals of 
industry, able efficiently to control larger and more heteroge- 
neous and more complex industrial armies than could be 
managed by the captains of the past generation. Finally, as 
regards the substitution of the collective for the individual 
management of industry, it is evident that this will have been 
rendered increasingly practicable by the perfecting of demo- 
cratic organization. 

All these and other influences are but fragmentary sugges- 
tions towards the explanation of a change in industry of which 
the policy of public authorities in getting rid of the contractor 
is but one out of many manifestations. Formerly the best 
business management was that which itself managed least. 
Nowadays the best business management is that which can 

the consumer for the producer usually implies a clear economic gain in 
saving one of the processes of checking or examining. Mr. Herbert 
Spencer has himself described how the Admiralty was driven to set up its 
own flour-mills, because it cost too much to maintain the necessary scrutiny 
of every sack of flour delivered by the contractors. The London County 
Council found that it involved no more of the time and attention of their 
architect and engineer actually to supervise work done by the Council's 
own foreman and mechanics than to keep the necessary close watch upon 
the contractor and his manager, who were anxious, not to make their men 
build well, but only quickly. 



264 MODERN SOCIALISM 

safely and efficiently administer most. The integration of 
productive processes under direct control of the consumers 
may or may not be economic heresy ; the business history of 
England for the past thirty years indicates that it is industrial 
orthodoxy. 



XIX 

MUNICIPAL SOCIALISM 

. 

BY THE RIGHT HON. JOHN BURNS, M,P. 

The following letter was written for the purposes of an ephemeral 
controversy ; but beyond its ephemeral references thereto, it contains 
a singularly strong presentation of the Socialistic view of citizenship, 
which seems the vitally Socialistic element in the new phases of 
English municipal life. 

John Burns (born 1858) worked as a boy in a candle factory, then 
as a rivet-boy, and finally was apprenticed as an engineer. He 
worked twelve months on the Niger, and in 1878 toured Europe ; 
about 1880 the centre of his political work became Battersea. He 
was early a member of the Social Democratic Federation ; in 1885 he 
contested West Nottingham for it ; and in 1886 was twice prosecuted 
for the "West End Riot" and for the " Bloody Sunday" episode 
in Trafalgar Square. He left the Social Democratic Federation ; but 
in 1889 conducted a great agitation in connection with the London 
Dock strike. Battersea returned him in 1889 to the London County 
Council, and in 1892 to the House of Commons ; and after 1895 he 
drew closer to the Liberal party. He was unfriendly to the growth 
of the independent Labour Representation Committee; and in 
December, 1905, entered the Liberal Cabinet as President of the 
Local Government Board. His policy at the Local Government 
Board has been recognized by friends and foes alike as in the main 
decidedly anti- Socialistic. 

To THE EDITOR OF "THE TIMES." 

SIR, When a great newspaper arraigns the best, the most 
ancient, and the most remunerative form of British institutions, 
it should at least undertake that task with a sense of fitness, 
accuracy, fairness, and proportion. 

265 S 



266 MODERN SOCIALISM 

In its articles on Municipal Socialism the Times has dis- 
played none of the qualities which, properly applied, would have 
checked occasional abuse in local life, restrained raw haste in 
municipal experiment, stimulated the best men of all classes 
to give increasingly their unpaid services to improve their 
towns, beautify their cities, and ameliorate by civic means the 
communal lot of their poorer neighbours. On the contrary, 
out of the welter of irrelevancy, pettiness, and prejudiced 
support of vested interests which these articles disclose, there 
is nothing to elevate an indispensable phase of public life, 
reform its minority of erring councillors, instruct the rate- 
payers, or inspire its capable municipal civil service. If the 
allegations made in " Municipal Socialism " were a true reflex 
of civic life in Britain, if " this is the government of Britain's 
Isle," then Britain is undone. If popular representation, 
Labour, Socialism, and municipal workmen were not capable 
of better conduct than the Times imputes, Democracy is a stilted 
make-believe, popular administration a sham, and municipal 
service is but a pretext for patronage, corruption, gluttony, 
and vanity. Fortunately for all, these allegations are generally 
untrue ; municipal life in Britain is much purer than the Times 
alleges, and if its efficiency is not yet ideal it still is better than 
private enterprise and the contract system, which it is rapidly 
supplanting by its innate superiority, and is still the constant 
envy of all the foreign countries who sedulously copy what the 
Times so much condemns. 

That there are a few failures, that some experiments have 
not achieved financial success not always the best criterion 
in human affairs may be true ; that here and there the 
transient blunders of undisciplined zealots are caused by lack 
of business capacity, only proves that the sphere of municipal 
activity is no more infallible than is that of Parliament itself, 
and every human institution, especially criticism, and even 
the Times. As for personal corruption, there is little, if any, 
alleged, and less is proved. That there is too much feasting 
and journeying for insufficient reason by some councillors at 



JOHN BURNS 267 

the public expense but in the public interest is true, but not 
new ; but this is confined to a few men in few places, and this 
folly is, fortunately, diminishing. Curiously, there is less of 
this vulgar conduct amongst Labour councillors than other 
classes. 

But even in this respect the most flagrant sinner is the 
City of London Corporation, against which, so far, the Times 
has failed to say a single word, notwithstanding that its official, 
i.e. public, gluttony is as notorious as it is costly, and if the 
character of the personnel' of Labour councillors is to be con- 
sidered, and where defective properly condemned, it must not 
be forgotten that several of the Corporation members and some 
of its Lord Mayors have been censured by the Judiciary for 
private trafficking and public nepotism, a vice relatively unknown 
amongst the Municipal Socialists. 

The authors of the articles are directing almost solely their 
attacks on poor men, on Labour parties, and attribute to new 
views and popular principles errors and mistakes that 20 years 
ago would have been unnoticed under the old regime of Tory 
aldermen, jerry-building domination, company wire-pulling, and 
reactionary rule. 

The fierce light of criticism is to beat only upon the West 
Ham labourer, the Battersea bricklayer, and the Wolverhampton 
engineer, whose entry into public office is due too often to 
the abdication of municipal service by men of " superior " (?) 
classes and greater business knowledge for the leisure that 
rusts, the pleasures that defile, the search for money that rarely 
exalts. 

Worse even than that, the Times practically lays it down 
that richness of personal character and wealth of public spirit 
are incompatible with slender means a fallacy that is refuted 
by the degradations of public life in South Africa and America 
almost exclusively by rich men. 

And because some poor Labour councillors have attempted 
too much in a short time, and in the face of unscrupulous 
opposition, often by officials, always by the publicans, house 



268 MODERN SOCIALISM 

agents, slum owners, food adulterators, and others, who make 
up the ratepayers' alliances and are the nucleus of anti-pro- 
gressive municipal life then they are to be pilloried on small 
errors for great crimes. 

The authors of the articles seek, as in their Crisis in 
British Industry less to reform what exists, than to destroy 
popular effort either in industrial organization or municipal 
life, and in this they will inevitably fail. I suspect that their 
real and greater object is to divert public attention from the 
blunders of the governing caste at home and abroad, and so 
divert criticism and punishment from their political allies, so 
that the South African blunder can be covered up by the 
" horrible doings of the West Ham Socialists " or " the awful 
crimes of the Battersea Labour League" in starting a self- 
supporting club and gymnasium for the diversion of potential 
hooligans into comely youths and decent citizens. 

The pitiably sordid defence of the railway companies 
against paying their proper share of local burdens discloses 
the class bias of the attack on Municipal Socialism. These 
increased rates in nearly every case have been caused through 
the lack of foresight by the companies themselves, whose 
blunders in approaches, railway arches, and other conveniences 
have been a curse to many localities, some of which in London, 
particularly Battersea, have been heavily burdened in con- 
sequence. 

The gross misrepresentation of municipal electric lighting, 
gas, water, and tramway ownership, when one year's figures 
are taken as a sample, stamps the authors as mere fuglemen of 
monopoly, the mouthpiece of trust and company rule. What 
is more, it proves their ignorance of the subjects of which they 
try to treat. A casual reading only of the technical papers 
like the Electrical Times or Municipal Journal would demon- 
strate that the municipalities generally, as compared with 
companies, sell cheaper, generate cheaper, for kilowatt of plant 
have less capital, serve the public better, and all the time are 
piling up a public asset which is not only good Socialism, but 



JOHN BURNS 269 

first-rate business for the ratepayers, and ultimate wealth for 
the community. 

The answer to all their charges against municipal trading, 
its costs and results , is best given in the words of Mr. Maltbie, 
in 1900, after an inquiry of great care and exhaustiveness into 
municipal gasworks, as compared with company exploitation : 

" Summarizing the results of municipal ownership as com- 
pared with private operation under public control, it is to be 
said that under the former system, prices for gas, meters, and 
fittings are lower ; that the quality of gas is better, that it is 
much more extensively us'ed, that wages are higher, that the 
treatment of labourers is better, that profits are nearly as large, 
that works are not as highly capitalized, that sinking funds are 
adequate, that productivity per unit of raw material is almost 
as great, and that the management is fully as progressive ; all 
in all, municipal operation has been more successful than 
private operation." 

Practically the same, or better, can be said of the 930 
authorities who supply water, the 240 owning gasworks, the 
100 owning tramways, and the 180 supplying electricity. Cer- 
tainly tramways more than justify expectations from all points 
of view, especially that of housing. 

Electric light, measured by the standard of cost, service, 
price, and regularity, tells the same tale, as a perusal of the 
electric manuals will prove. Markets do the same ; and 
measured by quality of work, at less or the same price as 
contract, direct employment in public building operations 
comes out well. The financial aspect and monetary success 
of the whole ramifications of municipal trading is proved con- 
clusively by Sir Henry Fowler's return made in 1899. This 
official report proved that of .88,379,931 of capital invested 
in waterworks, gasworks, tramways, electric lighting, markets, 
baths, cemeteries, dwellings, piers, and miscellaneous, there 
was a net profit of ^3,613,668. This business-like result 
could not be secured if labour-loafing and municipal malinger- 
ing prevailed to the extent alleged by the Times articles, 



2/o MODERN SOCIALISM 

Similar results are shown in Reports 343 and 347, 1901, 
and 1899 for Scotland. Apart from these satisfactory results, 
the capacity and adaptability of municipalities to manage well 
is undoubted. The Glasgow tramways have run off a rival 
parallel steamboat service, and actually caused a great Scotch 
railway to abandon its dearer and slower suburban services 
because the directors thereof have given to political lobbying 
and extraneous work what should have been devoted to better 
management for the public, and dividends for their share- 
holders. 

Truly the directors, when they see with envious eyes the 
superiority and greater cheapness of municipal traction, can 
say, " Not in our (municipal) stars, but in ourselves, that we 
are underlings." 

I venture to predict something similar in London for omni- 
buses, railways, and even tubes, when London owns a complete 
electrical surface tramway service with a universal penny fare, 
but which is at present being obstructed and crippled in its 
development by a small knot of Parliamentary capitalists who 
find mischievous allies in the House of Lords. 

What the Times really fears is not municipal mismanage- 
ment, because that does not prevail. In the interest of private 
enterprise it really dreads State and municipal absorption, and 
more efficient working thereby, of monopolies that in service 
have become intolerable, and in slowness and cost unendurable, 
either for civic expansion, social needs, or commercial develop- 
ment. 

The Times apprehends, without cause shown, that muni- 
cipal trading may fail. I do not share that fear. Social odium 
and displacement can always be relied upon to stimulate 
officials to do " the utmost for the highest." Greater powers 
to committees and officers to dismiss lazy or incompetent 
workmen will correct any abuse from this quarter. And if 
sectional aims go too far, as often they do, particularly at the 
War Office, the mass of the public can be relied upon to 
administer the necessary corrective in a summary way. 



JOHN BURNS 271 

Where that has not been done, experience will teach, and 
the necessity for success will compel. 

In the latter process, labour leaders, as in the past and 
present, will deprecate and resist the sectional aims of a class 
or trade unless these can be reconciled with the instalment 
process of improving the mass of the community step by step. 

In fact, signs are not wanting that already the sensible 
servants of the State, and the equitably-minded of the muni- 
cipal workmen, are conscious of the danger that disproportionate 
demands may bring to the commonwealth. And, with a few 
exceptions, amongst leaders and men there is asserting itself 
a belief that all for each means also each for all. The ever- 
widening sphere of municipal employment, of course, presents 
social, political, moral, and ethical difficulties. But the same 
problem is greater in the trust, the combine, and the public 
monopoly, as the " Car Barn Vote " of companies' employes 
proves. 

The greater difficulty about the latter is that a few persons, 
often a single individual, such as a Pierpont Morgan or a 
Penrhyn, can only be dealt with when an industrial crisis is 
reached, and from behind the wall of uncontrolled possession 
either cripple industry by a corner in commodities, or by rail- 
way rates, or crush out human sympathy and combination by 
a feudal edict that municipal ownership would avoid. 

In a word, the rapidity of growth of towns, the productivity 
of labour and machinery, the aggregations of populations, the 
increase thereby of complex civic problems, brush aside all the 
doctrinaire theories of individual as against collective owner- 
ship. The average Briton, to his credit, cares neither for the 
cast-iron formulae of Marx, or the belated wails of individualists ; 
what he cares for, votes for, and pays for is the best that any 
system will produce, and the answer to the allegations of the 
Times, as to the dangers of municipal enterprise, is that con- 
currently with keener criticism municipal trading dispropor- 
tionately grows, and will so continue to prosper. 

What is needed for its guidance, development, and full 



272 MODERN SOCIALISM 

fruition for the ratepayers is greater tolerance and more sympa- 
thetic relations between all classes of people in matters that 
affect the common interests of the newer and the higher 
citizenship. Fortunately this is coming, as is evidenced by 
the excellent work, apart from their political differences, that 
the London County Councillors have generally displayed at 
Spring Gardens for the betterment of London. In this work 
none have shown better judgment, tact, and self-denial than 
the Labour members. 

It would have done the Times more credit if it had en- 
couraged this process from its higher vantage-ground, instead 
of turning on a cock-and-bull story about an officer sending a 
map to be repaired to the Works Department the cheapest 
and best way of getting it done, by the way or of a painter 
refusing to unscrew a door-plate because it was a carpenter's 
work. 

I could retort by saying that because my trade union and 
the plumbers spent foolishly about ; 100,000 over a demar- 
cation of work dispute some years ago on the Tyne, that 
therefore the employer on whose works this collective folly 
occurred should be pilloried for an act he was not responsible 
for. The fault rested with the respective trades, not with the 
council or employer. Similarly the Times distorts, exaggerates, 
omits, and misinterprets the greatest movement of the century 
which it wishes to destroy, but has not the fairness to 
understand. 

Its charges about direct employment of labour are as 
ridiculous as they are untrue. 

The L.C.C. only asks contractors to grant their workpeople 
" the rate of wages, hours, and conditions in practice 
obtained " by the trade unions from associations of employers, 
and in practice obtained. The L.C.C. itself only pays to its 
workpeople what the same workmen could get on similar work 
elsewhere. Its other clauses as to payment, arbitration, re- 
tention moneys, and other conditions are much more favour- 
able to contractors than those enforced by the Metropolitan 



JOHN BURNS 273 

Board of Works. The Council insists upon, and generally 
secures, the same amount of work as contractors, and certainly 
gets a better quality of work from those it employs. 

With regard to its Works Department, the inception of 
this policy was due to the contractors themselves by their high 
prices and their mysteriously similar tenders, and the desire to 
remove from L.C.C. officials a sphere of temptation to which 
I am not anxious any public servants should be subjected, and 
to which some of their predecessors' servants succumbed, as 
recent magisterial and other significant facts disclose. 

Whether the Times cares for it or not, the elimination of 
the middleman, the abolition of the contractor, is a rapidly 
growing process not only for all public bodies, but for Govern- 
ments and even large private manufacturers. It is in that way 
that profit, concentration, and economy are to be found, and 
is the only weapon of the community against the tyranny of 
the trust. What is more, if there is any defect in the direct 
employment of labour by the L.C.C. , the primary responsibility 
for this rests upon those who, for political or trade reasons, 
have prevented the proper equipment, administration, and 
work of the department. 

Where similar work is done by the City of London, the 
London School Board, or even by the Government, at same 
cost and no batter quality, there is a studious silence; but 
" what in the City captain is but a choleric word, in the 
County Council soldier is rank blasphemy." But the facts 
about the Works Department are these : 

Since its inception it has done, under the old management, 
.793,990 5-f. id. of estimated work at a cost of .865,244 
gs. 10^., or .71,334 above estimate, by no means the 
absolute standard, and that on 12 jobs taken too cheaply in 
the early stages. 

Under the new management it has completed "466,102 
Ss. zd. estimated, at a cost of ,473,713, or "7610 above. 
From the latter alleged loss .7233 is to be deducted for 
profits on jobbing works, or a net loss of "400. As a set-off 

T 



274 MODERN SOCIALISM 

against this, over the whole period, 97,000 has been incurred 
for excessive establishment charges, 34,000 for general 
charges, including interest on capital, .12,377 ^ or repayment 
of capital, or a total of 144,000. If any ratepayer wishes to 
see whether he has value for the money, a visit to New Cross, 
Whitefriars, Battersea River, and other fire-stations will 
reassure him ; whilst a visit to the new Lots Road Pumping 
Station, Heathwall, and other works, will dispel the " wild 
and whirling " words of the authors of Municipal Socialism in 
the Times as to the capacity, cost, and quality of the depart- 
ment's work. 

If contract comparisons are needed : Parliament Street 
contract paving, the annual cost of 35,000 a year on 
scamped Board School buildings, the Victoria Embankment 
repairs, and the enormous extras on the works by other 
London bodies that can be named. These bodies are being 
tardily driven to follow the policy of the L.C.C. in defence of 
the ratepayer, independently of the interest of the workman, 
the protection of the contractor, or the aims of the theorist. 

The wise municipal statesman says, with the poet Pope 

" For forms of government let fools contest, 
Whate'er is best administered is best." 

The growth of municipal trading is only the recognition, 
and the profitable application to municipal affairs, of the 
sensible couplet that is never quoted by the present Govern- 
ment of the country, which on all counts is worse managed 
than any borough council I know of, including, with all its 
difficulties, overburdened, undermanned West Ham. 

The Times } in its quixotic crusade against municipal trading, 
descends from the criticism of municipal life in general to the 
particular in several instances, and of course, not unexpectedly, 
Battersea, with which I am associated. Is this a premonition 
of an imminent general election, as I notice that invariably in 
London a wholesale onslaught is made either on the L.C.C. or 
the Battersea local governing body a few weeks before either 



JOHN BURNS 275 

of the two elections occurs ? Of Battersea, the first charges 
are that the representatives of the masses make pilgrimages to 
Battersea, with the view not of studying municipal efficiency, 
" but of getting nice, soft, and comfortable jobs." This quite 
unfounded statement is disposed of by the fact that the over- 
whelming majority of the staff now engaged by the Battersea 
Borough Council have been transferred from the old local 
Board of Works, the defunct vestry, or as vacancies have 
occurred from the best qualified, whether from Liverpool, 
Manchester, or elsewhere, irrespective of politics, creed, or class. 

Borough Councillors can truly say, " None of my relations 
are (local) Government contractors." Whilst in the matter of 
relationships, Downing Street could do worse than emulate the 
Spartan self-denial of Battersea. 

It is true that the majority of councillors are of the working 
classes, but so are their constituents. Better this than the 
creatures of contractors, as too many members of the old 
London vestries were, and in so being causing their belated 
disappearance in favour of the existing bodies, who are 
extending municipal enterprise as fast as they can to undo the 
heritage of neglect and jobbery the vestries bequeathed to 
them. The allegation that this Labour representation has 
operated to the detriment of the district is disposed of by 
comparing its roads and the cost per mile thereof, streets, 
sanitation, libraries, baths, electric light, its sterilized milk 
depot, its gymnasia, gardens, and other amenities, with Tory, 
middle-class, company-ridden Wandsworth, or with the aristo- 
cratic Westminster City Council, which, in my opinion, is the 
worst and most costly district in London, with its paving 
scandals and its mania for advertizing itself in costly street 
name-plates. 

It is true that Battersea has a works department, but so 
has the Times office for its limited work. 

That works department from 1895 to March, 1902, did 
-"266,000 of estimated works at a cost of ,256,000, or 
; 1 0,000 below estimate, and which, allowing for office and 



276 MODERN SOCIALISM 

establishment charges, still yields a profit to ratepayers for 
admittedly superior work, the abolition of tips, secret com- 
missions, and high maintenance charges that bad contract 
work always means. 

The instance of the excessive cost on the Albert Bridge 
Road sewer is only partially true. This was a difficult job. 
A new sewer had to be placed under another, which had 
collapsed long before its proper time, because it was badly 
built by a contractor; there were difficulties through land 
water getting in ; but there is less to blame the council for in 
this than in the system of cheap and nasty work that rendered 
this job necessary at all. 

What the " Municipal Alliance " want is to get back to 
power to revive this condition of things ; hence their rage and 
disappointment through the medium of the Times. 

The silly stories of five men to drive a nail, the fiction 
about York Road chalet, which could not be put elsewhere 
except at treble the cost, and could not be altered as to level 
because of main sewer, my unfounded visits to certain works, 
and my purely imaginative rebuke of workmen on these jobs, 
are but the irresponsible clatter of defeated jerrybuilders in 
their cups, or the fictions of a few dismissed employes who 
were sent about their business. 

The statement about " local government in Battersea being 
carried on far more in the interests of municipal employes than 
in those of the general body of the ratepayers " is as unfair as 
untrue. This statement is the invention of the local Municipal 
Alliance, that on several occasions have failed to make their 
charges true, and, what is more, do not make them on the 
council itself, where they can be refuted. 

The numerical answer is that in November, 1899, the 
council had in its employ 570 when work to be done justified 
this number. It has now 242 doing its necessary public work, 
and of these I should say half were without votes, spread over 
two L.C.C. and Parliamentary constituencies, and the majority 
of these people often are Tory in their views, 



JOHN BURNS 277 

It is true that Battersea has a debt of 5 15,000, but what 
of that ? Its assets in electric light, libraries, baths, wharves, 
works, and other properties, counterbalance this. It is also 
true that its rates have been seriously increased, but this is not 
altogether the fault of the borough council. It is due to causes 
general to all parts of the metropolis, partly to outside bodies, 
who out of a total rate levied by the borough council of 
383,000, leave the borough council only .136,000 for its 
manifold duties; and this cannot be specially attributed to 
Battersea workmen. One,, of the chief reasons is due to the 
eviction of the very poor from low-rated West End parishes, 
who bundle their poor and their burdens over the bridges from 
Belgravia to Battersea. The way out is to further equalize the 
cost of Poor Law maintenance, but not to cut down the 
standard of sanitary efficiency. 

The Times then makes a great fuss about what Battersea 
spent upon free concerts, now disallowed by Local Govern- 
ment Board auditor. The cost of giving 76 concerts to 84,000 
people in three years, delightful counter-attractions to the 
street and the public-house, cost the parish up to date less 
than 900, or not a farthing rate for the year, and less than a 
foolish person in the West End recently spent on a dinner for 
ten persons that fitly ended in a street row. If, however, there 
had been more tact and judgment displayed in this matter 
by those responsible, this venture could have proceeded as 
originally intended," but raw haste was ever half-sister to delay." 

The facts about the boys' club and gymnasium are not as 
stated. The truth about the matter is, that the Latchmere 
Baths in the winter were lying idle ; youths were lounging 
about the streets, with nowhere to go but the public-house or 
other undesirable places, sucking at cigarettes. 

The council fitted up a gymnasium at a cost of 496, in- 
cluding appliances, wages, expenses, and salary of instructor, 
and charged a small fee for admission and use; 31,000 youths 
paid this fee, or a sum of 403, leaving a deficit of 93, a 
set-off against which is the improvement of physique, manners, 



278 MODERN SOCIALISM 

and habits of the lads frequenting the place, which would have 
pleased Colonel Fox, of Aldershot Gymnasium, and the Royal 
Commission on Physical Education. 

As to the club, where they can play bagatelle and other 
innocent games, 16,000 boys paid in fees the sum of ^65 for 
the use of recreative pleasures that saved them from the streets 
and yielded ^3 above cost and working expenses. In all, 
47,000 youths for less than ;ioo had opened out to them 
something better than the streets and their consequent hooli- 
ganism ; and this useful work is described as a scandal. 

It is not true, as stated, that the Latchmere Baths are a 
loss of nearly ^4000 a year to the parish. The working 
expenses, including repayment of principal, are ^4843 for 
230,000 bathers; the receipts are ^2183, an ^> m s pi te f l w 
charges, are rapidly improving. 

The Times man forgets to mention,, whilst on Latchmere 
Baths, that these dreadful Battersea workmen have dared to 
dispense with a water company bill of ;6oo per annum by 
sinking a well, the property of the council, that gives them the 
necessary supply for less than .100. He forgot also to 
mention that its sterilized milk depot is becoming self-support- 
ing in a short time, and has been blessed by the Coroner, 
approved by the doctors and the Lancet and has certainly 
reduced the infantile death-rate, which the dreadful Labour 
Leaguers are determined to still further diminish. 

The statement about Nine Elms Baths is equally misleading. 
The Times investigator, if he had inquired further, would have 
ascertained that the loss on this bath could have been wiped 
out if the ^4000 a year, or id. rate, which the council now 
spends in repairing defective private combined drainage out of 
the public funds, had not been saddled upon the parish by 
the house-agents who run the Municipal Alliance, and wish to 
ruin the parish; It is true there is a loss upon the Morden 
Cemetery, which is a new burial-ground of enormous size and 
with low fees; but Battersea prefers to make a dividend of 
better health out of the living rather than a profit out of the 



JOHN BURNS 279 

prematurely dead. The Labour Leaguers actually had the 
audacity to ask the railway company for cheaper railway fares 
for the mourners, and, as with nearly all its attempts, it really 
succeeded. The borough would, however, bury the Municipal 
Alliance at a loss, to prevent their emissaries from misleading 
a great paper like the Times, that might, before publishing these 
libels, have seen the responsible officials and members of the 
borough council. If not too late, I will give the authors of 
the articles a few days to correct their mis-statements by view- 
ing the parish with them,and displaying its attractions and un- 
folding its well-kept accounts. 

The greatest inaccuracy of all is that the borough loses 
over ^"3000 a year over the men's sick club. The fact is, the 
borough council gave ^250 last year for a fund to which the 
men contribute 4^. per week. Of the 624 average membership 
this year, 21 only at this moment are on the fund. Consider- 
ing the character of occupation and age of men, none under 40 
being engaged on roads, this is not bad. This is allowed and 
approved by the Local Government Board. This is a sample 
of the allegation that passes for criticism in the Times, which 
seems to me very much " out of joint." Here and there in 
the Times articles on Battersea is disclosed the source from 
which the inspiration is derived. I have to meet it at every 
L.C.C. and borough council election, and presumably this 
last criticism is intended for local use by the dispossessed 
Moderates at the next Parliamentary election. 

I have not the least fear as to the result, because con- 
currently with refuting the Times' attacks on democratic govern- 
ment in this district, in the main prejudiced, partial, or untrue, 
I intend to advise those with whom I work to legislate for the 
parish as a whole, and if, as on one or two occasions, this is 
not done in the general interest of the community, I will with- 
hold what support I can command, and, if necessary, actively 
oppose any party or candidate who could act or would attempt 
to defend the purely imaginary condition of misgovernment 
which the Times has fabricated. 



280 MODERN SOCIALISM 

The fact is a great paper has been befooled by a few 
discredited and defeated people, who have stuffed the ears of 
the Times' correspondents with fables, filled their mouths with 
libels of a district that, with all its shortcomings, as competent 
observers can see, is a model to the west and an exemplar to 
the east. 

In all that Battersea and its Labour majority does for the 
improvement of its community by the money its generous rate- 
payers place at their disposal, I believe that better value is 
given in return by officers, workmen, and councillors than in 
any district in London. 

I say that deliberately after having given five weeks of my 
Parliamentary vacation to visiting all the districts, parks, works, 
and other public institutions all over London. 

In spite of a few blunders that have been checked, a few 
errors of judgment, curiously by the very section the Times 
picks out for special distinction, the borough council still 
enjoys the confidence of the electors; but has earned the 
curses of the opponents of all that is good for the parish and 
for London. 

The attack of the Times has failed to impress the district, 
because it is but a rechauffe of flat, stale, and unprofitable 
mendacity that failed at the last elections for L.C.C. and the 
borough council, and is mainly directed, politically and person- 
ally, against myself. From the collection of house-agents, 
slum-owners, publicans, and others that compose the declining 
Municipal Alliance we expected nothing better. But from a 
great newspaper that is still a power when it dares to rise to its 
great traditions we had expected dignified correction when 
proved to be wrong, sensible advice when doubtful policies 
were under discussion, and cultivated instruction when inex- 
perience prompted a wayward policy. 

But instead of a dignified and well-informed reminder of 
duty, obligations, and the responsibilities of Labour to the 
community, which we could have respected, and where true 
and applicable sincerely adopted, we have had a wanton 



JOHN BURNS 281 

attack, inspired by local malignants, prompted by political 
faction, in the interests of private monopoly that too long 
has dominated the life of our great city. In the movement 
called by the Times "Municipal Socialism," it suspects that 
this is an attempt of a class to capture power, fill offices, spend 
other people's money in the interest of a special class to the 
detriment of the community as a whole. This is what the 
contractor, the trust, the syndicate, the resultant " Boss " and 
"spoils" system have produced in many American cities. 

Municipal Socialism will avoid that danger in Britain, be- 
cause the incentive for company franchises, the fruitful source 
of corruption everywhere, even in Parliament, will not exist; 
because the town will own the trust, instead of the trust 
owning the town. 

In so far as Battersea has secured the ownership by its own 
ratepayers of what is left to inefficient and costly private enter- 
prise elsewhere, Battersea has done well. 

The movement amongst workmen for a greater share of 
the blessings that municipal life confers on society as a whole 
is not a disordered scramble for office, patronage, or largesse 
under the guise of dawdling service or perfunctory labour. For 
Labour there must be no " Miching Mallecho ; " for the com- 
munity none but loyal and strenuous service. 

It is a revival of the old-time enthusiasm for a richer, 
fuller civic life as a means of lifting themselves from the pit of 
Tophet into which past neglect consigned them, private enter- 
prise enthralled them; and from which in raising themselves 
they deserve better than the gibes and jeers of the "Joe 
Millers " of the Liberty and Property Defence League in the 
columns of the Times. If in this upward movement of a 
people, for the benefit of the race, for something better than 
hovels to live in, drink as a diversion, monotonous toil as a 
livelihood, there has been, as at West Ham and elsewhere, 
strong language, in some cases provoked by the present 
snobbery and past jobbery of Tory Bumbledom, it is but a 
rough incident, a mere stumble, in the stride of a people from 



282 MODERN SOCIALISM 

the cringing, dependent period of monopoly tutelage, to the 
higher life of the craftsman citizen of a free community. 

In that general movement for a brighter, better London, 
Battersea deservedly stands in the forefront of municipal 
progress ; and for that worthy cause Battersea Labour honestly 
works, and its workmen, without patronage or corruption, will 
ever honourably and fairly strive to lead. 

Yours truly, 

JOHN BURNS. 

September 23, 1902. 

The following was the municipal programme given in Mr. Burns' 
election address for the London County Council election of 1898. 

If elected, I will, as heretofore, devote my time to the 
Council's work, and am in favour of 

1. The extension of the powers of the Council, so that the 
City, with all its funds and endowments, be included in and 
used by a real Municipality for London. 

2. That all monopolies, such as gas, water, tramways, 
omnibuses, markets, docks, river steamboats, and electric 
lighting, should be municipalized, and the profits, amounting 
to ^4,000,000 annually, or three times the Council's revenue, 
devoted to public purposes. 

3. Establishment of municipal hospitals in every district, 
and control by the Council of those which already exist. 

4. Artisans' dwellings, as now, to be constructed and owned 
by the Council. 

5. Enlargement of powers so as to enable the County 
Council to undertake the organization of industry and distri- 
bution, especially in those departments dealing with the neces- 
saries of life. 

6. Rigorous enforcement of Public Health Acts, and 
efficient sanitary and structural inspection of dwellings and 
workshops. 

7. The organization of unemployed labour on useful work 
at trade-union wages. 



JOHN BURNS 283 

8. The direct employment of all labour by the Council at 
eight hours per day at trade-union rates, women and men 
receiving equal pay for equal work. Nine years' experience 
has proved that contract work, however well supervised, does 
not produce such good buildings and workmanship as the 
Council has secured by its own workmen. 

9. Direct control by the Council of the five millions of 
money now spent, and too often squandered, on useless 
officialism and feasting by charitable institutions and City 
companies. 

10. The police of the City and Greater London to be 
controlled by the County Council. 

11. Cumulative rating, the taxation of ground landlords for 
the relief of the occupier, and the provision of new sources of 
revenue. Sevenpence half our present rate now goes to pay 
the old debt left by our predecessors, thus depriving London 
of many necessary improvements. 

Besides these measures, I will work and vote for any plan 
that will enable London to reduce its poverty and brighten the 
lives and increase the comfort of its people. 

The following is Mr. Burns' Parliamentary programme as given 
in his election address of 1900. 

As a candidate, dealing with immediate questions, and 
asking your votes, I am in favour of the following : 

Home Rule for Ireland, and such measures of legislative 
independence as the Irish people may demand for their 
political, social, and industrial emancipation. 

Payment of members and election expenses. 

Adult Man and Woman's Suffrage, and drastic amendment 
of Registration Laws, Second Ballot, and Referendum. 

Triennial Parliaments. 

Abolition of the House of Lords and all Hereditary 
Authorities. 

Conferring upon the London County Council all the 
powers enjoyed by other municipalities, and giving to London 



284 MODERN SOCIALISM 

a unification of complete municipal self-government, with power 
to acquire all existing monopolies. 

Wider powers to Local Authorities to deal with Housing 
of the Poor, and the creation of Fair Rent Courts. 

Alteration of the incidence of taxation, so that the ground 
landlord, the owner, and the rich, shall pay their just propor- 
tion of taxation. 

Disestablishment of the Church. 

The Legal Eight Hours' Day as the best means of securing 
work for all, overwork for none, the avoidance of strikes, 
reduction of the rates, and giving permanent employment 
where demoralizing casual labour now prevails. 

Raising the age of child labour, and placing all trades 
within the scope of the existing and future Factory and 
Sanitary Acts. 

Alteration of existing Poor Law, and diversion of its funds 
to some scheme of Old Age Pensions that, by cumulative or 
graduated income-tax on the rich, would give sustenance to old 
people without pauperization. 

Giving to localities absolute and complete power in decid- 
ing upon all questions relating to the drink traffic by Direct 
Veto and Local Option. 

The recognition of Trades Unions, the abolition of sweating 
and subletting, the payment of union wages in all Government 
Departments, and the checking of waste, jobbery, and extrava- 
gance wherever found. 



XX 

SOCIALISM AND CO-OPERATION 
BY E. ANSEELE 

An address delivered to a meeting of French Socialists in Paris 
in 1900. 

Edouard Anseele is the son of a working bootmaker, and began 
life as a compositor at Ghent. He started in 1873, with a handful 
of friends, the Ghent Socialist Co-operative Society, "Vooruit;" 
which from the smallest beginnings has come to have nearly 10,000 
members and over ,25,000 capital, with premises which are the finest 
in Ghent. There is now a Socialist co-operative in Brussels on an 
even larger scale, and of the 1700 co-operative societies in Belgium 
most are Socialist All Belgian Socialist activity centres now 
around its " Maisons du Peuple." 

The following address gives some idea of the all-round manner 
in which these Socialist co-operatives try to benefit their members, 
providing entertainment, education, medical care, funds for the 
Socialist press and party, and premises for trade-union meetings. 

I COME to plead before you for the marriage of two ideas, 
which some years ago were thought incapable of uniting 
Co-operation and Socialism. 

In a meeting at Brussels some time back, I made a com- 
parison. The Co-operative Socialist movement which we 
my friends and I have created in Belgium might The a m ance 
be likened to the union of a sempstress and an of Socialism 
artist. She, the sempstress, wants a larger life 
than her shop and her trade ; he, the artist, wants 
his soup served to the minute and his cooking done reliably 
and regularly on a plentiful scale, to enable him to fling himself 

285 



286 MODERN SOCIALISM 

into the world of the most daring creations. She has had her 
trials, the poor sempstress. She was looking after her little 
household with a prudence which not many ministers of finance 
display in many countries ; while he took it into his head to 
consort with wrong people, or rather people with wrong ideas 
revolutionists and Utopians and to spend the money so 
hardly earned in meetings and. manifestations and for under- 
takings which, after all, yield no income. She was annoyed, 
and now and then she would say, " I'll stop payment." And 
then he explained things ; talked of the new world, of the nobler 
ideal, of a great revolution in ideas, of universal changes, of 
things which she understood very little but felt very much ; and 
she would say, " I love you more than ever ; I'll go on paying, 
only don't ask for too much ! " 

In Belgium the cause is won. They are married, and from 
their marriage lots of children have been born lots more 
even than in Zola's novel Fecondite. But the case is far from 
being won here in France. No more is it in Germany, much 
less in England. On the one hand, people blame Co-operation 
for being Socialist ; on the other, they blame Socialism for 
being Co-operative. And yet in Belgium the marriage is such 
a success, its offspring is so sturdy and numerous, that we have 
even (again as in Zola's novel) reached the colonizing stage 
which has brought me here. 

Co-operators who are only co-operators say : No Socialism 
in Co-operation; Co-operation and nothing else; grocery, bread- 
Theanti- baking, drug-selling that's all; soup at a penny- 
Socialist co- halfpenny, bread at twopence-halfpenny beyond 
operator. ^^ no thing. We say : You are wrong. And, my 
bourgeois friends, note that we can discuss the subject with 
you ; we are as good men of business as you lovers of pure 
Co-operation. Look at our bread-factories, just as successful as 
yours, and perhaps more so, because people can be thorough- 
going reformers and remain good men of business. Well, I say 
you are doubly wrong, from the moral standpoint and from 
the material. Co-operation has to be Socialist. And why go 



E. ANSEELE 287 

wrong ? Take the moral standpoint first. What is Co-opera- 
tion, unless it is a struggle, not merely for the immediate 
bettering of one's lot, but for the transformation of society 
in a higher sense? Otherwise, we should have simply to 
endeavour, by competition, to get our wares as cheap as yours. 
But Co-operation is a great work of reform; and to create, 
maintain, and enlarge a great work of reform, you want the 
sacred fire among those who take part in it. Socialism 
supplies that sacred fire. And if with us that union of which 
I spoke just now is so strong and indestructible, if with us our 
enthusiasm is as great as our daring, it is, thanks to the sacred 
fire, that Socialism has put into our hearts and minds. Secondly, 
you are wrong from the material standpoint. Do you want a 
striking example ? Here is one. Suppose all the French co- 
operative societies, Socialist and non-Socialist, joined; suppose 
them as rich and strong as all the co-operative societies in the 
world put together; they never, never, never not if they had 
the greatest business men, the greatest financiers, the greatest 
accountants at their head they never could, of themselves 
alone and without exerting pressure in the political sphere, 
lower the price of bread in the same proportion as the protec- 
tive tariff law in France has increased it by putting a seven-franc 
duty on the import of foreign grain. In vain, you co-operators 
pure and simple, in vain you may want to cut a farthing into 
two; of all your saving, of all your initiative, half or three- 
quarters or the whole will be annihilated by a single bad law 
which will raise the price of an article more than by your 
intelligence and your efforts you can lower it. 

That is how the co-operators pure and simple err, both from 
the moral and the material standpoint. 

Next there are our friends (and when our friends give it 
us they do give it us !) our friends the anti-co-operative 
Socialists. What do they say, our friends? They Theantl _ 
fear, it seerns, for our work. I like and respect co-operative 
this sentiment, if it is sincere. But what do they Socialists ' 
fear ? Do they fear that Co-operation, which tends to give a 



288 MODERN SOCIALISM 

gentler character to the Socialist movement, may check the 
generous hearts and the broad minds of the other class, and 
prevent them from coming to Socialism in greater numbers? 
I think they are mistaken : for precisely through the incite- 
ment to gentleness and the practical spirit, which Co-operation 
gives to Socialism, do I think that the generous hearts and 
broad minds of the other class will come in greater numbers 
than before. Do they fear their coming in too great numbers ? 
Are they afraid of the flood of "intellectuals," of generous 
hearts and broad minds from the other class, pouring into our 
class ? Do they fear that ? I do not. I am not afraid either 
of the wealth in their brains or that in their coffers; and if 
their ideas help us to find our way, and their coffers help us to 
travel along it with fewer victims and less suffering, I do not 
fear the advent of as many " intellectuals " as possible in the 
ranks of the working-class. In Belgium we have with us 
" intellectuals " full of talent, you know about them, and I 
need not mention names, fine fellows who in the Belgian 
Chamber can give some nasty knocks to the champions of their 
former class. Well, these "intellectuals," full of talent and 
enthusiasm, and sincere in their faith, can only do good in 
our midst. And if they wanted to do harm, the conscience 
of the organized working-class would prevent them in twenty- 
four hours. 

Do they fear, our friends who criticize us, that the petty 
bourgeoisie may not join us or may leave us? For that 
Socialist co- matter, let it leave us; it is no great loss. It is 



operation; not on our s [^ e even jf we are not CO -operators. 

and the . 

petty bour- Certainly I would not go out of my way to scare 

geoisie. fa e petty bourgeoisie, nor any part of a class which 
is not my class. But if to set my own class free I am con- 
vinced that I must adopt certain tactics, and if it happens that 
in consequence of these tactics the petty bourgeoisie is in- 
duced to leave me or not to join me, I would stick to my 
tactics, come what may. I have the interests of my class to 
defend, and it is these and no others that guide my conscience. 



E. ANSEELE 289 

Besides, what can we do ? What can the little co-operative 
societies little compared with the Louvre, or Bon Marche, 
or Dufayel, like tiny cockleshells beside big transatlantic 
liners, what addition by themselves can the little co-operative 
societies make to the vast economic process which is tending 
to stamp out the petty bourgeoisie ? The great industry has 
resulted in a lessening of the cost of production ; it is logical 
that the cost of exchange should be lessened as far as possible 
also. If in this new economic transformation things must 
happen which hurt a par^ of a certain class, well, I pity it 
from the bottom of my heart. But if its elimination leads 
us to an order better, juster, and more generous for the vast 
mass of men, well, I throw into the balance the welfare of 
the majority against the misfortune of a few. Besides, in 
the development of production have not we, we also, been 
stamped out ? Has not the artisan been displaced by the 
machine, dispossessed of his technical knowledge, of his trade, 
to be swallowed up in the factory, which has grown large 
enough to hold a whole village's population within its walls ? 
To this precarioussituation, caused by the economic develop- 
ment I, the workman, have, willy-nilly, to make up my mind. 
And in the conditions in which I live, I have none too 
much of my wretched wage by the end of the week. I must 
be a very sober workman ; my wife must be a very thrifty 
woman; my children cannot be ill twice a year; or else 
I get into debt. Suppose, then, I am a workman whose duty 
as father of a family, is to take good care of the household 
interests, and suppose, by a system of buying and selling 
different from that of the bourgeoisie, I can lower the price 
of the articles of food on which my family and I subsist, am 
I to be prevented from doing so by a feeling of solidarity with 
the petty bourgeoisie ? I could understand it, were this class 
always at our side in all our struggles, sustaining us, encou- 
raging us, if it were with us heart and soul. But no ; a very 
great part of the petty bourgeoisie is at heart with the enemy, 
and with us for its pocket. Mind you, I do not say tha| 



290 MODERN SOCIALISM 

systematically. People tell us : " You frighten the petty 
bourgeoisie." I reply : " I cannot help it ; if it wants to join us, 
it can. What is more, it ought ; for after all, I reckon, the life 
of the petty bourgeois, from the spiritual point of view (I do not 
speak here of the material standpoint), is an unhappy one. 
He must always be of his customer's way of thinking, or else 
he loses him ; and if he loses three, four, five customers, his 
trade is doomed. His whole existence hangs by a silken 
thread. And it is this miserable life that he wants to keep ; 
he wants to tighten the chains, to stick yet faster in the mud, 
of the capitalist society, which leaves him this shame of the 
spirit to earn his bread with. Well, let him endure it. 

Our friends (those who give it us so often and give it us so 
hard) say too : " By your co-operative societies you excite the 

, selfishness of the working-class." Well, those who 
The fear of 

making the say so are not acquainted with the Socialist co- 
working- operative societies. Had they been ever members 
class selfish. ... : 

of one, they would have a different knowledge of 

what goes on in them. In the Socialist co-operative societies, 
as in all others, bonuses are divided out quarterly, half-yearly, 
or annually. Well, I can assure you, not one of these divisions 
occurs where members receive five, ten, or fifty francs, without 
there being by the side of the man who pays them out one, two, 
or three boxes " For the Socialist propaganda, please ! " " For 
the weavers on strike, for the spinners on strike, please ! " 
" For the Socialist children, please ! "and it is " please " this 
and " please " that, and of the money meant for the woman's 
purse or the man's waistcoat only three-quarters goes there. So 
a quarter of the bonuses goes of the co-operator's own accord, 
through the Socialistic impulse which inspires the man, makes 
him better, warms his heart to the noble ideas, the large 
aspirations, which make men not egoists but altruists. That 
reproach is so false, the truth is so contrary to what our friends 
the anti-co-operative Socialists say, that do you know what we 
are obliged to do ? With us at Ghent it goes so far that some 
of our members are how should I put it ? it is perhaps harsh 



E. ANSEELE 291 

bothered by all these kinds of collections, till we have been 
obliged to make it a condition for every collection in the 
" Vooruit," that the Central Committee's leave be obtained first. 
See how selfish Socialist co-operation makes people ! 

But beyond that, if these friends (whose friendship I may 
have misunderstood), if these Socialist anti-co-operative friends 
mean that the ameliorations we secure, the bit of good we do 
to the workman's family, do harm to the movement, then I 
lose patience, and tell them that this time they err grossly. 
What ! they say we do a disservice to the working-class ? To 
increase the working-class's comfort is to endanger its cause 
and ours? Are, then, the poorest the most intelligent and 
brave, and deserving? Is it the wretchedest who know best 
how to sacrifice themselves for the cause of all? No; the 
poorer people are, the more they are liable to be brutalized ; 
and if there is anything which raises a man, it is not misery, 
it is comfort. Wealth makes men bad ; poverty makes them 
brutish : comfort makes them independent. What does in- 
creased comfort effect ? It not only enriches the man who 
gains by it, it gives him weapons, for him to go higher and get 
more; and it gives him besides that ferment, that leaven, 
which makes revolutionaries, new needs. 

The objectors go on : " Yes, that may be so ; but selling 
syrup or putting half-soles on boots isn't, after all, a Socialist's 
work." Of course not. But if that groups men, what does it 
matter whether I group them by syrup or by vinegar, provided 
that I group them ? And I shall group them more easily with 
syrup than with vinegar. Besides, there is another point. 
Did any one ever think he could ennoble trade ? Surely, a 
thankless, quasi-impossible task. Yet we have ennobled trade. 
Trade, says Dumas, is other people's money. It is not so 
with us. There is no overcharge, or, if there is, it comes back 
to the purchaser of the article, that is, to all the class who 
suffer and fight for new ideas. We ennobled commerce when 
I proposed that the " Vooruit " should establish free pensions 
for all its members, I said: "That seems almost chimerical; 



292 MODERN SOCIALISM 

it is not easy ; but aren't we accustomed to doing things far 
from easy ? " And I said again to my comrades : " But did 
you ever think it possible, ever conceive it humanly possible, 
to get a pension while having one's old boots mended, or 
buying a litre of milk or a kilo of bread ? " " No/' they replied, 
" that's a new thing." " Well," added I, " you'll see it." And 
at the " Vooruit " there are pensions for all members aged sixty 
after twenty years' participation in the Society ; after having 
bought at the Society's shops 3000 francs' worth during twenty 
years, you get a free pension ranging from 120 to 300 francs 
per member per year, which a man's wife can inherit from him. 
So in buying syrup or vinegar, in having one's boots mended, 
in buying a present for wife or husband, the New Year's gift 
for the grandmother, or the St. Nicholas 1 toy for the little one, 
one is working for the father's pension. But that means en- 
nobling trade ; it is one of Co-operation's noble sides ; one of 
its great moralizing sides. 

" But," say our friends the anti-co-operative Socialists, 
" you give the working-class petty-bourgeois ideas." Wrong 
Co-opera- again. I ask those of you who have paid our 

tionneed co-operative societies a visit, whether you can 
not lower * 

Socialist be inspired with petty-bourgeois ideas on entering 

ideals. their fine premises, as fine as museums, their halls 

and shops, as spacious as cathedrals. I ask them, can the 
workman who goes in there and says, "There is something 
of me here, / am part of the class which has made these 
great things " I ask you, does that man feel a petty bourgeois ? 
No j he feels himself one of the new Grand Army, which will 
not go to plant eagles across Europe, but to plant the land- 
marks of the new world across the universe. Petty bourgeois ? 
No, no ; " petty " people do not do these things. And recol- 
lect how we started at Ghent : a handful of the poor weavers, 
whose misery Heinrich Heine has sung, whose life of sorrow 
and whose outbursts of revolt the German playwright Haupt- 
mann has displayed. Recollect what poor wretches we were, 
1 St. Nicholas is a Belgian counterpart of the English Santa Claus. 



E. ANSEELE 293 

without money, without premises; for it was to be without 
money to have but 85 francs 93 centimes l subscribed capital, 
and it was to be without premises to have a cellar ; with an 
old kneading-trough, an old shovel, an old baker, not even a 
cart a big basket some few loaves in it ; and, tally-ho ! off 
we started. Well, when with those resources, that beginning, 
those rudiments, you do what has been done at Ghent what, 
also, under similar conditions the Brussels workmen have done, 
I think you can say, that a work which has created all that, 
which has thus transformed wretched weavers into apostles of 
the new cause, that this co-operative work does not inspire 
petty-bourgeois ideas. Really, how our friends do give it us, 
and give it us hard ! 

And what, after all, is the aim of these friends, the anti- 
co-operative Socialists, and what, really, is ours? It is the 
organization of the working-class, to do with it what Archi- 
medes was unable to do. You know, that old Syracusan 
architect said one day, " Give me a fulcrum, and I will find 
a lever to lift the world." Well, Socialism has found the 
fulcrum and the lever. The fulcrum is equal rights ; the lever 
is the organized and conscious strength of the workers, which 
will lift the world and bring a new order out of it. That is 
our aim. Then I ask my friends, how can Socialism, allied 
with Co-operation the artist married to the sempstress how 
can it hurt the organization of the workers ? 

Suppose I have a working-class audience, purely working- 
class, the sort of people we are to organize, and suppose I speak 
as well as I can, and that in his turn Jaures with co-opera- 
all his heart and eloquence addresses you, and g^i^to 
that between us we send our respective audiences ge t at once 
to the seventh heaven. We finish speaking; the to work, 
audience goes out; we have preached organization, trade- 
unions, mankind, everything. The audience has gone ; follow 
it. " Ah, how well Jaures spoke ! What an orator ! Anseele, 
too, was tolerable." So they talk and debate, happy, warmed, 



294 MODERN SOCIALISM 

convinced. Afterwards they each go home ; and if we take 
the worker whom I addressed, and who applauded me just 
before, what does he find ? A sick wife, or a sulky mother ; 
or, next day, the master before whom he is isolated weak in 
his isolation, before whom he is nothing, like the pigmy David 
without his sling before Goliath. Of all the enthusiasm, of all 
the fine sentiments, of the aspirations, which one has created in 
these hearts and heads, there will only remain here and there 
a single man who is willing to sacrifice himself for the idea, 
who will continue the struggle without hope of reward, even 
with the certainty of receiving from his friends more ingratitude 
than gratitude. He will have the minority with him, and the 
majority wall remain just as it has been for generations. 

The minority will remain isolated and without cohesion 
and why? Because the groups formed by our warmth, our 
fire, our enthusiasm, give but little or no immediate advantage. 
The masses, with their great needs, ask for palpable benefits, 
which they can, as it were, weigh in their hands, as the gold- 
merchant weighs his gold in the balance. 

This is the weak side of trade-unions. What is necessary 
for the success of a trade-union, in order that one may reap its 
immediate benefits ? It is necessary : that in each trade at 
least the majority of the members shall be organized ; to be 
strong against the employers you must have most of the trade's 
workers, there must be plenty of money, lots of gold pieces in 
the strong box. To obtain these lots of yellow-boys needs 
weeks, months, years of saving and suffering, or else the 
struggle is lost before it begins ; and, later, when the crisis 
comes, there is possibly but half a victory, possibly a defeat ; 
and if, favoured as one may be by the unparalleled prosperity 
of industry hitherto, one may by a sufficiently strong trade- 
union, and by the cohesion of the members of the trade-union 
snatch some advantages from the employers, yet at the very 
first crisis we risk the loss of all we have gained. 

You must not misunderstand me. I don't want here to 
run down trade-unions ; I am a trade-union maker. I do not 



E. ANSEELE 295 

wish to put despair into the souls of those who take part in 
the trade-union movement. Far be it from me. But I wish 
to speak of things as they are and as I know them. With 
friendly societies and trade-unions, their future is always at the 
mercy of their financial position ; how, then, can these friendly 
societies and trade-unions, which have to stand such severe 
struggles, put aside funds to build large premises, large rooms 
for recreation, for all the necessary organizations, and for the 
Socialist education which the working-class needs, to attain the 
end towards which it marches? Whereas, when you create 
a co-operative society like your " Avenir de Plaisance," for 
example, in any quarter, it is not necessary that the majority 
of the people in that quarter should become members in 
order that the society shall succeed. Let us suppose that we 
are in a city like Paris, where there are 600,000 workmen. 
One could create a co-operative society in a quarter with 
6000 workmen, even with 1000, which, if well administered, 
gives immediate advantages : the workmen at once receive 
money, after the first six or twelve months, and their wives 
receive with them their wives, that is to say, the other half, 
the most backward half, of our movement, the part of the 
working-class most dominated by priest and capitalist. And 
this you count as nothing ? To find a means of organization 
which, instead of frightening the women, instead of alienating 
them, attracts them, reconciles them with your opinion, your 
ideal, your party, you count that as nothing ? I look upon it 
as more than the half, because woman is, in fact, for man, 
more than the half. 

Trade-unions and friendly societies cannot build large pre- 
mises, it is the exception ; but larger co-operative societies, 
like the Ghent " Vooruit," the Brussels " Maison Through Co- 
du Peuple," or the Paris " Avenir de Plaisance " gociTiism 
and " Egalitaire," can easily do so ; and if they can envelop 
have wise managers, they can build their premises, fjj, ^[ 
as, for example, has been done with the " Avenir workers, 
de Plaisance," like the ancient churches, where side by 



^6 MODERN SOCIALISM 

side the praises of God were sung and the butcher and the 
grocer trafficked. They can put the altar in the middle of the 
grocery-shop ; and thus the complete union of Socialism and 
Co-operation is really achieved. Understand me ; later, as 
things progress, that must change. The temple must not be 
in the grocery-shop, but outside ; and between the two there 
must be assembly-rooms for the trade-unions, large reading- 
rooms for every one, and libraries. We require more; we 
require Co-operation, as we regard it, to be like the Roman 
Church. It must lay hold of its man as soon as he comes 
into the world, and say, " Welcome, little one ; " then lead him 
on to the end of his life, till the moment when he leaves it for 
ever. From the cradle to the grave Co-operation and Socialism 
must never leave him. All his material, his moral, and his 
intellectual needs, his needs as a man, or hers as a woman, 
this new church of the proletariate must supply in full ; that 
the child of the people may be dedicated from his mother's 
womb to the sole defence of interests which are his own. 
To-day we have the great misfortune of being nearly all our 
lives in the hands of those whose interests are opposed to the 
interests of our class. Suppose I am born a workman my 
father a miner, a tailor, an artisan, or an agricultural labourer. 
Scarcely have I left my mother's breast when I am sent to the 
creche established that my mother may go working, and sweat 
to supplement my father's too low wage established that the 
whole of the working-class family may be exploited for the 
gain of the capitalist family. From the creche I go to the school, 
whose programmes have been drawn up by the hostile class, 
not to make a man of me, but to knead my brains as a baker 
kneads his dough, to make a slave of me. From the school I 
go to the workshop, where my whole mind, my whole producing 
strength, is let and sold down to my last drop of sweat to the 
class which is living upon my class. At twenty I leave the 
workshop, and they send me to the barracks, that some 
day I may die on a battlefield for thrones which are not 
mine. 



E. ANSEELE 2 97 

That must be changed (A voice : " Let us hope so "). I do 
hope so. And why am I calm and hopeful ? Because, you see, 
there we are, in poor manufacturing towns with Co-opera- 
wages of black bread, workers of the great, the JJjf 
middle-sized, or the small industry, and we know to be 
well enough, that if the whole mass of workers is P ati3nt - 
not yet conscious of its rights and its duties, and has not the 
indispensable managing capacity to direct production and 
exchange, to rule the world, to eliminate wholly the ruling 
class and put our own in its place, that vast task of transform- 
ing the workers' minds will take a long time. And then, like 
all men or bodies of men who have given themselves heart and 
soul to a great cause, we have the virtues indispensable for pre- 
serving our enthusiasm patience and faith. I am not ashamed 
to say I am patient. Things do not move so quickly in this 
world. I know we want patience ; I have patience ; I have grown 
up in the patience that misery has forced upon me. The 
patience, which the bourgeoisie has given to me, I keep for our 
battle against it and for our future victory. The world must 
be ours we workers with brain or with hand ; and we say to 
the bourgeois, "You shall labour, or there shall be no room 
for you." They talk of revolution ; we are not such radical 
revolutionaries. We want but to change one word, one single 
qualifying one ; to change the system of the bourgeoisie into 
the system of the workers. That is all we want to do. And 
you cry out at a single word ! Yes, we want the system of the 
workers those who labour put in the place of those who are 
paid but do not labour. Our demand is as plain as " Good- 
morning ; " it is that in all factories and farms, on every ship, 
in every management, it should everywhere be the workers 
who through their delegates give the orders, the workers 
who make the law of nations and the law of workshops. 
For our attaining that, bless Co-operation. For the more I 
think of it, the more I see that Co-operation is forwarding 
the long-looked-for hour, when the kingdom of Socialism shall 
come. 



298 MODERN SOCIALISM 

See to-day : a church in every village, the people nowhere. 
There is a priest inside every church, but very often there is 
no school opposite. Well, beside every church, in every 
village, and in the quarters of the large towns, must rise a 
House of the People. 1 I should like to show our friends the 
anti-co-operative Socialists of France, who give it us so often 
and so hard, I should like to show them in prospect the photo- 
graphs of all those Houses of the People in the thousands 
and thousands of French villages. Do you know what would 
happen ? There would be no more contentions ; they would 
fall into each other's arms, ready to do battle once more. We 
saw that in Belgium. Yes, at Ghent, a town with 165,000 
inhabitants, we have five large premises. There are, I believe, 
twenty-five Catholic churches. And opposite them already, 
since 1873, nve Socialist churches. In twenty-seven years 
(the Catholics have been there centuries) we have done that. 
You see, we shall soon catch them up. 

Would it not be admirable to have in every quarter of 
Paris a beautiful large House of the People ; and one, too, in 
Thepossi- every commune in every department of France? 
bilities You would depend no longer on a cafe'-keeper, on 
thpcmgh 16 a proprietor, who thinks the right of lording it 
"Houses of ^ exists in every constitution, because his right of 
the People." p rO p ertv SU pp re sses all rights and all constitutions. 
Would it not be fine to organize in every co-operative society 
workmen's education a trade school for workmen, a trade 
school preparing the managers of production, distribution, 
and exchange in the future, when the bourgeois management 
of to-day shall have disappeared ? And what excellent results 
will be obtained in Houses of the People, where every hour, 
every minute, every second, all the vices and weaknesses of 
the poor are driven out, as some day all their enemies shall 
be. War on alcohol ! War on the spiritlessness of our own 
class ! War on all that makes us less good, less great, less 

1 The name given by the Belgian Socialists to their co-operative estab- 
lishments. 



E. ANSEELE 299 

human, that robust virtues may grow in the heart and head of 
every man and every woman. 

Yet another thing must be looked for from these trade 
schools. I will explain. Working for a master is sometimes 
very difficult, especially to satisfy him, because he Learnln 
stipulates for so many things. You remember to work 
Figaro's saying : " For the virtues which masters 
require in a servant, very few masters would be 
worthy of being one." Working for a master, then, is difficult. 
But for many workmen working without a master is still more 
difficult ; and that is what we must teach the workers how to 
work without a master. That is one of the reasons why in 
many trades co-operative production cannot succeed ; that is 
what we must get the proletarians to learn to master them- 
selves, to work of themselves, without having forced on them 
the will of an authority. 

What I am going on to say will, perhaps, draw down an 
uproar on my head. I shall say it all the same. I say there 
must be order in industry, order in the factory, discipline in 
labour ; the labourers must know that it is their duty to push 
on the production of all for the gain of all. If only every one 
had a character of intellectual and moral strength, strongly 
equipped with professional skill and abounding in energy ! 
But find me such a rare bird. Find the manager who can be 
employed in a productive co-operative society. Moral qualities 
and knowledge of the trade are his only means of influence 
there. Find me this paragon of a manager, and find a hundred 
of them combining all the superior qualities which make a 
man superior in his own place, which make him one of the 
smiths who shall hammer out the new world. Find me that 
in every village, every quarter, every trade. Alas, no; the 
working-class, we must say it out loud, has not yet reached 
that point as regards either personal qualities, technical know- 
ledge, or professional knowledge of trades. That is why the 
distributive co-operative societies, which help to form and 
support the productive ones, are of immense benefit and 



300 MODERN SOCIALISM 

service to the working-class education, which should impel 
the worker to work for himself, without a master and without 
fear. That is the great practical end of distributive co-opera- 
tion and of productive co-operation. 

And now they keep saying to us, " You will fail." That 
depends on what you are asking for. If you think I want by 

distributive and productive co-operation to solve 
Limits to 

possibilities the social question, you are strangely mistaken. I 

of Co-opera- know, my friends the anti-co-operative Socialists 
tion alone. , . . . r 

(who give it us so often and so cheerfully), that 

the co-operative societies will in vain realize all imagined 
advantages ; they will never have enough capital to buy out the 
whole fortune of the capitalists of to-day, to-morrow, and the 
day after. I know as well as you that the complete emanci- 
pation of the toilers is only possible by the expropriation 
(qualified or unqualified peaceful or violent with or without 
compensation) of all the means of production and exchange. 
I know all that. But it is irrelevant. Will your trade-unions 
alone conduct you to this end ? Will your political party alone, 
Great ad- w ^ out trade-unions or friendly societies, do so ? 
vantage of The real question is : Do Co-operation allied with 
Socialism and Socialism allied with Co-operation 
work for the hurt of the working-class or for its 
victory ? To that question I answer, " Yes," fully and boldly. 
" Yes, Co-operation is working for its victory." I say yes, 
because in Belgium Co-operation and Socialism combined have 
achieved wonders. I say yes, because there, where Co-opera- 
tion is so strong, you may say regarding purity of principles 
that the Belgian Labour party, to its honour, is as pure as the 
purest Labour party in the world. I say yes, because there in 
Belgium Co-operation does so well and presents no danger, and 
because there is no reason why it should not do as well 
amongst you. 

I do not want, you know, to force my tactics on you. 
Tactics depend on a thousand different conditions, which must 
be carefully looked at. All the same, my method has caught 



E. ANSEELE 301 

on in North France; and it pays for propaganda work. How 
would our comrades in the North get on without their co-opera- 
tive societies, especially at election times? I wish some day 
one of our friends, the anti-co-operative Socialists, would be 
present at one of our general meetings at Ghent. We had a 
few weeks ago ten thousand strikers among us, thousands of 
flax-spinners, and the carpenters' lock-out, and there was a 
general meeting at the " Vooruit." I was then, as you are now, 
sitting listening, and they were there in the hall, thousands 
upon thousands. They said : " You know, there's the strike" 
" Yes, yes " " That means money " " Of course it means 
money" "The Society will give something" "All you 
want," was the reply j " you have free course, you can use the 
chest as largely as you wish, according to circumstances." 
And after results like that, people come and say that Co-opera- 
tion lessens the Socialist spirit, the class-consciousness, the 
class-war, the spirit of revolution in the proletariate. How un- 
true ! And it is the same at Brussels, the same at Jolimont, at 
Lie'ge, at Bouvy ; go north, south, east, or west, you will every- 
where see big bakeries topped by the red flag. 

I am glad to be at Paris, this incomparable city, where I 
have enjoyed visiting your rich exhibition ; but above all the 
splendours I have seen something finer I have seen Socialists 
who, after a debate at the Co-operative Congress, have joined 
hands, embraced, and united in the sacred cause of the prole- 
tariate. That is finer than the exhibition. I saw when our friend 
Leonard, of Charleroi, had shown all that Socialist Co-operation 
in Belgium had achieved from the standpoint of our great 
ideal, I saw when Jaures contributed the keen insight of his 
deeply philosophic mind and the stirrings of his warm soul, 1 
saw the entire hall rise like one man, every arm meeting, in 
unity. Unity in the workers' cause ; unity for its triumph. 

And now go to work, my co-operative friends. Men will 
throw stones at you. Never mind ; they threw mud at me. 
A shake, and it falls off you. I believe, I am sure, that you 
are very much on the right road. Try to have practical 



302 MODERN SOCIALISM 

assemblies, family meetings like that which I have attended for 
the past few days at Paris. Try to let these meetings of com- 
rades shed the balm of brotherhood over the sore places of 
recent disputes, that at last unity may be brought among you ; 
and then the France of past ages will be once more what 
she should be the vanguard of the proletariate marching to 
win the world. 



XXI 

THE POLICY OF INDEPENDENT LABOUR 
BY J. KEI& HARDIE, M.P. 

These two articles illustrate the particular work in the Socialist 
movement which Mr. Keir Hardie has especially done. That of 
1894 seems worth reprinting, as showing the consistency with which 
he has advocated a view which is now far commoner among work- 
men than it was then. 

J. Keir Hardie was born in Scotland of working-class parents. 
He worked in the mines from his seventh to his twenty-fourth year, 
and in 1880 became Secretary of the Lanarkshire Miners' Union. 
He entered Parliament for West Ham in 1892, and in 1892-3 played 
a chief part in the birth of the Independent Labour party. He was 
defeated in West Ham in 1895, but in 1900 re-entered Parliament for 
Merthyr Tydvil. He took a chief part in forming the Labour 
Representation Committee, now the Labour Party, and in 1906 was 
chosen as its Leader in the House of Commons. 

I. CLEARING THE WAY. 
(Labour Leader, June 16, 1894.) 

THE question is frequently put to the Independent Labour 
party, why don't you unite your forces with the Radical 
party? It is pointed out that I.L.P. ism and Radicalism 
should make common cause against Whiggism; and that 
were this done, these two advanced sections would be 
practically masters of the situation. On the face of it there 
seems something to be said for this view of the matter. But 
it is double-sided. At present Radicals win elections for 
Liberalism, whereupon the Whig element in the party sets itself 

303 



304 MODERN SOCIALISM 

to exploit Radicalism for all it is worth. When Liberal 
Cabinets are being formed, the Whig party insists upon being 
the dominant party therein. If the Radicals attempt to 
dispute the supremacy of Whiggism, the Whigs threaten to 
go over to the Tories, and thus place Liberalism in a hopeless 
minority. This has gone on for a quarter of a century at least, 
and, so far as we can see at present, will go on for a long time 
again, unless something happens to bring it to an end. Now, 
the Radical party wish to use Labour men, as the Whigs 
hitherto have used the Radicals. The Whig cry to the 
Radicals has been, "Join with us to beat the Tories," and 
the Radicals, having accepted the invitation, found that they 
did the fighting, whilst the Whigs raked in the spoils of victory. 
Were the Independent Labour party to accept the invitations 
so plentifully showered upon it by the Radical party, a similar 
state of things would prevail. A much better way is that which 
the Independent Labour party has adopted to go straight on 
its own course, gathering strength as it goes, until men who pose 
as Radicals will be compelled to decide between Whiggism and 
I. L. P. ism. 

Besides, there is another aspect of the question. We are 
asked to come into the Radical ranks, and we may use the 
Radical party to further the objects we have in view. Much 
has been said and written in defence of this method ; and it is 
on this assumption that many men, who are as much in earnest 
as the most advanced I.L.P. er, still remain within the ranks 
of Liberalism. It does not seem to occur to those men that 
two can play at the game of having a party. And whilst 
they fondly believe that they are making use of Liberalism 
in the interests of Labour, the managers of the Liberal party 
are under the equally comfortable belief that they are using 
Liberalism in the interests of themselves. 

The struggle for supremacy between these two forces is 
very unequal. The minds of the workers are so engrossed in 
the struggle for a bare existence, that they have neither time 
nor opportunity for cultivating the commercial instincts. They 



J. KEIR HARDIE 305 

have no wealth wherewith to hire cunning lawyers to scheme 
and plan for them. They cannot offer posts of honour or 
emoluments to those who are their friends. At best, all they 
can say is, that those who are with them are serving humanity 
by their devotion to principle. On the other hand, there is 
wealth in abundance ever to command all the unscrupulous- 
ness which lays itself out for sale in the political as in the 
commercial world. Men whose whole life has been applied 
to develop their commercial instincts cunning lawyers, versed 
in the art of quibbling and making black appear white social 
position, and distinction as reward for those who serve the 
party faithfully, and above and beyond all, a pecuniary interest 
in preventing the people seeing that the private ownership of the 
wealth possessed by the privileged class is at the root of every 
social injustice. It is not difficult to foresee the outcome when 
these two sections are endeavouring each to best the other. 
And it makes one incredulous when one hears Labour men 
boast that they are using, or are going to use, Liberalism to 
achieve Labour reforms. The spectacle of a small community 
of kids in the midst of a horde of wolves, comforting them- 
selves with the belief that they were about to use the wolves 
for their own advantage, would not be more absurd. 



II. FEDERATED LABOUR AS A NEW FACTOR IN BRITISH 
POLITICS. 

(North American Review, August, 1903.) 

The Independent Labour party is a Socialist, and not, as its 
title might seem to imply, a purely working-class organization. 
It aims at the creation of a Co-operative Commonwealth, 
founded upon the socialization of land and capital. Its methods 
of realizing its objects are, to educate the community in the 
principles of Socialism and to secure the return to Parliament 
and to all elected bodies of members representative of its 
principles, Since its formation in 1893, it has been regarded 

X 



306 MODERN SOCIALISM 

as the stormy petrel of politics, and has kept itself well in 
evidence mainly by running its own candidates and by 
missionary zeal and activity. The actual paying membership 
of the party is returned at 13,000, including a fair proportion 
of the educated and well-to-do classes who see in Socialism the 
only hope for solving the social problem. The yearly income 
of the party averages ^25,000. As the bulk of this comes 
from the wage-earning classes, and as the payments are purely 
voluntary, this sum argues a considerable degree of sincerity. 
In addition to the regular membership named above, the party 
commands the active political support of that very large and 
rapidly growing section of the community which has lost faith 
in the Liberal party as an effective instrument of reform. The 
energies of its members are tireless, and its political ' resources 
are apparently inexhaustible. It is a standing illustration of 
the truth of John Stuart Mill's axiom, that in politics one man 
with convictions is equal to ninety-nine men who have only 
interests. 

Prior to 1893 there had been no sustained effort to create 
a Labour party in Britain. In the early sixties the old 
International Working Men's Association promised for a time 
to become a power, but it went down under the Continental 
influence by which it was dominated. During the seven 
years ending 1874 there was great political activity among 
trade-unionists, who were at that time endeavouring to secure 
full legal recognition for their organizations. The effort 
culminated with the running of seventeen Labour candidates 
at the General Election in the year named and the defeat of 
the Liberal party. The year following saw the passing 
of the Bills which secured full recognition to the trade- 
union movement; and, the object aimed at having thus 
been gained, the leaders of the movement lapsed back into 
the ranks of their ordinary political allegiance, and there the 
matter ended. 

Nothing more was done until 1887, when the Labour 
Electoral Association came into being. It succeeded in 



J. KEIR HARDIE 307 

existing, in struggling fashion, for a few short years, and then 
collapsed, without leaving any indication of its ever having 
been. At that time there was considerable ferment in the 
Labour world, and the Labour Electoral Association, with its 
half-hearted policy, alienated the support of the active spirits 
by its feverish anxiety not to offend orthodox political opinion. 

Somewhere about 1880, William Morris and H. M. 
Hyndman commenced their Socialist propaganda; and the 
Social Democratic Federation, modelled largely on the lines of 
' the German organization of that name, was formed, and for 
a time enlisted in its ranks most of the men who have since 
become powerful in connection with Labour politics. But it 
failed to hold them. William Morris withdrew and formed the 
Socialist League, and John Burns and others of equal standing 
left, owing to disagreement with the tactics which were being 
pursued. 

The great Dock Strike of 1888 may be taken as the 
starting-point of the new Labour movement, as, with the single 
exception of John Burns, all the men who came to the surface, 
during that conclusive period were subsequently identified with, 
the inception and propaganda work of the Independent Labour 
party. At the General Elections of 1892 a number of Labour 
candidates were run by local organizations in various parts 
of the country ; and, the year following, at a conference held 
in Bradford in Yorkshire, at which one hundred and twenty 
representatives of various Labour and Socialist organizations 
attended, the Independent Labour party was definitely launched, 
>and entered upon its career. 

At that time the Liberal party was in office, with a small 
and precarious majority. Trade was much depressed, and tens 
of thousands of workmen were roaming the country in fruitless 
search for employment. As is usual at elections, great hopes 
and expectations had been formed as to what would happen if 
the Liberals were returned. In the very nature of things, it 
was impossible that these hopes could be realized ; and as the 
months slipped into years, enthusiastic Radicals, finding that 



3 o8 MODERN SOCIALISM 

their party in office was apparently as unable or as unwilling 
to do anything effective for Labour as their Conservative 
opponents had been, deserted in thousands and cast in their 
lot with the newly formed Independent Labour party. At 
every by-election in an industrial centre the Independent 
Labour party ran a candidate, with results which surprised 
friends and opponents alike. In only one case did the Labour 
candidate come within measurable distance of winning ; but in 
every case the number of votes polled showed the strength of 
the feeling of discontent which existed in the constituencies. 
In those days the hand of every man was against the Indepen- 
dent Labour party, which had dared to set itself in opposition 
to the cherished political traditions of the nation. The press, 
the pulpit, and the platform fulminated and stormed against 
the new movement ; whilst the usual misrepresentations and 
silly inventions were freely indulged in, and, of course, as freely 
believed. The party, however, held on its way unswerving. 
Its members were enthusiasts, but not mere theorists ; there was 
always a method behind their apparent madness. Inspired by 
a Socialist ideal, they yet managed to keep their feet firm on 
solid earth ; and the politicians learned that the British work- 
man, despite his well-known proclivities, could be a practical 
kind of idealist when properly led. At the General Election of 
1895 the party ran twenty-eight candidates of its own, every one 
of whom, including the present writer, was defeated. As showing 
the state of feeling at that time, I may remark, in passing, that 
the return of my Conservative opponent was announced, at 
the National Liberal Club, as a Liberal triumph. The In- 
dependent Labour party vote represented just under thirty 
per cent, of the electoral strength in those constituencies which 
its candidates had contested. In 1900 we had the Khaki 
election, when, despite the fact that all its candidates were 
Pro-Boers, and as such anathema to every " patriotic " voter, 
the party vote showed a largely increased following, and in one 
case my own won a seat from a Liberal who had given an 
enthusiastic support to the war in South Africa. 



J. KEIR HARDIE 309 

Up to this stage, 1900, the idea of seeking to create a 
Labour party had, in the main, been confined to the ranks of 
the Independent Labour party. Where a trade-union had 
sought representation in Parliament, the candidate was put 
forward as a working-man Liberal or Conservative, as the case 
might be. Recent events, however, chiefly the decisions of 
the law courts in trade-union cases, have led to a new and 
startling development. The trade-unions have practically cut 
themselves adrift from their old political moorings, and they 
are heading direct for the open sea of Labour representation 
and a Labour party. I have already indicated how the Houses 
of Parliament gave full recognition and legal standing to the 
trade-unions. For close upon thirty years the law was 
assumed to regard trade-unions as voluntary organizations, in 
the nature of clubs, which could neither sue nor be sued, and 
as not being entities known to the law, since they were not 
an individual, a corporation, or a company. Picketing, it was 
assumed, had also been fully legalized, including the power to 
"peacefully persuade" men to abstain from working. The 
strike in all its phases, it was supposed, had been legalized. 
The decisions of the law courts in recent cases have upset 
these suppositions. Employers of labour have been able to sue 
trade-unions as such and obtain damages from the funds, in 
one case amounting to ,23,000 for the alleged illegal acts of 
the union officials. Peaceful persuasion whilst picketing has 
been held to be clearly illegal, rendering the pickets liable to 
imprisonment ; whilst the sympathetic strike has been once 
again brought within the definition of the common law of 
conspiracy. These facts have naturally alarmed the trade- 
unionists and forced them into the political arena. With the 
very existence of trade-unions imperilled, they instinctively 
feel that they cannot trust either of the political parties to see 
justice done them. 

For years past the feeling in favour of a direct Labour 
party has been making steady headway within the trade-union 
movement, but it was held in check by the fact that the ranks 



3 io MODERN SOCIALISM 

were about equally divided in their allegiance to the Liberal 
and Conservative parties. Many of the leaders of the unions, 
on the other hand, had been brought into political conflict 
with the militant spirits of the Independent Labour party, 
and, as a consequence, were none too well disposed towards 
that movement. To the onlooker, the result seemed to be a 
tangle, escape from which was almost hopeless. Where the 
will exists, however, the way will usually be found ; and so, 
when legal necessity compelled the trade-unionists to face 
the situation, they resolved, at their annual congress in 1889, to 
call an open conference of representatives of Trade-Unionism, 
Socialism, and Co-operation, to consider what means could be 
devised for securing more adequate representation of Labour 
interests in the House of Commons. The conference was held, 
and what has since been known as the Labour Representa- 
tion Committee 1 came into existence. Perhaps its objects will 
best be denned by quoting from its constitution, as amended 
by the annual meeting this year : 

" i. The Labour Representation Committee is a Federation of 
Trades-Unions, Trades- Councils, the Independent Labour party, 
and the Fabian Society. Co-operative Societies are also eligible 
for membership. 

" Object 2. To secure, by united action, the election to Parlia- 
ment of candidates promoted, in the first instance, by an Affiliated 
Society or Societies in the constituency, who undertake to form or 
join a distinct group in Parliament, with its own whips and its own 
policy on Labour questions, to abstain strictly from identifying 
themselves with or promoting the interests of any section of the 
Liberal or Conservative party, and not to oppose any other candi- 
date recognized by this Committee. All such candidates shall 
pledge themselves to accept this constitution, to abide by the 
decisions of the Group in carrying out the aims of this constitu- 
tion or to resign, and to appear before their constituencies under 
the title of Labour candidates only. 

The Labour Representation Committee is financed by each 
affiliated organization, paying ten shillings for each thousand 

1 In 1906 its name was altered to *' The Labour Party." 



J. KEIR HARDIE 311 

members. This is for working expenses. In addition, there 
is a Payment of Members fund, to which each affiliated 
organization contributes one penny per member per annum^ 
and from which it is expected each member returned to Parlia- 
ment, under the auspices of the Committee, will be paid ^"200 
a year. 

That the time was ripe for this new movement is fully 
evidenced by the fact, that in England and Wales Scotland 
having a separate organization over 900,000 trade-unionists 
are now affiliated. The movement, as stated above, is a 
federation, the basis of which is, that each affiliated organization 
shall finance its own candidates and become responsible for 
their maintenance if returned to Parliament, each, however, com- 
bining with the others to secure the return of their respective 
nominees. Thus far, a considerable amount of success has 
attended the new movement. Since the General Election, it 
has fought four Parliamentary vacancies, two of its candidates 
being successful and the other two just missing success. From 
the outset it has assumed an attitude of rigid independence 
towards the orthodox parties, with surprising results. The 
Conservative working-men and their liberal fellows are finding 
in the new movement a platform upon which they stand whilst 
working for the realization of an object common to both the 
protection of their unions and the promotion of their interests 
as wage-earners. The financial difficulty, which at one time 
bulked so large when the question of Labour representation 
was being considered, has been solved by a contribution of 
one shilling per member per annum to a Labour Representation 
Fund. By this means an annual income of not less than 
^"50,000 has been secured. All the principal trade-unions 
have selected candidates, and these are being eagerly sought 
after by industrial constituencies. The National Liberal 
Federation, at its annual meeting a few weeks ago, fully 
recognized the strength and importance of this new develop- 
ment in Labour politics, and practically advised Liberal Associa- 
tions in industrial constituencies to stand aside in favour of 



3 i2 MODERN SOCIALISM 

Labour nominees when these were put forward. Unless the 
election be rushed, it is a safe estimate that not less than fifty 
Labour candidates will enter the lists at the next General 
Election, under the auspices of the Labour Representation 
Committee, a fair proportion of whom are certain to be re- 
turned. They will not all be Socialists, but they will all be 
Labour members pledged to the formation of a Labour 
party in the House of Commons, and to the raising of 
the Condition of the People question as a distinct political 
issue. 

Circumstances are favourable to the development of the 
new movement. Apart from the trade-union demands, 
already referred to, wider issues of greater importance are 
being opened up daily. The questions of the hour are no 
longer political, but industrial and economic. The growth of 
the trusts, the precariousness of employment, the increased 
cost of living, and the growing desire on the part of the work- 
ing-class for a larger share in the prosperity of the nation, are 
all tending to foment a spirit of unrest. Nor is this to be 
wondered at. On every hand there is evidence of a surplus- 
age of wealth, in which the worker has little share. If there 
has been a slight increase in wages, there has also been an 
increase in house-rent and in certain articles of food, which 
has more than redressed the balance. In the staple industries 
of the country broken time has become almost chronic ; and, 
whilst this does not diminish the nominal weekly wage, it plays 
sad havoc with the actual income. Even for the well-to-do 
artisan, therefore, there is much in his lot of which he has 
good reason to complain. It does not help him at all to be 
told that the wealth of the nation is growing at an unprece- 
dented rate ; that last year the income of the rich, as shown by 
the income-tax returns, was ^40,000,000 in excess of the 
previous year; or that in five years the revenue brought to 
the exchequer from a penny rate on incomes of .160 and 
upwards has gone up by ^600,000, or from ^2,000,000 to 
,2,600,000. This may be evidence of national prosperity; 



J. KEIR HARDIE 313 

but, as an individual, the wage-earner does not feel any the 
richer, nor is his lot in life made any the more easy. 

When we leave the skilled artisan, however, we begin to 
sound an unfathomable depth of poverty. Wages of agricul- 
tural labourers are returned by the Government as averaging, 
for the whole of England and Wales, thirteen shillings and 
eightpence per week. Out of this miserable pittance house- 
rent has to be paid and a family maintained. Only in very 
rare instances is the agricultural labourer permitted to eke out 
this sum by the cultivation of a little plot of land. The farmers, 
who have the control of the machinery by which the Allotments 
Act could be put into operation, are strangely averse to giving 
their labourers opportunities for improving their condition. 
There are those who argue in favour of a protective duty on 
corn, as a means of enabling the farmer to pay his labourer 
better wages; but these are forgetful of the fact that, in the 
days of high protection in England, the agricultural wages 
were little over half what they are now, and that, in common 
with other workers, the labourer's lot, in so far as it has im- 
proved, has done so under the operation of Free Trade. It is 
not alone the agricultural labourer who is living on the verge 
of starvation all the year round. Recent investigations, con- 
ducted by merchant princes like Mr. Charles Booth in London, 
and Mr. Seebohm Rowntree in York, the results of which have 
been since given to the world with a wealth of detailed evidence 
which permits of no dubiety as to the conclusions, prove that 
close upon thirty per cent, of the working-class are not in 
receipt of sufficient income to enable them to obtain, for 
themselves and their dependents, the standard of comfort 
which they would receive as paupers in the poor-house or as 
criminals in gaol. This fact has startled and alarmed people. 
The comfortable theory that formerly existed, that, but for 
drunkenness and want of thrift, the working-class would all 
be contented, prosperous, and happy, has been shivered to 
atoms; and, for the first time in her long career of self- 
delusion, England has been brought face to face with the fact 



3H MODERN SOCIALISM 

that, despite her world-wide trade, her unparalleled wealth and 
prosperity, her growing bounds of empire and her political, 
mechanical, and intellectual progress, there is at the foundation 
of her society an amount of misery and destitution, due to low 
wages, which casts a dark shadow over the whole national life, 
and shows how insecure are the foundations upon which the 
whole structure of her wealth has been raised. Sir Henry 
Campbell-Bannerman, the leader of the Liberal party, in a recent 
speech, declared his belief that twelve millions of our population 
were always living at or under the poverty line. In plain lan- 
guage, this means that twelve millions of the British people are 
improperly fed, insufficiently clothed, and inadequately housed. 
The Census returns tells us that 480,277 houses of one room 
are registered in England, Scotland, and Wales, and that these 
contain a living population of 1,571,504. From one , to two 
rooms is a very short step in the social scale ; but, on the same 
authority from which we have just quoted, we learn that forty- 
four per cent, of the people in Scotland are accommodated in 
houses of one or two rooms. Speaking with a good deal of 
practical experience, I assert that, in three cases out of five, 
the householder of two rooms will be found to be indulging in 
one or two lodgers, from which it follows that a worse form of 
overcrowding occurs than when there is only one apartment 
With this condition of things staring them in the face, with 
no hope perceivable of any improvement, there is little wonder 
that the more thoughtful leaders of the working-class have 
made up their minds to see how far a Labour party can be 
instrumental in securing reform. Many of them, although 
not all, accept Socialism as being not only inevitable but 
desirable. They reason that, if commercialism, in the hey- 
day of its prosperity, and with the markets of the world at 
its unchallenged disposal, has produced such results as those 
indicated above, it has little chance, now that it has passed 
its zenith and is being faced with the ever-increasing compe- 
tition from other countries, to succeed in the future where 
it has failed in the past. To men who are Socialists, an 



J. KEIR HARDIE 315 

Independent Labour party is a logical outcome of their 
economic faith. 

But even those trades-union readers who are not Socialists 
and there are many are equally convinced of the necessity 
of the new departure. The break-up of the Liberal party has 
been an important influence in leading them to this position. 
Free Trade, despite Mr. Chamberlain, is at present the 
accepted creed of both great parties. On the subject of 
Imperial expansion, there is little to choose between the two 
sides; and it is doubtful whether, even with the Liberals in 
office, the military and naval expenditure, which in a dozen 
years has gone up from ^28,000,000 to ^70,000,000 a year, 
would be materially lessened. There is no evidence whatever 
that either party has the remotest idea of how to grapple with 
the social problem and remove poverty from the land. Added 
to all this, there is a growing feeling that the interests of Labour 
cannot be adequately safeguarded or protected until there is 
a Labour party charged with that particular responsibility. 
Therefore it is that all true trades-union leaders who are not 
Socialists are equally determined to wean Labour from its 
political dependence on some other party, and to place it in a 
position where it can formulate its own demands. These men 
see how, in twenty years, an Independent Irish party has 
succeeded in convincing, not merely the Liberals, but also the 
Conservatives, of the justice of their claims. The Irish Land 
Bill now before the House of Commons, pledging the credit 
of the State to the extent of hundreds of millions of money to 
enable the Irish farmer to buy out his landlord, is a standing 
evidence of what can be done by an independent and resolute 
party, knowing its own mind and acting entirely in the interests 
of the classes it represents, and Labour leaders are determined 
to make an effort to copy this example. 

To conclude, the British working-man is for the movement, 
thoroughly in earnest about the formation of a Labour 
party, and he will not be easily turned aside from his purpose. 
He is realizing as he has never done before, that, with 



316 MODERN SOCIALISM 

seven-tenths of the voting power in his hands, he is master of 
the political situation. With a party of his own, he will play 
an ever-increasing part in the great drama of politics, and 
be less easily led than heretofore by the charlatan and the 
office-seeker. 



XXII 

PROGRAMME OF THE GERMAN SOCIAL 
DEMOCRATIC PARTY 

Voted at the Erfurt Conference, 1891. 

THE economic development of bourgeois society leads by 
natural necessity to the downfall of the small industry, whose 
foundation is formed by the workers' private ownership of his 
means of production. It separates the worker from his means 
of production, and converts him into a propertyless proletarian, 
while the means of production become the monopoly of a 
relatively small number of capitalists and large landowners. 

Hand-in-hand with this monopolization of the means of 
production goes the displacement of the dispersed small 
industries by colossal great industries, the development of the 
tool into the machine, and a gigantic growth in the productivity 
of human labour. But all the advantages of this transforma- 
tion are monopolized by capitalists and large landowners. For 
the proletariate and the declining intermediate classes petty 
bourgeoisie and peasants it means a growing augmentation 
of the insecurity of their existence, of misery, oppression, 
enslavement, debasement, and exploitation. 

Ever greater grows the number of proletarians, ever more 
enormous the army of surplus workers, ever sharper the oppo- 
sition between exploiters and exploited, ever bitter the class- 
war between bourgeoisie and proletariate, which divides modern 

317 



318 MODERN SOCIALISM 

society into two hostile camps, and is the common hall-mark 
of all industrial countries. 

The gulf between the propertied and the propertyless is 
further widened through the crises, founded in the essence of 
the capitalistic method of production, which constantly become 
more comprehensive and more devastating, which elevate 
general insecurity to the normal condition of society, and 
which prove that the powers of production of contemporary 
society have grown beyond measure, and that private owner- 
ship of the means of production has become incompatible 
with their application to their objects and their full develop- 
ment. 

Private ownership of the means of production, which was 
formerly the means of securing to the producer the ownership 
of his product, has to-day become the means of expropriating 
peasants, manual workers, and small traders, and enabling the 
non-workers capitalists and large landowners to own the 
product of the workers. Only the transformation of capitalistic 
private ownership of the means of production the soil, mines, 
raw materials, tools, machines, and means of transport into 
social ownership, and the transformation of production of goods 
for sale into Socialistic production managed for and through 
society, can bring it about, that the great industry and the 
steadily growing productive capacity of social labour shall for 
the hitherto exploited classes be changed from a source of 
misery and oppression to a source of the highest welfare and 
of all-round harmonious perfection. 

This social transformation means the emancipation not 
only of the proletariate, but of the whole human race which 
suffers under the conditions of to-day. But it can only be 
the work of the working-class, because all the other classes, in 
spite of mutually conflicting interests, take their stand on the 
basis of private ownership of the means of production, and 
have as their common object the preservation of the principles 
of contemporary society. 

The battle of the working-class against capitalistic exploitation 



GERMAN SOCIAL DEMOCRATIC PROGRAMME 319 

is necessarily a political battle. The working-class cannot 
carry on its economic battles or develop its economic organiza- 
tion without political rights. It cannot effect the passing of 
the means of production into the ownership of the community 
without acquiring political power. 

To shape this battle of the working-class into a conscious 
and united effort, and to show it its naturally necessary end, is 
the object of the Social Democratic party. 

The interests of the working-class are the same in all lands 
with capitalistic methods of production. With the expansion 
of world-transport and production for the world-market the 
state of the workers in any one country becomes constantly 
more dependent on the state of the workers in other countries. 
The emancipation of the working-class is thus a task in which 
the workers of all civilized countries are concerned in a like 
degree. Conscious of this, the Social Democratic party of 
Germany feels and declares itself one with the class-conscious 
workers of all other lands. 

The Social Democratic party of Germany fights thus not 
for new class-privileges and exceptional rights, but for the 
abolition of class-domination and of the classes themselves, and 
for the equal rights and equal obligations of all, without dis- 
tinction of sex and parentage. Setting out from these views, it 
combats in contemporary society not merely the exploitation 
and oppression of the wage-workers, but every kind of exploita- 
tion and oppression, whether directed against a class, a party, 
a sex, or a race. 

Setting out from these principles, the Social Democratic 
party of Germany demands immediately 

i. Universal equal direct suffrage and franchise, with direct 
ballot, for all members of the Empire over twenty years of age, 
without distinction of sex, for all elections and acts of voting. 
Proportional representation ; and until this is introduced, re- 
division of the constituencies by law according to the numbers 
of population. A new Legislature every two years. Fixing of 
elections and acts of voting for a legal holiday. Indemnity 



320 MODERN SOCIALISM 

for the elected representatives. Removal of every curtailmen 
of political rights except in case of tutelage. 

2. Direct legislation by the people by means of the initia- 
tive and referendum. Self-determination and self-government 
of the people in empire, state, province, and commune. 
Authorities to be elected by the people ; to be responsible and 
bound. Taxes to be voted annually. 

3. Education of all to be capable of bearing arms. Armed 
nation instead of standing army. Decision of war and peace 
by the representatives of the people. Settlement of all inter- 
national disputes by the method of arbitration. 

4. Abolition of all laws which curtail or suppress the free 
expression of opinion and the right of association and assembly. 

5. Abolition of all laws which are prejudicial to women in 
their relations to men in public or private law. 

6. Declaration that religion is a private matter. Abolition 
of all contributions from public funds to ecclesiastical and 
religious objects. Ecclesiastical and religious communities are 
to be treated as private associations, which manage their affairs 
quite independently. 

7. Secularization of education. Compulsory attendance of 
public primary schools. No charges to be made for instruc- 
tion, school requisites, and maintenance, in the public primary 
schools ; nor in the higher educational institutions for those 
students, male and female, who in virtue of their capacities are 
considered fit for further training. 

8. No charges to be made for the administration of the 
law, or for legal assistance. Judgment by popularly elected 
judges. Appeal in criminal cases. Indemnification of inno- 
cent persons prosecuted, arrested, or condemned. Abolition 
of the death-penalty. 

9. No charges to be made for medical attendance, includ- 
ing midwifery and medicine. No charges to be made for 
death certificates. 

10. Graduated taxes on income and property, to meet all 
public expenses as far as these are to be covered by taxation, 



GERMAN SOCIAL DEMOCRATIC PROGRAMME 321 

Obligatory self-assessment. A tax on inheritance, graduated 
according to the size of the inheritance and the degree of 
kinship. Abolition of all indirect taxes, customs, and other 
politico-economic measures which sacrifice the interests of the 
whole community to the interests of a favoured minority. 

For the protection of the working-class the Social Demo- 
cratic party of Germany demands immediately 

1. An effective national and international legislation for the 
protection of workmen on the following basis : 

(a) Fixing of a normal working- day with a maximum of 
eight hours. 

(b) Prohibition of industrial work for children under 
fourteen years. 

(c) Prohibition of night-work, except for such branches of 
industry as, in accordance with their nature, require night- work, 
for technical reasons, or reasons of public welfare. 

(d) An uninterrupted rest of at least thirty-six hours in 
every week for every worker. 

(e) Prohibition of the truck system. 

2. Inspection of all industrial businesses, investigation and 
regulation of labour relations in town and country by an 
Imperial Department of Labour, district labour departments, 
and chambers of labour. Thorough industrial hygiene. 

3. Legal equalization of agricultural labourers and domestic 
servants with industrial workers ; removal of the special regula- 
tions affecting servants. 

4. Assurance of the right of combination. 

5. Workmen's insurance to be taken over bodily by the 
Empire; and the workers to have an influential share in its 
administration. 

6. Separation of the Churches and the State. 

(a) Suppression of the grant for public worship. 

(b) Philosophic or religious associations to be civil persons 
at law. 

7. Revision of sections in the Civil Code concerning 
marriage and the paternal authority. 



322 MODERN SOCIALISM 

(a) Civil equality of the sexes, and of children, whether 
natural or legitimate. 

(b) Revision of the divorce laws, maintaining the husband's 
liability to support the wife or the children. 

(c) Inquiry into paternity to be legalized. 

(d) Protective measures in favour of children materially or 
morally abandoned. 



XXIII 

PROGRAMME OF THE BELGIAN LABOUR 
PARTY 

Voted at Brussels, 1893, this programme is two years later than 
that of the German Social Democrats. The Declaration of Principles 
is, perhaps, the most perfect in form and moderate in statement to 
be found among those of the last century. The three programmes 
following it are notable for their superior arrangement, their inclusion 
of what amounts to an agrarian programme, and many minor points 
of originality, e.g. Political Programme 2b and 3C. 

Cesar de Paepe, the first great apostle and theorist of Socialism 
in Belgium, died in 1890. The Belgian Labour party was founded 
under his auspices in 1885. A revision of the franchise in 1893, 
following a general strike, enabled it to send 30 deputies to the 
Chamber. After the partial election of May, 1906, its deputies 
numbered 31 out of 160*. 

DECLARATION OF PRINCIPLES. 

i. THE constituents of wealth in general, and in particular 
the means of production, are either natural agencies or the fruit 
of the labour manual and mental of previous generations 
besides the present ; consequently they must be considered the 
common heritage of mankind. 

2. The right of individuals or groups to enjoy this heritage 
can be based only on social utility, and aimed only at securing 
for every human being the greatest possible sum of freedom 
and well-being. 

3. The realization of this ideal is incompatible with the 
maintenance of the capitalistic regime ', which divides society 

323 



324 MODERN SOCIALISM 

into two necessarily antagonistic classes the one able to enjoy 
property without working, the other obliged to relinquish a 
part of its product to the possessing class. 

4. The workers can only expect their complete emancipa- 
tion from the suppression of classes and a radical transforma- 
tion of existing society. 

This transformation will be in favour, not only of the pro- 
letariate, but of mankind as a whole ; nevertheless, as it is 
contrary to the immediate interests of the possessing class, the 
emancipation of the workers will be essentially the work of the 
workers themselves. 

5. In economic matters their aim must be to secure the free 
use, without charge, of all the means of production. This 
result can only be attained, in a society where collective 
labour is more and more replacing individual labour, by the 
collective appropriation of natural agencies and the instruments 
of labour. 

6. The transformation of the capitalistic regime into a 
collectivist rtgime must necessarily be accompanied by corre- 
lative transformations 

(a) In morals, by the development of altruistic feelings and 
the practice of solidarity. 

(b) In politics^ by the transformation of the State into a 
business management (administration des choses). 

7. Socialism must, therefore, pursue simultaneously the 
economic, moral, and political emancipation of the proletariate. 
Nevertheless, the economic point of view must be paramount, 
for the concentration of capital in the hands of a single class 
forms the basis of all the other forms of domination. 

To realize its principles the Labour party declares 

(1) That it considers itself as the representative, not only of 
the working-class, but of all the oppressed, without distinction 
of nationality, worship, race, or sex. s 

(2) That the Socialists of all countries must make common 
cause (etre solidaires}^ the emancipation of the workers being 
not a national, but an international work. 



PROGRAMME OF BELGIAN LABOUR PARTY 325 

(3) That in their struggle against the capitalist class the 
workers must fight by every means in their power, and par- 
ticularly by political action, by the development of free 
associations, and by the ceaseless propagation of Socialistic 
principles. 

I. POLITICAL PROGRAMME. 

1. Electoral reform. 

(a) Universal suffrage without distinction of sex for all ranks 
(age-limit, twenty-one ; residence, six months). 

(b) Proportional representation. 1 

(c) Election expenses to be charged on the public 
authorities. 

(d) Payment of elected persons. 

(<?) Elected persons to be bound by pledges, according to 
law. 

(/) Electorates to have the right of unseating elected 
persons. 

2. Decentralization of political power, 

(a) Suppression of the Senate. 

(b) Creation of Legislative Councils, representing the 
different functions of society (industry, commerce, agriculture, 
education, etc.) ; such Councils to be autonomous, within the 
limits of their competence and excepting the veto of Parlia- 
ment ; such Councils to be federated, for the study and defence 
of their common interests. 

3. Communal autonomy. 

(a) Mayors to be appointed by the electorate. 

(b) Small communes to be fused or federated. 

(c) Creation of elected committees corresponding to the 
different branches of communal administration. 

4. Direct legislation. 

Right of popular initiative and referendum in legislative 
provincial, and communal matters. 

1 Secured in 1899 by popular pressure on the Government. 



326 MODERN SOCIALISM 

5. Reform of education. 

(a) Primary, all-round, free, secular, compulsory instruction 
at the expense of the State. Maintenance of children attending 
the schools by the public authorities. Intermediate and higher 
instruction to be free, secular, and at the expense of the State. 

(b) Administration of the schools by the public authorities, 
under the control of School Committees elected by universal 
suffrage of both sexes, with representatives of the teaching staff 
and the State. 

(c) Assimilation of communal teachers to the State's 
educational officials. 

(d) Creation of a Superior Council of Education, elected by 
the School Committees, who are to organize the inspection and 
control of free schools and of official schools. 

(<?) Organization of trade education, and obligation of all 
children to learn manual work. 

(f) Autonomy of the State Universities, and legal recogni- 
tion of the Free Universities. University Extension to be 
organized at the expense of the public authorities. 

6. Separation of the Churches and the State. 

(a) Suppression of the grant for public worship. 

(b) Philosophic or religious associations to be civil persons 
at law. 

7. Revision of Sec f ions in the Civil Code concerning marriage 
and the paternal authority. 

(a) Civil equality of the sexes, and of children, whether 
natural or legitimate. 

(b) Revision of the divorce laws, maintaining the husband's 
liability to support the wife or the children. 

(c) Inquiry into paternity to be legalized. 

(d) Protective measures in favour of children materially or 
morally abandoned. 

8. Extension of liberties. 1 

Suppression of measures restricting any of the liberties. 

i The liberties referred to are freedom of the person, of speech, of the 
press, of public meeting, etc. 



PROGRAMME OF BELGIAN LABOUR PARTY 327 

9. Judicial reform. 

(a) Application of the elective principle to all jurisdictions. 
Reduction of the number of magistrates. 

(b) Justice without fees; State-payment of advocates and 
officials of the Courts. 

(c) Magisterial examination in penal cases to be public. 
Persons prosecuted to be medically examined. Victims of 
judicial errors to be indemnified. 

10. Suppression of armies. 

Provisionally ; organization of a national militia. 

11. Suppression of Iiereditary offices ; and establishment of a 
Republic, 

II. ECONOMIC PROGRAMME. 

A. General Measures. 

1. Organization of statistics. 

(a) Creation of a Ministry of Labour. 

(b) Pecuniary aid from the public authorities for the 
organization of labour secretariates by workmen and 
employers. 

2. Legal recognition of associations, especially 

(a) Legal recognition of trade-unions. 1 

(b) Reform of the law on friendly societies and co-opera- 
tive societies and subsidy from the public authorities. 

(c) Repression of infringements of the right of combina 
tion. 

3. Legal regulation of the contract of employment. 
Extension of laws protecting labour to all industries, and 

specially to agriculture, shipping, and fishing. Fixing of a 
minimum wage and maximum of hours of labour for workers, 
industrial or agricultural, employed by the State, the Com- 
munes, the Provinces, or the contractors for public works. 
Intervention of workers, and especially of workers' unions, 

1 Syndicats professionnds^ including unions of employers as well as of 
employed. 



328 MODERN SOCIALISM 

in the framing of rules. Suppression of fines. Suppression 
of savings-banks and benefit clubs in workshops. Fixing 
of a maximum of 6000 francs for public servants and 
managers. 

4. Transformation of public charity into a general insurance 
of all citizens 

(a) against unemployment ; 

(b) against disablement (sickness, accident, old age) ; 

(c) against death (widows and orphans). 

5. Reorganization of public finances. 

(a) Abolition of indirect taxes, especially taxes on food 
and customs tariffs. 

(If) Monopoly of alcohol and tobacco. 

(c) Progressive income-tax. Taxes on legacies and gifts 
between the living (excepting gifts to works of public 
utility). 

(d) Suppression of intestate succession, except in the 
direct line and within limits to be determined by law. 

6. Progressive extension of public proper fy. 

The State to take over the National Bank. Social organi- 
zation of loans, at interest to cover costs only, to individuals 
and to associations of workers, 
i. Industrial property. 

Abolition, on grounds of public utility, of private 
ownership in mines, quarries, the subsoil generally, 
and of the great means of production and trans- 
port, 
ii. Agricultural property. 

(a) Nationalization of forests. 

(b) Reconstitution or development of common lands. 

(c) Progressive taking over of the land by the State 

or the communes. 

7. Autonomy of public services. 

(a) Administration of the public services by special 
autonomous commissions, under the control of the State. 

(b) Creation of committees elected by the workmen and 



PROGRAMME OF BELGIAN LABOUR PARTY 329 

employes of the public services to debate with the central 
administration the conditions of the remuneration and organi- 
zation of labour. 



B. Particular Measures for Industrial Workers. 

1. Abolition of all laws restricting the right of combina- 
tion. 

2. Regulation of industrial labour. 

(a) Prohibition of employment of children under fourteen. 

(b) Half-time system between the ages of fourteen and 
eighteen. 

(c) Prohibition of employment of women in all industries 
where it is incompatible with morals or health. 

(d) Reduction of working-day to a maximum of eight 
hours for adults of both sexes, and minimum wage. 

(e) Prohibition of night-work for all categories of workers 
and in all industries, where this mode of working is not abso- 
lutely necessary. 

(f) One day's rest per week, so far as possible on 
Sunday. 

(l?) Responsibility of employers in case of accidents, and 
appointment of doctors to attend persons wounded. 

(//) Workmen's memorandum-books and certificates to be 
abolished, and their use prohibited. 

3. Inspection of work. 

(a) Employment of paid medical authorities, in the interests 
of labour hygiene. 

(b) Appointment of inspectors by the Councils of Industry 
and Labour. 

4. Reorganization of the Industrial Tribunals (Conseils de 
Prud'hommes) and the Councils^of Industry and Labour. 

(a) Working women to have votes and be eligible. 

(b) Submission to the Courts to be compulsory. 

5. Regulation of work in prisons and convents. 



330 MODERN SOCIALISM 



C. Particular Measures for Agricultural Workers. 

1. Reorganization of the Agricultural Courts. 

(a) Nomination of delegates in equal numbers by the land- 
owners, farmers, and labourers. 

(b) Intervention of the Chambers in individual or col- 
lective disputes between landowners, farmers, and agricultural 
workers. 

(c) Fixing of a minimum wage by the public authorities on 
the proposition of the Agricultural Courts. 

2. Regulation of contracts to pay farm-rents. 

(a) Fixing of the rate of farm-rents by Committees of 
Arbitration or by the reformed Agricultural Courts. 

(b) Compensation to the outgoing farmer for enhanced 
value of property. 

(c) Participation of landowners, to a wider extent than that 
fixed by the Civil Code, in losses incurred by farmers. 

(d) Suppression of the landowner's privilege. 

3. Insurance by the provinces ', and reinsurance by the State ^ 
against epizootic diseases ^ diseases of plants , hail^ floods^ and other 
agricultural risks. 

4. Organization by the public authorities of a free agricultural 
education. 

Creation or development of experimental fields, model 
farms, agricultural laboratories. 

5. Purchase by the communes of agricultural implements to be 
at the disposal of tJicir inhabitants. 

Assignment of common lands to groups of labourers 
engaging not to employ wage-labour. 

6. Organization of a free medical service in the country. 

7. Reform of the Game Laws. 

(a) Suppression of gun licences. 

(b) Suppression of game preserves. 

(c) Right of cultivators to destroy all the year round animals 
which injure crops. 



PROGRAMME OF BELGIAN LABOUR PARTY 331 

8. Intervention of public authorities in the creation of agri- 
cultural co-operative societies 

(a) For buying seed and manure. 

(b) For making butter. 

(c) For the purchase and use in common of agricultural 
machines. 

(d) For the sale of produce ; 

(e) For the working of land by groups. 

9. Organization of agricultural credit. 



III. COMMUNAL PROGRAMME. 

1. Educational reforms. 

(a) Free scientific instruction for children up to fourteen. 
Special courses for older children and adults. 

(b) Organization of education in trades and industries, in 
co-operation with workmen's organizations. 

(c) Maintenance of children; except where the public 
authorities intervene to do so. 

(d) Institution of school refreshment-rooms. Periodic 
distribution of boots and clothing. 

(e) Orphanages. Establishments for children abandoned 
or cruelly ill-treated. 

2. Judicial reforms. 

Office for consultations free of charge in cases coming before 
the law-courts, the industrial courts, etc. 

3. Regulation of work. 

1 Under this head will be found the programme for local governing 
bodies. The three units of government in Belgium are the State, the nine 
provinces, and the communes. The communal councils correspond to our 
borough, district, and parish councils. Rural communes, however, though 
small, are not as small as English parishes j and urban communes, though 
large, are not allowed to reach the size of the great municipalities in 
England and America. The city of Brussels is divided between six com- 
munes. Hence the provision, in 7 below, for federations of communes. 



332 MODERN SOCIALISM 

(a) Minimum wage and maximum working-day to be made 
a clause in contracts for communal works. 

(b) Intervention of trade associations in the fixing of rates 
of wages, and general regulation of industry. The Echevin 
of Public Works to supervise the execution of these clauses in 
contracts. 

(c) Appointment by the workmen's associations of inspectors 
to supervise the clauses in contracts. 

(d) Rigorous application of the principle of tenders open 
to all, for all services which, during a transition-period, are not 
managed directly. 

(e) Permission to trade-unions to tender, 1 and abolition 
of security-deposit. 

(/) Creation of Bourses dti Travail? or at least offices 
for the demand and supply of employment, whose administra- 
tion shall be entrusted to trade-unions or labour associations. 

(g) Fixing of a minimum wage for the workmen and 
employes of a commune. 

4. Public charity? 

(a) Admission of workmen to the administration of the 
councils of hospitals and of public charity 

(b) Transformation of public charity and the hospitals into 
a system of insurance against old age. Organization of a 
medical service and drug supply. Establishment of public free 
baths and wash-houses. 

(c) Establishment of refuges for the aged and disabled. 
Night-shelter and food-distribution for workmen wandering in 
search of work. 



1 For this cp. Millerand's Bill of Nov. 14, 1899 ; as also his depart- 
mental efforts to stimulate trade-unions to co-operative production by 
certain preferences in the assignment of contracts, especially in connection 
with the Paris Exhibition, 1900. 

2 For Bourses du Travail > cp. p. 154. They were originally suggested 
by the Belgian, De Paepe, in 1868, in connection with the International 
Working Men's Association. 

* Includes matters dealt with under the English poor law. 



PROGRAMME OF BELGIAN LABOUR PARTY 333 

5. Complete neutrality of all communal seivices from ttie 
philosophical point of view? 

6. Finance. 

(a) Saving to be effected on present cost of administration. 
Maximum allowance of 6000 francs for mayors and other 
officials. Costs of entertainment for mayors who must incur 
certain private expenses. 

(b) Income-tax. 

(c) Special tax on sites not built over and houses not let. 

7. Public services. , 

(a) The commune, or a federation of communes com- 
posing one agglomeration, is to work the means of transport 
tramways, omnibuses, cabs, district railways, etc. 

(b) The commune, or federation of communes, is to work 
directly the services of general interest at present conceded to 
companies lighting, water-supply, markets, highways, heating, 
security, health. 

(c) Compulsory insurance of the inhabitants against fire ; 
except where the State intervenes to do so. 

(^) Construction of cheap dwellings by the commune, the 
hospices, and the charity offices. 

1 No preference for employment of persons with any special creed, 



XXIV 

PROGRAMME OF THE AUSTRIAN SOCIAL 
DEMOCRATIC PARTY 

Voted at Brunn, 1901. 

THE Social Democratic Labour party in Austria strives on behalf 
of the whole people, without distinction of nation, race, and sex, 
for emancipation from the fetters of economic dependence, 
political oppression, and intellectual confinement. The cause 
of these unsatisfactory conditions lies, not in particular political 
arrangements, but in the fact essentially conditioning and 
dominating the whole state of society, that the means of working 
are monopolized in the hands of individual possessors. The 
possessors of the power to work, the working-class, fall there- 
fore into the most oppressive dependence upon the possessors 
of the means of working, which include land that is, upon 
the great land-owning and capitalist classes, whose political 
and economic domination is expressed in the class-State of 
to-day. 

Technical progress, the growing concentration of production 
and property, the union of every economic force in the hands 
of capitalists and capitalistic groups, have the effect of depriving 
ever- widening circles of small industrial employers and peasants, 
formerly independent, of their means of production, and 
bringing them as wage-workers, employes, or debtors, into 
direct or indirect dependence on the capitalists. The mass of 
proletarians grows ; the degree of their exploitation also rises ; 

334 



AUSTRIAN SOCIAL DEMOCRATIC PROGRAMME 335 

and, in consequence, the standard of life of ever-deepening 
strata of the working people contrasts more and more with 
the rapidly rising productivity of their own work and the 
expansion of the wealth which they themselves create. The 
crises resulting from the want of design in the capitalistic 
method of production, with the unemployment and misery 
resulting from them, precipitate and accentuate this develop- 
ment. 

But the more the development of capitalism increases the 
proletariate, the more is the proletariate compelled and enabled 
to take up the battle against it. The suppression of individual 
production makes individual property ever more superfluous 
and harmful, while at the same time the necessary mental and 
material conditions are afforded for new forms of co-operative 
production on the basis of social ownership of the means of 
production. Simultaneously the proletariate becomes conscious 
that it must advance and precipitate this development, and 
that the transfer of the means of work to the communal owner- 
ship of the whole people must be the end, and the capture of 
political power the means, in its fight for the emancipation of 
the working-class. Only the proletariate aroused to class- 
consciousness, and organized for the class-war, can carry out 
this necessary development. To organize the proletariate, to 
Jill it with tJie consciousness of its position and its object, to make 
and keep it mentally and physically fit for the battle, is therefore 
the real programme of the Social Democratic Labour party in 
Austria, towards which it will avail itself of all means which 
subserve its aim and correspond to the people's natural sense 
of justice. 

The Social Democratic Labour party in Austria will in all 
political and economic questions always represent the class- 
interest of the proletariate, and energetically oppose any 
attempt to obscure and conceal the class-antagonisms, as well 
as any attempt to wear out the workers on behalf of the 
bourgeois party. 

The Social Democratic Labour party in Austria is an 



356 MODERN SOCIALISM 

international party; it condemns the privileges of nations as 
well as those of birth and sex, property and lineage, and 
declares that the war against exploitation must be international 
like the exploitation itself. It condemns and combats all 
restrictions upon the free expression of opinion, and all State 
and ecclesiastical tutelage. It strives for legal protection of 
the standard of life of the working-classes, and fights to give 
the proletariate a maximum influence upon every sphere of 
public life. 

Setting out from these principles, the Austrian Social 
Democracy demands immediately 

1. Universal, equal, direct, and secret suffrage in State, 
province, and commune for all members of the State, without 
distinction of sex, from the age of twenty upwards ; propor- 
tional representation ; fixing of elections for a legal holiday ; 
triennial legislative periods ; maintenance-grant for elected 
persons. 

2. Direct legislation by the people by means of the initiative 
and referendum ; self-determination and self-government of the 
people in State, province, and commune. 

3. Abolition of all laws which limit the right to free expres- 
sion of opinions ; in particular, provision of full freedom of the 
press by the removal of outside management and the restriction 
upon colportage of printed matter ; removal of all laws restrict- 
ing the right of association and assembly. 

4. Removal of all restrictions upon free locomotion; in 
particular, of all vagrancy laws. 

5. A law to be passed and carried out subjecting officials 
who infringe the political rights of individuals or associations 
to a severe penalty. 

6. Independence of the law-courts to be guaranteed. No 
charges to be made for the administration of the law, or for 
legal assistance. Indemnification of innocent persons arrested 
and condemned. Election of jurors on the basis of universal, 
equal, and secret suffrage. Subjection of all State-servants to 
the ordinary laws and courts. Abolition of the death penalty. 



AUSTRIAN SOCIAL DEMOCRATIC PROGRAMME 337 

7. State and communal organization of the public health 
service. Provision of medical attendance and medicine without 
charge. 

8. Declaration that religion is a private matter. Separa- 
tion of the Church from the State, and declaration that eccle- 
siastical and religious communities are private associations, 
which manage their affairs quite independently. Compulsory 
civil marriage. 

9. Compulsory, free, secular education, in complete corre- 
spondence with the needs nd development of the several 
nationalities. No charges to be made for school requisites and 
maintenance in the primary schools for all children, and for 
those pupils of higher educational institutions who are capable 
of further training. 

10. Substitution for all indirect taxes and duties of graduated 
taxes upon income, property, and inheritance. 

IT. Substitution of the armed nation for the standing army. 
Education of all to be capable of bearing arms. Arming of the 
whole nation. Decision of war and peace by the representatives 
of the people. 

12. Removal of all laws whereby women are prejudicially 
affected as against men in public or private law. 

13. Liberation of workmen's co-operative societies from all 
burdens and limitations impeding their activity. 

As a minimum of protection for workers, the Austrian 
Social Democracy demands 

1. Full freedom of combination ; legal recognition of trade- 
union organizations; legal equalization of agricultural labourers ; 
abolition of the regulations affecting servants. 

2. Eight hours' maximum working-day, without clauses and 
without exceptions. 

3. Prohibition of night-work except in businesses whose 
technical nature does not permit of an interruption ; night- work 
for women and non-adult workers is to be prohibited without 
exception. 

4. Complete rest of at least thirty-six hours on Sunday. 

z 



338 MODERN SOCIALISM 

5. Prohibition of work for profit by children under fourteen 
to be thoroughly enforced. Comprehensive laws to protect 
apprentices and non-adult workers. 

6. Exclusion of women workers from industries especially 
injurious to women's physique. 

All these regulations are to apply to industries of every 
kind and degree (great industry, transport industry, handicraft, 
trade, home industry). 

Development of the industrial inspectorate. Increase of 
inspectors, to whom executive powers are to be given. Partici- 
pation of the workers' organizations in the control of the 
enforcement of workmen's protection, through the inspectors, 
male and female, whom they select. 

Employers who transgress the laws for the protection of 
workers are to be liable to severe penalties, which may not be 
converted into money fines. 

Workmen's insurance is to be subjected to a radical reform^ 
to be completed by the introduction of a universal insurance 
against old age and disablement, as well as a provision for 
widows and orphans, and to be uniformly organized with a 
thorough autonomy for the insured. 



XXV 

A FRENCH PROGRAMME OF 1902 

This was voted at Tours <by the " French Socialist Party," the 
less revolutionary wing of French Socialism, led by M. Jaures and 
comprising about three-quarters of the Socialist deputies. In 1905 
this wing fused itself with the more revolutionary ''Socialist Party 
of France," under MM. Guesde and Vaillant, and the result was the 
present United Socialist Party (les Unifies). The principles of the 
latter appear in its election address (1906"), which will be found on 
P- 378. 

I. DECLARATION OF PRINCIPLES. 

SOCIALISM proceeds simultaneously from the movement of 
democracy and from the new forms of production. In history, 
from the very morrow of the French Revolution, the proletarians 
perceived that the Declaration of the Rights of Man would 
remain an illusion unless society transformed ownership. 

How, indeed, could freedom, ownership, security, be 
guaranteed to all, in a society where millions of workers have 
no property but their muscles, and are obliged, in order to live, 
to sell their power of work to the propertied minority ? 

To extend, therefore, to every citizen the guarantees in- 
scribed in the Declaration of Rights, our great Babeuf demanded 
ownership in common, as a guarantee of welfare in common. 
Communism was for the boldest proletarians the supreme 
expression of the Revolution. 

Between the political rtgime, the outcome of the revolu- 
tionary movement, and the economic rlgime of society, there 
is an intolerable contradiction. 

In the political order democracy is realized : all citizens 
339 



340 MODERN SOCIALISM 

share equally, at least by right, in the sovereignty ; universal 
suffrage is communism in political power. 

In the economic order, on the other hand, a minority is 
sovereign. It is the oligarchy of capital which possesses, 
directs, administers, and exploits. 

Proletarians are acknowledged fit as citizens to manage 
the milliards of the national and communal budgets; as 
labourers, in the workshop, they are only a passive multitude, 
which has no share in the direction ot enterprises, and they 
endure the domination of a class which makes them pay 
dearly for a tutelage whose utility ceases and whose prolonga- 
tion is arbitrary. 

The irresistible tendency of the proletarians, therefore, is 
to transfer into the economic order the democracy partially 
realized in the political order. Just as all the citizens have 
and handle in common, democratically, the political power, so 
they must have and handle in common the economic power, 
the means of production. 

They must themselves appoint the heads of work in the 
workshops, as they appoint the heads of government in the 
city, and reserve for those who work, for the community, 
the whole product of work. 

This tendency of political democracy to enlarge itself into 
social democracy has been strengthened and defined by the 
whole economic evolution. 

In proportion as the capitalistic regime developed its 
effects, the proletariate became conscious of the irreducible 
opposition between its essential interests and the interests of 
the class dominant in society, and to the bourgeois form of 
democracy it opposed more and more the complete and 
thorough communistic democracy. 

All hope of universalizing ownership and independence by 
multiplying small autonomous producers has disappeared. 
The great industry is more and more the rule in modern 
production. 

By the enlargement of the world's markets, by the growing 



PROGRAMME OF FRENCH SOCIALIST PARTY 341 

facility of transport, by the division of labour, by the increasing 
application of machinery, by the concentration of capitals, 
immense concentrated production is gradually ruining or sub- 
ordinating the small or middling producers. 

Even where the number of small craftsmen, small traders, 
small peasant proprietors, does not diminish, their relative 
importance in the totality of production grows less unceasingly. 
They fall under the sway of the great capitalists. 

Even the peasant proprietors, who seem to have retained 
a little independence, are <rnore and more exposed to the 
crushing forces of the universal market, which capitalism 
directs without their concurrence and against their interests. 

For the sale of their wheat, wine, beetroot, and milk, 
they are more and more at the mercy of great middlemen or 
great industries of milling, distilling, and sugar-refining, which 
dominate and despoil peasant labour. 

The industrial proletarians, having lost nearly all chance 
of individually rising to be employers, and being thus doomed 
to eternal dependence, are further subject to incessant crises of 
unemployment and misery, let loose by the unregulated com- 
petition of the great capitalist forces. 

The immense progress of production and wealth, largely 
usurped by parasitic classes, has not led to an equivalent 
progress in well-being and security for the workers, the pro- 
letarians. Whole categories of wage-earners are abruptly 
thrown into extreme misery by the constant introduction of 
new mechanisms and by the abrupt movements and trans- 
formations of industry. 

Capitalism itself admits the disorder of the present regime 
of production, since it tries to regulate it for its gain by 
capitalistic syndicates, by trusts. 

Even if it succeeded in actually disciplining all the forces 
of production, it would only do so while consummating the 
domination and the monopoly of capital. 

There is only one way of assuring the continued order and 
progress of production, the freedom of every individual, and 



342 MODERN SOCIALISM 

the growing well-being of the workers ; it is to transfer to the 
collectivity, to the social community, the ownership of the 
capitalistic means of production. 

The proletariate, daily more numerous, ever better prepared 
for combined action by the great industry itself, understands 
that in collectiveness or communism lie the necessary means of 
salvation for it 

As an oppressed and exploited class, it opposes all the 
forces of oppression and exploitation, the whole system of 
ownership, which debases it to be a mere instrument. It does 
not expect its emancipation from the good will of rulers or 
the spontaneous generosity of the propertied classes, but from 
the continual and methodical pressure which it exerts upon the 
privileged class and the government. 

It sets before itself as its final aim, not a partial ameliora- 
tion, but the total transformation of society. And since it 
acknowledges no right as belonging to capitalistic ownership, 
it feels bound to it by no contract. It is determined to fight 
it, thoroughly, and to the end ; and it is in this sense that the 
proletariate, even while using the legal means which democracy 
puts into its hands, is and must remain a revolutionary class. 

Already by winning universal suffrage, by winning and 
exercising the right of combining to strike and of forming 
trade-unions, by the first laws regulating labour and causing 
society to insure its members, the proletariate has begun to 
react against the fatal effects of capitalism ; it will continue 
this great and unceasing effort, but it will only end the struggle 
when all capitalist property has been reabsorbed by the com- 
munity, and when the antagonism of classes has been ended 
by the disappearance of the classes themselves, reconciled, or 
rather made one, in common production and common owner- 
ship. 

How will be accomplished the supreme transformation of 
the capitalist r'egime into the collectivist or communist ? The 
human mind cannot determine beforehand the mode in which 
history will be accomplished, 



PROGRAMME OF FRENCH SOCIALIST PARTY 343 

The democratic and bourgeois revolution, which originated 
in the great movement of France in 1789, has come about in 
different countries in the most different ways. The old feudal 
system has yielded in one case to force, in another to peaceful 
and slow evolution. The revolutionary bourgeoisie has at one 
place and time proceeded to brutal expropriation without com- 
pensation, at another to the buying out of feudal servitudes. 

No one can know in what way the capitalist servitude will 
be abolished. The essential thing is that the proletariate 
should be always ready for the most vigorous and effective 
action. It would be dangerous to dismiss the possibility of 
revolutionary events occasioned either by the resistance or by 
the criminal aggression of the privileged class. 

It would be fatal, trusting in the one word revolution, to 
neglect the great forces which the conscious, organized pro- 
letariate can employ within democracy. 

These legal means, often won by revolution, represent an 
accumulation of revolutionary force, a revolutionary capital, of 
which it would be madness not to take advantage. 

Too often the workers neglect to profit by the means of 
action, which democracy and the republic put into their hands. 
They do not demand from trade-unionist action, co-operative 
action, or universal suffrage, all that those forms of action can 
give. 

No formula, no machinery, can enable the working-class to 
dispense with the constant effort of organization and education. 

The idea of the general strike, of general strikes, is in- 
vincibly suggested to proletarians by the growing magnitude of 
working-class organization. They do not desire violence, 
which is very often the result of an insufficient organization 
and a rudimentary education of the proletariate; but they 
would make a great mistake if they did not employ the power- 
ful means of action, which co-ordinates working-class forces to 
subserve the great interests of the workers or of society ; they 
must group and organize themselves to be in a position to 
make the privileged class more and more emphatically aware 



344 MODERN SOCIALISM 

of the gulf, which may suddenly be cleft open in the economic 
life of societies by the abrupt stoppage of the worn-out and 
interminably exploited workers. They can thereby snatch 
from the selfishness of the privileged class great reforms 
interesting the working-class in general, and hasten the com- 
plete transformation of an unjust society. But the formula 
of the general strike, like the partial strike, like political action, 
is only valuable through the progress of the education, the 
thought, and the will of the working-class. 

The Socialist party defends the Republic as a necessary 
means of liberation and education. Socialism is essentially 
republican. It might be even said to be the Republic itself, 
since it is the extension of the Republic to the regime of 
property and labour. 

The Socialist party needs, to organize the new world, free 
minds, emancipated from superstitions and prejudices. It 
asks for and guarantees every human being, every individual, 
absolute freedom of thinking, and writing, and affirming their 
beliefs. Over against all religions, dogmas, and churches, as 
well as over against the class conceptions of the bourgeoisie, it 
sets the unlimited right of free thought, the scientific conception 
of the universe, and a system of public education based ex- 
clusively on science and reason. 

Thus accustomed to free thought and reflection, citizens 
will be protected against the sophistries of the capitalistic 
and clerical reaction. The small craftsmen, small traders, and 
small peasant proprietors will cease to think that it is Socialism 
which wishes to expropriate them. The Socialist party will 
hasten the hour when these small peasant proprietors, ruined 
by the underselling of their produce, riddled with mortgage 
debts, and always liable to judicial expropriation, will eventually 
understand the advantages of generalized and systematized 
association, and will claim themselves, as a benefit, the socializa- 
tion of their plots of land. 

But it would be useless to prepare inside each nation an 
organization of justice and peace, if the relations of the nations 



PROGRAMME OF FRENCH SOCIALIST PARTY 345 

to one another remained exposed to every enterprise of force, 
every suggestion of capitalist greed. 

The Socialist party desires peace among nations; it con- 
demns every policy of aggression and war, whether continental 
or colonial. It constantly keeps on the order of the day for 
civilized countries simultaneous disarmament. While waiting 
for the day of definite peace among nations, it combats the 
militarist spirit by doing its utmost to approximate the system of 
permanent armies to that of national militias. It wishes to pro- 
tect the territory and the independence of the nation against 
any surprise ; but every offensive policy and offensive weapon 
is utterly condemned by it. 

The close understanding of the workers, of the proletarians 
of every country, is necessary as well to beat back the forces of 
aggression and war as to prepare by a concerted action the 
general triumph of Socialism. The international agreement of 
the militant proletarians of every country will prepare the 
triumph of a free humanity, where the differences of classes 
will have disappeared, and the difference of nations, instead 
of being a principle of strife and hatred, will be a prin- 
ciple of brotherly emulation in the universal progress of 
mankind. 

It is in this sense and for these reasons that the Socialist 
party has formulated in its congresses the rule and aim of its 
action international understanding of the workers; political 
and economic organization of the proletariate as a class party 
for the conquest of government and the socialization of the 
means of production and exchange ; that is to say, the trans- 
formation of capitalist society into a collectivist or communist 
society. 



II. PROGRAMME OF REFORMS. 

The Socialist party, rejecting the policy of all or nothing, 
has a programme of reforms whose realization it pursues 
forthwith. 



346 MODERN SOCIALISM 

(i) Democratization of Public Authorities. 

1. Universal direct suffrage, without distinction of sex, in 
every election. 

2. Reduction of time of residence. Votes to be cast for 
lists, with proportional representation, in every election. 

3. Legislative measures to secure the freedom and secrecy 
of the vote. 

4. Popular right of initiative and referendum. 

5. Abolition of the Senate and Presidency of the Republic. 
The powers at present belonging to the President of the 
Republic and the Cabinet to devolve on an executive council 
appointed by the Parliament. 

6. Legal regulation of the legislator's mandate, to be 
revocable by the vote of any absolute majority of his con- 
stituents on the register. 

7. Admission of women to all public functions. 

8. Absolute freedom of the press, and of assembly guaran- 
teed only by the common law. Abrogation of all exceptional 
laws on the press. Freedom of civil associations. 

9. Full administrative autonomy of the depaitments and 
communes, under no reservations but that of the laws 
guaranteeing the republican, democratic, and secular character 
of the State. 

(2) Complete Secularization of the State. 

1. Separation of the Churches and the State; abolition of 
the Budget of Public Worship ; freedom of public worship ; 
prohibition of the political and collective action of the Churches 
against the civil laws and republican liberties. 

2. Abolition of the congregations j nationalization of the 
property in mortmain, of every kind, belonging to them, and 
appropriation of it for works of social insurance and solidarity ; 
in the interval, all industrial, agricultural, and commercial 
undertakings are to be forbidden to the congregations. 



PROGRAMME OF FRENCH SOCIALIST PARTY 347 

(3) Democratic and Humane Organization of Justice. 

1. Substitution for all the present courts, whether civil or 
criminal, of courts composed of a jury taken from the electoral 
register and judges elected under guarantees of competence ; 
the jury to be formed by drawing lots from lists drawn up by 
universal suffrage. 

2. Justice to be without fee. Transformation of ministerial 
offices into public functions. Abolition of the monopoly of 
the bar. 

3. Examination from opposite sides at every stage and on 
every point. 

4. Substitution for the vindictive character of the present 
punishments, of a system for the safe keeping and the ameliora- 
tion of convicts. 

5. Abolition of the death penalty. 

6. Abolition of the military and naval courts. 

(4) Constitution of the Family in conformity with Individual 
Rights. 

1. Abrogation of every law establishing the civil inferiority 
of women and natural or adulterine children. 

2. Most liberal legislation on divorce. A law sanctioning 
inquiry into paternity. 

(5) Civic and Technical Education. 

1. Education to be free of charge at every stage. 

2. Maintenance of the children in elementary schools at 
the expense of the public bodies. 

3. For secondary and higher education, the community 
to pay for those of the children who on examination are 
pronounced fit usefully to continue their studies. 

4. Creation of a popular higher education. 

5. State monopoly of education at the three stages; as a 
means towards this, all members of the regular and secular 
clergy to be forbidden to open and teach in a school. 



3+8 MODERN SOCIALISM 

(6) General recasting of the System of Taxation upon 
Principles of Social Solidarity. 

1. Abolition of every tax on articles of consumption which 
are primary necessaries, and of the four direct contributions ; l 
accessorily, relief from taxation of all small plots of land and 
small professional businesses. 2 

2. Progressive income-tax, levied on each person's income 
as a whole, in all cases where it exceeds 3000 francs (^"120). 

3. Progressive tax on inheritances, the scale of progression 
being calculated with reference both to the amount of the 
inheritance and the degree of remoteness of the relationship. 

4. The State to be empowered to seek a part of the 
revenue which it requires from certain monopolies. 

(7) Legal Protection and Regulation of Labour in Industry ', 
Commerce^ and Agriculture. 

1. One day's rest per week, or prohibition of employers to 
exact work more than six days in seven. 

2. Limitation of the working-day to eight hours; as a 
means towards this, vote of every regulation diminishing the 
length of the working-day. 

3. Prohibition of the employment of children under four- 
teen ; half-time system for young persons, productive labour 
being combined with instruction and education. 

4. Prohibition of night-work for women and young persons. 
Prohibition of night-work for adult workers of all categories 
and in all industries where night-work is not absolutely neces- 
sary. 

5. Legislation to protect home-workers. 

6. Prohibition of piece-work and of truck. Legal recog- 
nition of black-listing. 

7. Scales of rates forming a minimum wage to be fixed 
by agreement between municipalities and the working-class 
corporations of industry, commerce, and agriculture. 

1 Personal tax ; tax on movables ; tax on land ; door and window tax. 
8 A licence to trade is required for many businesses in France. 



PROGRAMME OF FRENCH SOCIALIST PARTY 349 

8. Employers to be forbidden to make deductions from 
wages, as fines or otherwise. Workers to assist in framing 
special rules for workshops. 

9. Inspection of workshops, mills, factories, mines, yards, 
public services, shops, etc., shall be carried out with reference 
to the conditions of work, hygiene, and safety, by inspectors 
elected by the workmen's unions, in concurrence with the 
State inspectors. 

10. Extension of the industrial arbitration courts to all 
wage-workers of industry, commerce, and agriculture. 

11. Convict labour to be treated as a State monopoly ; the 
charge for all work done shall be the wage normally paid to 
trade-unionist workers. 

12. Women to be forbidden by law to work for six weeks 
before confinement and for six weeks after. 

(8) Social Insurance against all Natural and Economic Risks. 

1. Organization by the nation of a system of social insur- 
ance, applying to the whole mass of industrial, commercial, 
and agricultural workers, against the risks of sickness, accident, 
disability, old age, and unemployment. 

2. The insurance funds to be found without drawing on 
wages ; as a means towards this, limitation of the contribution 
drawn from the wage- workers to a third of the total contri- 
bution, the two other thirds to be provided by the State and 
the employers. 

3. The law on workmen's accidents to be improved and 
applied without distinction or nationality. 

4. The workers to take part in the control and administra- 
tion of the insurance system. 

(9) Extension of the Domain and Public Services, Industrial 
and Agricultural^ of State, Department, and Commune. 

i. Nationalization of railways, mines, the Bank of France, 
insurance, the sugar refineries and sugar factories, the dis- 
tilleries, and the great milling establishments. 



350 MODERN SOCIALISM 

2. Organization of public employment-registries for the 
workers, with the assistance of the Bourses du Travail, 1 and the 
workmen's organizations; and abolition of the private registries. 

3. State organization of agricultural banks. 

4. Grants to rural communes to assist them to purchase 
agricultural machinery collectively, to acquire communal 
domains, worked under the control of the communes by unions 
of rural labourers, and to establish depots and entrepots. 

5. Organization of communal services for lighting, water, 
common transport, construction, and public management of 
cheap dwellings. 

6. Democratic administration of the public services, 
national and communal; organizations of workers to take 
part in their administration and control ; all wage-earners in 
all public services to have the right of forming trade-unions. 

7. National and communal service of public health, and 
strengthening of the laws which protect it those on unhealthy 
dwellings, etc. 

(10) Policy of International Peace and Adaptation of the 
Military Organization to the Defence of tJie Country. 

1. Substitution of a militia for the standing Army, and 
adoption of every measure, such as reductions of military 
service, leading up to it. 

2. Remodelling and mitigation of the military penal code; 
abolition of disciplinary corps, and prohibition of the pro- 
longation of military service by way of penalty. 

3. Renunciation of all offensive war, no matter what its 
pretext. 

4. Renunciation of every alliance not aimed exclusively at 
the maintenance of peace. 

5. Renunciation of Colonial military expeditions; and in 
the present Colonies or Protectorates, withdrawn from the 
influence of missionaries and the military regime, development 
of institutions to protect the natives. 

1 For the Bourses dn Travail^ cp. p. 154. 



XXVI 

PROGRAMMES OF T^E ENGLISH SOCIALIST 
ORGANIZATIONS 

I. THE PROGRAMME OF THE SOCIAL DEMOCRATIC 
PARTY 

[Revised up to 1909] 

The Social Democratic Party (S.D.F.) is the oldest English 
Socialist body. Various Radical clubs in London formed in 1881 the 
Democratic Federation, and in 1883 this body declared for Socialism 
and took its Socialist title. Most of the leading English Socialists 
were for a short while in its ranks. 

OBJECTS 

THE Socialization of the Great Means of Production and 
Distribution, under a Co-operative Commonwealth, the com- 
plete Emancipation of Labour from the Domination of 
Capitalism and Landlordism, with the establishment of Social 
and Economic Equality between the Sexes. 

The economic development of modern society is charac- 
terized by the more or less complete domination of the 
capitalistic mode of production over all branches of human 
labour. 

The capitalistic mode of production, because it has 
the creation of profit for its sole object, therefore favours 
the larger capital, and is based upon the divorcement of the 
majority of the people from the instruments of production 

351 



352 MODERN SOCIALISM 

and the concentration of these instruments in the hands of 
a minority. Society is thus divided into two opposite classes : 
one, the capitalists and their sleeping partners, the landlords 
and loanmongers, holding in their hands the means of produc- 
tion, distribution, and exchange, and being, therefore, able to 
command the labour of others ; the other, the working-class, 
the wage-earners, the proletariat, possessing nothing but their 
labour-power, and being consequently forced by necessity to 
work for the former. 

The social division thus produced becomes wider and 
deeper with every new advance in the application of labour- 
saving machinery. It is most clearly recognizable, however, in 
the times of industrial and commercial crises, when, in conse- 
quence of the present chaotic conditions of carrying on 
national and international industry, production periodically 
comes to a standstill, and a number of the few remaining inde- 
pendent producers are thrown into the ranks of the proletariat. 
Thus, while on one hand there is incessantly going on an 
accumulation of capital, wealth, and power into a steadily 
diminishing number of hands, there is, on the other hand, a 
constantly growing insecurity of livelihood for the mass of 
wage-earners, an increasing disparity between human wants 
and the opportunity of acquiring the means for their satisfaction, 
and a steady physical and mental deterioration among the more 
poverty-stricken of the population. 

But the more this social division widens, the stronger grows 
the revolt more conscious abroad than here of the prole- 
tariat against the capitalist system of society in which this 
division and all that accompanies it have originated, and find 
such fruitful soil. The capitalist mode of production, by massing 
the workers in large factories, and creating an interdependence, 
not only between various trades and branches of industries, 
but even national industries, prepares the ground and furnishes 
material for a universal class war. That class war may at first 
' as in this country be directed against the abuses of the system, 
and not against the system itself; but sooner or later the 



ENGLISH S.D.F. PROGRAMME 353 

workers must come to recognize that nothing short of the 
expropriation of the capitalist class, the ownership by the com- 
munity of the means of production, distribution, and exchange, 
can put an end to their abject economic condition j and then 
the class war will become conscious instead ot unconscious on 
the part of the working-classes, and they will have for their 
ultimate object the overthrow of the capitalist system. At the 
same time, since the capitalist class holds and uses the power 
of the State to safeguard its position and beat off any attack, 
the class war must assume a* political character, and become a 
struggle on the part of the workers for the possession of the 
political machinery. 

It is this struggle for the conquest of the political power 
of the State, in order to effect a social transformation, which 
International Social Democracy carries on in the name and 
on behalf of the working-class. Social Democracy, therefore, 
is the only possible political party of the proletariat. The 
Social Democratic Party is a part of this International Social 
Democracy. It, therefore, takes its stand on the above prin- 
ciples, and believes 

1. That the emancipation of the working-class can only be 
achieved through the socialization of the means of production, 
distribution, and exchange, and their subsequent control by 
the organized community in the interests of the whole people. 

2. That, as the proletariat is the last class to ach'evj free- 
dom, its emancipation will mean the emancipation of the 
whole of mankind, without distinction of race, nationality, 
creed, or sex. 

3. That this emancipation can only be the work of the 
working-class itself, organized nationally and internationally 
into a distinct political party, consciously striving after the 
realization of its ideals ; and, finally, 

4. That, in order to ensure greater material and moral 
facilities for the working-class to organize itself and to carry 
on the class war, the following reforms must immediately be 
carried through : 

2 A 



354 MODERN SOCIALISM 

TRANSITIONAL PROGRAMME 

Democratization of all public functions by payment of 
members of legislative and administrative bodies and of 
official election expenses out of the public funds; adult 
suffrage; proportional representation; triennial Parliaments 
with the Initiative and Referendum. 

Abolition of the Monarchy and all other hereditary 
authority. 

Repudiation of the National Debt 

Abolition of all indirect taxation and the institution of a 
cumulative tax on all incomes exceeding ^300 a year. 

All education to be free, secular, physical, industrial, and 
compulsory for all classes. The age of school attendance to 
be raised to 16. 

State maintenance for all school children. Abolition of 
school rates, the cost of education and maintenance in all 
schools to be borne by the National Exchequer. 

A legislative eight hours working day, or 48 hours per 
week, to be the maximum for all trades and industries. 

No child to be employed in any trade or occupation until 
1 6 years of age. 

The legislative enactment of a minimum wage for all 
workers, with equal pay for both sexes for the performance of 
equal work. 

Public ownership of the land and all other monopolies 
and public services, with the organization of labour in 
agriculture and industry on co-operative principles. 

The public ownership of electricity, water power, and 
new inventions. 

Public provision of useful work for the unemployed at not 
less than trade union rates of wages. 

Free state insurance against sickness and accident, and 
free and adequate state pensions or provision for aged and 
disabled workers. Public assistance not to entail forfeiture of 
political rights. 



ENGLISH S.D.F. PROGRAMME 355 

Administration of the Poor Law on the basis of national 
co-operation. 

Compulsory construction by public bodies of healthy 
dwellings for the people ; such dwellings to be let at rents to 
cover the cost of construction and maintenance alone. 

The administration of justice and legal advice to be free 
to all; justice to be administered by judges and magistrates 
chosen by the people; compensation for those innocently 
accused, condemned, and imprisoned ; entire abolition of 
imprisonment for debt; abolition of capital punishment. 

The disestablishment and disendowment of all State 
churches. 

The abolition of standing armies, and the establishment of 
a national citizen force. The abolition of courts-martial ; all 
offences against discipline to be transferred to the jurisdiction 
of civil courts in times of peace. The people to decide on 
peace and war. 

The establishment of international courts of arbitration. 






356 MODERN SOCIALISM 

II. THE PROGRAMME OF THE INDEPENDENT 
LABOUR PARTY (1906-7) 

The Independent Labour Party was founded in 1892-3, mainly by 
Socialists in close touch with the trade-union movement. It held its 
first congress on January 13 and 14, 1893. It must be carefully dis- 
tinguished from the Labour Party (see p. 364), the federal body to 
which since 1901 it has been affiliated and which it has done so much 
to inspire. 

Name. 
" The Independent Labour Party." 

Membership. 

Open to all Socialists who endorse the principles and 
policy of the Party, are not members of either the Liberal or 
Conservative Party, and whose application for membership is 
accepted by a Branch. 

Any member expelled from membership of a Branch of the 
I.L.P. shall not be eligible for membership of any other Branch 
without having first submitted his or her case for adjudication 
of the N.A.C. 

Object, 

The object of the Party is to establish the Socialist 
State, when land and capital will be held by the community 
and used for the well-being of the community, and when 
the exchange of commodities will be organized also by the 
community, so as to secure the highest possible standard 
of life for the individual. In giving effect to this object it 
shall work as part of the International Socialist movement. 

Method. 

The Party, to secure its objects, adopts 
i. EDUCATIONAL METHODS, including the publication of 
Socialist literature, the holding of meetings, etc. 



ENGLISH I.L.P. PROGRAMME 357 

2. POLITICAL METHODS, including the election of its 
members to local and national administrative and 
legislative bodies. 

Programme. 

The true object of industry being the production of the 
requirements of life, the responsibility should rest with the 
community collectively, therefore 

The land, being the storehouse of all the necessaries of life, 
should be declared and treated as public property. 

The capital necessary for industrial operations should be 
owned and used collectively. 

Work, and wealth resulting therefrom, should be equitably 
distributed over the population. 

As a means to this end, we demand the enactment of the 
following measures : 

T. A maximum forty-eight hours' working-week, with the 
retention of all existing holidays, and Labour Day, May i, 
secured by law. 

2. The provision of work to all capable adult applicants at 
recognized trade-union rates, with a statutory minimum of 
sixpence per hour. 

In order to remuneratively employ the applicants, parish, 
district, borough, and county councils to be invested with 
power to 

(a) Organize and undertake such industries as they may 
consider desirable. 

(b) Compulsorily acquire land ; purchase, erect, or manu- 
facture, buildings, stock, or other articles for carrying on such 
industries. 

(c) Levy rates on the rental values of the district, and 
borrow money on the security of such rates for any of the 
above purposes. 

3. State pensions for every person over fifty years of age, 
and adequate provision for all widows, orphans, sick and dis- 
abled workers. 



358 MODERN SOCIALISM 

4. Free, secular, moral, primary, secondary and university 
education, with free maintenance while at school or university. 

5. The raising of the age of child labour, with a view of its 
ultimate extinction. 

6. Municipalization and public control of the drink traffic. 

7. Municipalization and public control of all hospitals and 
infirmaries. 

8. Abolition of indirect taxation, and the gradual trans- 
ference of all public burdens on to unearned incomes, with a 
view to their ultimate extinction. 

The Independent Labour Party is in favour of adult 
suffrage, with full political rights and privileges for women, 
and the immediate extension of the franchise to women on 
the same terms as granted to men ; also triennial parliaments 
and second ballot. 



ENGLISH FABIAN PROGRAMME 



III. THE PROGRAMME OF THE FABIAN SOCIETY 

The Fabian Society dates from January 4, 1884. It differs from 
other Socialist bodies in not trying to enlist the mass of its converts in 
its ranks, and in encouraging its members to join and permeate other 
organizations. It exists for purposes of co-operation in research, 
internal discussion, and external propaganda. It does not bind its 
members to a programme, but only to a basis ; this is, however, here 
supplemented by one of the lists of questions, which it has formulated 
to meet every variety of popular election. 



Basis of the Fabian Society. 

The Fabian Society consists of Socialists. 

It therefore aims at the reorganization of society by the 
emancipation of land and industrial capital from individual and 
class ownership, and the vesting of them in the community for 
the general benefit. In this way only can the natural and 
acquired advantages of the country be equitably shared by the 
whole people. 

The Society accordingly works for the extinction of private 
property in land and of the consequent individual appropria- 
tion, in the form of rent, of the price paid for permission to 
use the earth, as well as for the advantages of superior soils 
and sites. 

The Society, further, works for the transfer to the com- 
munity of the administration of such industrial capital as can 
conveniently be managed socially. For, owing to the monopoly 
of the means of production in the past, industrial inventions 
and the transformation of surplus income into capital have 
mainly enriched the proprietary class, the worker being now 
dependent on that class for leave to earn a living. 

If these measures be carried out, without compensation 
(though not without such relief to expropriated individuals as 



$6o MODERN SOCIALISM 

may seem fit to the community), rent and interest will be 
added to the reward of labour, the idle class now living on the 
labour of others will necessarily disappear, and practical equality 
of opportunity will be maintained by the spontaneous action 
of economic forces with much less interference with personal 
liberty than the present system entails. 

For the attainment of these ends the Fabian Society looks 
to the spread of Socialist opinions, and the social and political 
changes consequent thereon. It seeks to promote these by the 
general dissemination of knowledge as to the relation between 
the individual and society in its economic, ethical and political 
aspects. 



QUESTIONS FOR PARLIAMENTARY 

CANDIDATES 
(Revised September, 1900.) 

Will you press at the first opportunity for the following 
reforms ; 

I. A Labour Programme. 

1. The extension of the Workmen's Compensation Act to 
seamen, and to all other classes of wage earners ? 

2. Compulsory arbitration, as in New Zealand, to prevent 
strikes and lock-outs ? 

3. A statutory minimum wage, as in Victoria, especially for 
sweated trades ? 

4. The fixing of " an eight-hours' day " as the maximum 
for all public servants ; and the abolition, wherever possible, 
of overtime ? 

5. An Eight-Hours' Bill, without an option clause, for 
miners ; and, for railway servants, a forty-eight hours' week ? 

6. The drastic amendment of the Factory Acts, to secure 
(a) a safe and healthy work-place for every worker, (b) the 
prevention of overwork for all women and young persons, 
(c) the abolition of all wage-labour by children under 14, 



ENGLISH FABIAN PROGRAMME 361 

(d) compulsory technical instruction by extension of the half- 
time arrangements to all workers under 1 8 ? 

7. The direct employment of labour by all public authorities 
whenever possible ; and, whenever it is not possible, employ- 
ment only of fair houses, prohibition of sub-contracting, and 
payment of trade-union rates of wages ? 

8. The amendment of the Merchant Shipping Acts so as 
(a) to secure healthy sleeping and living accommodation, (b) to 
protect the seaman against withholding of his wages or return 
passage, (c) to insure him against loss by shipwreck ? 



II. A Democratic Budget. 

9. The further taxation of unearned incomes by means of 
a graduated and differentiated income-tax ? 

10. The abolition of all duties on tea, cocoa, coffee, currants 
and other dried fruits ? 

11. An increase of the scale of graduation of the death 
duties, so as to fall more heavily on large inheritances ? 

12. The appropriation of the unearned increment by the 
taxation and rating of ground values ? 

13. The nationalization of mining rents and royalties? 

14. Transfer of the railways to the State under the Act 
of 1844 ? 

III. Social Reform in Town and Country. 

15. The extension of full powers to parish, town, and 
county councils for the collective organization of the (a) 
water, (b) gas and (c) electric lighting supplies, (d) hydraulic 
power, (e) tramways and light railways, (/) public slaughter- 
houses, (g) pawnshops, (h) sale of milk, (i) bread, (j) coal, 
and such other public services as may be desired by the 
inhabitants ? 

1 6. Reform of the drink traffic by (a) reduction of the 
number of licences to a proper ratio to the population of each 



362 MODERN SOCIALISM 

locality, (b) transfer to public purposes of the special value of 
licences, created by the existing monopoly, by means of high 
licence or a licence rate, (c) grant of power to local authorities 
to carry on municipal public houses, directly or on the Gothen- 
burg system ? 

17. Amendment of the Housing of the Working Classes 
Act by (a) extension of period of loans to one hundred years, 
treatment of land as an asset, and removal of statutory limitation 
of borrowing powers for housing, (b) removal of restrictions on 
rural district councils in adopting Part III. of the Act, (c) 
grant of power to parish councils to adopt Part III. of the 
Act, (d) power to all local authorities to buy land compulsorily 
under the allotments clauses of the Local Government Act, 
1894, or in any other effective manner? 

1 8. The grant of power to all local bodies to retain the 
freehold of any land that may come into their possession 
without obligation to sell, or to use for particular purposes ? 

19. The relief of the existing taxpayer by (a) imposing, for 
local purposes, a municipal death duty on local real estate, 
collected in the same way as the existing death duties, (b) 
collecting rates from the owners of empty houses and vacant 
land, (c) power to assess land and houses at four per cent, on 
the capital value, (d) securing special contributions by way 
of " betterment" from the owners of property benefited by 
public improvements ? 

20. The further equalization of the rates in London? 

21. The compulsory provision by every local authority of 
adequate hospital accommodation for all diseases and accidents? 



IV. The Children and the Poor. 

22. The prohibition of the industrial or wage-earning 
employment of children during school terms prior to the age 
of 14? 

23. The provision of meals, out of public funds, for 
necessitous children in public elementary schools ? 



ENGLISH FABIAN PROGRAMME 363 

24. The training of teachers under public control and free 
from sectarian influences ? 

25. The creation of a complete system of public secondary 
education genuinely available to the children of the poor ? 

26. State pensions for the support of the aged or chronic- 
ally infirm ? 



V. Democratic Political Machinery. 

27. An amendment of^ the registration laws, with the aim 
of giving every adult man a vote, and no one more than one 
vote ? 

28. A redistribution of seats in accordance with population ? 

29. The grant of the franchise to women on the same 
terms as to men ? 

30. The admission of women to seats in the House of 
Commons and on borough and county councils ? 

31. The second ballot at Parliamentary and other elections? 

32. The payment of all members of Parliament and of 
Parliamentary election expenses, out of public funds ? 

33. Triennial Parliaments ? 

34. All Parliamentary elections to be held on the same 
day? 



XXVII 

CONSTITUTION OF THE LABOUR PARTY 

As REVISED UNDER THE AUTHORITY OF THE 
LONDON CONFERENCE, 1906 

The Labour Party arose (under the name of "Labour Repre- 
sentation Committee ") out of a conference held in 1900, and held its 
first annual conference in February, 1901. In succeeding years it 
won several by-elections, and at the general election of 1906 it 
captured 29 Parliamentary seats, to which 2 were added on the 
morrow of the election. In that year it adopted its present name. It 
must be carefully distinguished from the Independent Labour Party 
(see p. 356), a purely Socialist organization which is affiliated to it. 

ORGANIZATION. 

I. AFFILIATION. 

1. The Labour Party is a Federation consisting of Trade- 
Unions, Trades-Councils, Socialist Societies, and Local Labour 
Parties. 

2. A Local Labour Party in any constituency is eligible 
for affiliation, provided it accepts the constitution and policy 
of the Party, and that there is no affiliated Trades Council 
covering the constituency, or that, if there be such council, it 
has been consulted in the first instance. 

3. Co-operative Societies are also eligible. 

4. A National Organization of Women, accepting the basis 
of this Constitution and the policy of the Party, and formed 
for the purpose of assisting the Party, shall be eligible for 
affiliation as though it were a Trades Council without having 
the right to vote in the election of the Executive. 

364 



CONSTITUTION OF THE LABOUR PARTY 365 

II. OBJECT. 

To secure the election of Candidates to Parliament and 
organize and maintain a Parliamentary Labour Party, with its 
own whips and policy. 

III. CANDIDATES AND MEMBERS. 

1. Candidates and members must accept this constitution ; 
agree to abide by the decisions of the Parliamentary Party in 
carrying out the aims of thjs constitution ; appear before their 
constituencies under the title of Labour candidates only ; 
abstain strictly from identifying themselves with or promoting 
the interests of any Parliamentary Party not affiliated, or its 
candidates ; and they must not oppose any candidate recognized 
by the Executive Committee of the party. 

2. Candidates must undertake to join the Parliamentary 
Labour Party, if elected. 

IV. THE NATIONAL EXECUTIVE. ' 

The National executive shall consist of fifteen members, 
eleven representing the Trade-Unions, one the Trades-Councils 
and Local Labour Parties, and three the Socialist Societies, and 
shall be elected by ballot at the annual conference by their 
respective sections. 

V. DUTIES OF THE NATIONAL EXECUTIVE. 

The National Executive Committee shall 

1. Appoint a chairman, vice-chairman, and treasurer, and 
shall transact the general business of the party \ 

2. Issue a list of its candidates from time to time, and 
recommend them for the support of the electors ; 

3. Report to the affiliated organization concerned any 
Labour member, candidate, or chief official who opposes a 
candidate of the party, or who acts contrary to the spirit of 
this constitution ; 

4. And its members shall strictly abstain from identifying 



366 MODERN SOCIALISM 

themselves with or promoting the interests of any Parliamentary 
party not affiliated, or its candidates. 

VI. THE SECRETARY. 

The secretary shall be elected by the annual conference, 
and shall be under the direction of the National Executive. 

VII. AFFILIATION FEES AND DELEGATES, 

i. Trade-Unions and Socialist Societies shall pay 15,$-. per 
annum for every 1000 members or fraction thereof, and may 
send to the annual conference one delegate for each thousand 
members. 

2. Trades-Councils and Local Labour Parties with 5000 
members or under shall be affiliated on annual payment of 15^. 
similar organizations with a membership of over 5000 shall pay 
i io^.,the former Councils to be entitled to send one delegate 
with one vote to the annual conference, the latter to be entitled 
to send two delegates and have two votes. 

3. In addition to these payments a delegate's fee to the 
annual conference may be charged. 

VIII. ANNUAL CONFERENCE. 

The National Executive shall convene a conference of its 
affiliated societies in the month of January each year. 

Notice of resolutions for the conference and all amend- 
ments to the constitution shall be sent to the secretary by 
November ist, and shall be forthwith forwarded to all affiliated 
organizations. 

Notice of amendments and nominations for secretary and 
National Executive shall be sent to the secretary by December 
1 5th, and shall be printed on the agenda. 

IX. VOTING AT ANNUAL CONFERENCE. 

There shall be issued to affiliated societies represented at 
the annual conference voting cards as follows : 

i. Trade-Unions and Socialist Societies shall receive one 



CONSTITUTION OF THE LABOUR PARTY 367 

voting card for each thousand members, or fraction thereof 
paid for. 

2. Trades-Councils and Local Labour Parties shall receive 
one card for each delegate they are entitled to send. 

Any delegate may claim to have a vote taken by card. 



PARLIAMENTARY FUND. 

I. OBJECT. 

To assist in paying the election expenses of candidates 
adopted in accordance with this constitution, and in main- 
taining them when elected, and to provide the salary and 
expenses of a national party agent. 

II. AMOUNT OF CONTRIBUTION. 

Affiliated societies, except Trades-Councils and Local 
Labour Parties, shall pay a contribution to this fund at the 
rate of 2d. per member per annum, not later than the last 
day of each financial year. 

On all matters affecting the financial side of the Parlia- 
mentary Fund only contributing societies shall be allowed to 
vote at the annual conference. 

III. TRUSTEES. 

The National Executive of the Party shall, from its number, 
select three to act as trustees, any two of whom, with the 
secretary, shall sign cheques. 

IV. EXPENDITURE. 

i. Maintenance. All members elected under the auspices 
of the Labour Party shall be paid from the fund equal sums 
not to exceed ^200 per annum, provided that this payment 
shall only be made to members whose candidatures have been 
promoted by societies which have contributed to this fund : 
provided further that no payment from this fund shall be made 



368 MODERN SOCIALISM 

to a member or candidate of any society which has not con- 
tributed to this fund for one year, and that any society over 
three months in arrears shall forfeit all claim to the fund on 
behalf of its members or candidates, for twelve months from 
the date of payment. 

2. Returning Officers' Expenses. Twenty-five per cent, of 
the returning officers' net expenses shall be paid to the 
candidates, subject to the provisions of the preceding clause, 
so long as the total sum so expended does not exceed twenty- 
five per cent, of the fund. 

3. Administration. Five per cent, of the annual income 
of the fund shall be transferred to the general funds of the 
party to pay for administrative expenses of the fund. 



XXVIII 

ELECTION ADDRESSES OF 1906 

I. OF THE GERMAN SOCIAL DEMOCRATS FOR THE 
REICHSTAG ELECTIONS, 1907. 

Published in the Voriuarts, December 16, 1906, and signed by 78 
Social Democratic members of the dissolved Reichstag. Observe 
that while the full Socialist programme is only briefly alluded to at 
the close, the general struggle of the party against class-government, 
militarism, Imperialism overseas, Protectionism, and irresponsible 
bureaucracy is presented vividly and with argument. This is a 
regular characteristic of the German party's manifestoes, but too 
much stress should not be laid on it, for the assertion of Socialist 
formula by the party may be considered a matter of common know- 
ledge, of which few German electors need now to be reminded. 

ELECTORS, 

As you are aware, the Reichstag was dissolved on 
December 13. Fresh elections are in prospect, and are to 
take place on January 25, 1907. 

Why was the Reichstag dissolved ? Because there was 
not a majority willing to vote the additional expenditure in- 
curred in the budget-year 1906 over the disastrous revolt in 
South-West Africa, at the figure demanded by the federated 
Governments, the figure of nearly ij millions sterling in 
addition to that of nearly 4 millions already voted this year for 
suppressing the revolt. While part of the Reichstag (the 
Conservatives, the anti-Semites, the National Liberals, the 
Radicals, and the People's party) was ready to vote for the 

369 2 B 



370 MODERN SOCIALISM 

Government's demands, the Centre 1 preferred a resolution 
granting only i million sterling, and demanding also the speedy 
withdrawal of the greater part of the troops, reducing their 
numbers by March 31, 1907, from the 8,000, men contemplated, 
down to 2,500, men. As neither the resolution of the Radicals 
nor the proposals of the Government secured a majority, the 
dissolution resulted. 

You have now to choose new deputies at the polls, in 
accordance with your opinions, not merely upon the position 
German * n South- West Africa, but upon our entire policy at 
Militarist home and abroad. The situation is serious, very 
serious. After a thirty-five years' existence the 
German Empire finds itself in almost complete isolation. For 
the last fifteen years there has been no lack of speeches and 
trips made in many potentates' countries, no lack of presents 
made to the most diverse nations. But the result of all these 
unsought assurances of love and affection is, that to-day 
German policy is regarded with distrust by almost every 
foreigner, and Germany instead of friends has scarcely any but 
covert or overt enemies. Consequently the world-situation is 
such, that despite all the peace-loving assurances, which ruling 
sovereigns give on occasion after occasion, armaments by land 
and sea are continually reinforced, the debts of the nations 
and their loads of taxes are continually mounting up, and a 
feeling of anxiety, as at the advent of an immense catastrophe, 
continually strengthens its hold on the civilized peoples, and 
forbids their peacefully enjoying the fruits of their labour. 

We Social Democrats resisted from the beginning the policy 
which was bound to lead to such results. We demanded that 
instead of these incessant armaments, which only excite the 
mutual distrust of the different States, and stimulate them to 
more and more rivalry in these armaments, and cannot but end 
with a world-wide catastrophe, those in power should invite 
the civilized nations to a common conference, to set a limit to 
this perilous state of things. We have incessantly demanded, 
1 The Roman Catholic clerical party of Germany. 



ELECTION ADDRESS FOR GERMAN REICHSTAG 371 

and we once more demand, that the civilized nations should be 
rivals, not in the building up of great armies and fleets and the 
discovery and establishment of the most perfect man-slaying 
machines, but in works of peace and civilization. The earth is 
large and rich enough to make happiness and well-being 
possible for all, and establish them on a footing of peaceful 
emulation in the works of civilization and culture. 

Instead of this we see the ruling classes, and their solution 
11 If you want peace, you must be armed for war," with which 
they carry on their policy ^f embittering nations in order to 
maintain their own class-rule in domestic affairs. The military 
and naval armaments serve to enrich them. Besides, they 
cherish the thought on the sly, that nations kept in constant 
anxiety about a grasping and warlike foreign neighbour, do not 
apply themselves to improve their social conditions, as they 
otherwise could and would. This policy of international ruin, 
in which Germany to-day sets the pace, we have hitherto most 
decidedly opposed, and we shall continue to oppose it. 

The dissolution of the Reichstag has, in the first instance, 
preserved the nation from coming to know the fresh sacrifices 
which await it. It is our duty to acquaint it with The cost of 
them, that at the polls it may decide about them, militarism. 
The Budget for 1907, which in consequence of the dissolution 
could not be introduced, requires a very considerable increase 
of the financial burdens corresponding to the policy described 
above. The Army estimates, including extraordinary and 
capital expenditure, amount to about 40 millions sterling, or 
over 2\ millions in excess of last year's. It is an open 
secret, that the War Office asked the Treasury for even more, 
because it thought, that in view of the deplorable financial 
position of the Empire it had been too modest in recent years. 
The Admiralty is demanding altogether about 14^ millions, 
i J millions more than for 1906. The public Pensions List 
requires .5,175,000, which, excepting some 130,000 for 
civil servants, is spent exclusively on the pensioners of the 
army and navy. The Imperial Debt requires for interest in 



372 MODERN SOCIALISM 

the year 1907 ^6,825,000, nearly half a million more than in 
1906. Over three-quarters of this interest is paid upon debt 
incurred for military and naval objects. Since 1888, the year 
when the present Kaiser ascended the throne, the Imperial 
Debt has risen from 36 millions to 200 millions, and neverthe- 
less the Budget for 1907 requires a loan of ^13,200,000, so 
that we shall soon reach 250 millions of debt. This burden of 
debt grows in spite of the great increase effected by the 1902 
Customs Tariff in the duties upon the barest necessaries, and 
in spite of the new excise duties voted in the current year. 
The latter include the increased beer-duty, the stamps on 
freightage and deeds, the duty on cigarettes, the duty on 
railway-tickets (to which will be added next spring the abolition 
of return tickets and of free baggage), the motor-car tax, the 
board of inspection's rates and the death duties, the increase 
of district postage for cards and printed matter. In spite of 
all, the Empire remains, as it was, in the greatest embarrass- 
ment for money. Moreover, the capitation assessments, that 
is, the contributions which the separate States have to pay 
proportionately per head of population to the Imperial Ex- 
chequer to supplement the Empire's own receipts from taxes 
and loans, have been fixed far higher than the so-called 
financial reform contemplated. For this wretched state of 
Imperial finance all the bourgeois parties in the Reichstag 
must bear the blame, for they all assented to the Imperial 
Budget. 

There cannot be the least doubt, that the new Reichstag 
must concern itself to find new sources of revenue. We are 
Reform of firmly convinced that this bad financial manage- 
taxation. ment can only be rectified, if those classes which 
must be regarded as the mainstays of the prevailing system, 
are in future made to contribute according to their property 
and income towards bearing the burdens of the Empire. 
Hitherto the comfortable method pursued has been to devolve 
the burdens of the Empire principally upon indirect taxation 
by way of excise and customs on the bare necessaries of life of 






ELECTION ADDRESS FOR GERMAN REICHSTAG 373 

the masses. The masses have hitherto borne the chief part of 
these burdens. Our representatives in the Reichstag will 
reiterate our old demand for the burdens to be imposed on 
those who most easily can bear them, and whose professed 
patriotism induces them constantly to vote fresh additional 
estimates for armaments and unproductive objects, while 
keeping a close fist on their own spoils. We demand the 
introduction of an Imperial progressive income-tax on all 
incomes over .250, and a progressive property-tax on all who 
possess over 2,500 property. Further we demand the 
raising of the Imperial death duties, which instead of the 
.1, 8oo ; ooo in the Budget for 1907, can easily yield more 
than six times that amount. If those who hitherto have been 
the mainstays of the Empire's policy are compelled to make 
sacrifices corresponding to their tall patriotic talk, we are 
convinced that they will harp on a new string. 

Electors, it is for you, by your votes on January 25, 1907, 
to see that those hitherto responsible for German policy 
disappear from the Reichstag. 

As we have hitherto opposed the foreign policy of the 
Empire, so we have opposed its Imperialist policy beyond the 
seas. 1 The German colonies (with one quite overseas 
isolated exception) neither repay the money imperiai- 
sacrificed upon them, nor afford a subsistence for ism * 
any number of German emigrants worth mentioning. The 
sums, which the Empire sacrifices annually for the colonies, 
are in no sort of accord with the profits to be drawn from 
them. The trade with the colonies, after they had belonged 
to us for twenty years, reached in 1905 the inconsiderable 
figure of .3,200,000 for imports and exports combined. Of 
this .2,325,000 was for exports to the colonies, which chiefly 
went in the form of supplies for the German officials and 
garrisons. For this trifling trade we pay in Imperial subsidies 
alone to the colonies, including Kiao-chow, but without 
reckoning the expenditure on native risings, some ij millions 
1 Koknialpolitik. 



374 MODERN SOCIALISM 

annually. The world-commerce of Germany in 1905 reached 
the colossal sum of ^663, 900,000. Therefore the trade with 
the colonies amounts to less than one-half per cent, of it. 

To the sums regularly thus sacrificed on the colonies must 
be added the special sacrifices occasioned in the last ten years 
by native risings, and particularly by the rising in South-West 
Africa, which has already lasted nearly three years. Electors, 
no honourable man can deny, that the cause of these risings 
is the treatment, which the natives have experienced from 
most of the colonists and from the policy of very many of the 
officials administering the colonies. In particular that can be 
proved with chapter and verse as regards the rising in South- 
West Africa. Robbed of their property, often ill-treated, 
almost without rights, given over to be despised and exploited, 
the natives have eventually resorted to their very last shift, 
and attacked their oppressors. Already the sums expended 
on the revolt in South-West Africa, including that by which 
the 1905 estimates were exceeded, and including the supple- 
mentary estimates eventually laid before the Reichstag, amount 
to twenty millions. Nevertheless, the Budget for 1907 
requires over ,3, 300,000 to suppress the revolt; and even 
after its complete suppression large financial sacrifices are 
demanded for unnumbered years. We are threatened in so 
many words with the establishment of a colonial army. 

We regard a campaign so foolish and, on General Von 
Trotha's own admission, so cruel, as a serious blow to the 
national prosperity and honour. We distinguish between an 
Imperialism, which comes to foreign and less civilized peoples 
in order honourably to educate them, to teach them to take 
advantage of and enjoy, for themselves and for all mankind, 
the resources of their soil, and to introduce to them all the 
achievements of civilization in a manner corresponding to 
their lives ; and on the other hand an Imperialism, which aims 
at the oppression, the spoliation, or even the extirpation of 
the natives, natives in whom for all their far lower civilization 
we still see human beings, who must be treated as such, The 



ELECTION ADDRESS FOR GERMAN REICHSTAG 375 

colonial scandals and risings have been showing us for the 
past fifteen years, that our pretended work of Christian 
civilization is often in harshest contradiction to everything that 
is Christian or humane. 1 Lastly, we see in the German 
colonies not a strengthening but a weakening of Germany. 
Prince Biilow himself said in the Reichstag on November i4th 
of this year : " Our situation would to-day be securer and 
easier than it was in the 'eighties if we had not in the interval 
started our overseas policy. . . . What to-day renders our 
situation complex and difficult, are our relations and interests 
overseas. If we were not engaged in this direction, if we 
were not vulnerable in this respect, we should not have 
much to fear on the continent. Then, too, it would be 
easier than it is to-day to avoid clashing and friction with 
England." 

The questions which we have discussed so far, are however 
not the only ones, which occupy the future Reichstag. The 
Governmental policy of taxing and excluding protection 
foreign imports, supported hitherto by an Agrarian and dear 
majority in the Reichstag, has induced an unpre- ( 
cedented rise in the cost of necessaries, especially of meat. 
This policy throws over fifty millions a year into the laps of 
our Agrarians at the expense of the non-agrarian population. 
This policy means not only continual dear food, but 
increasingly dearer food, because the population of Ger- 
many grows by about a million annually, and the pro- 
duction of food within the Empire cannot keep pace with 
it. While thus the Agrarian chiefs reap gigantic profits, 
and are in the seventh heaven of delight, want and misery 
come into millions of German families, the pieces of meat on 
the tables of our workmen, our lower middle-class, and our 
lower official class grow smaller and smaller, and hundreds of 
thousands cease to eat meat at all. The result is chronic 
underfeeding of millions of human beings, with all that it 
implies, diminution of physical strength and capacity for 
effort, multiplication of illnesses, and shortening of lives, At 



376 MODERN SOCIALISM 

the same time the budgets of ths State and the local authorities 
are rapidly swollen by increased expenditure on poor relief, on 
hospitals, infirmaries, and prisons of all kinds, on maintaining 
soldiers and sailors, etc. And that in turn means a further 
rise in the duties. Not only meat, but also bread, butter, eggs, 
and above all milk, the principal food for our children, have 
risen greatly in price already, and the leaders of Agrarian 
organizations are already considering how they can further 
take advantage of the situation, in order to make life still 
harder for the poor and the very poor in town and country. 
If another great crisis comes, the misery of the masses, that 
proceeds from the maintenance of our Agrarian and Pro- 
tectionist policy, will be beyond all computation. If you do 
not wish the hunger-whip of the Agrarian chiefs swung yet 
further over your heads and the heads of your families, elect 
representatives who will make an end of this starvation policy, 
elect Social Democrats. Away with the food-taxers. 

Social Reform in the sessions of the Reichstag from 1903 
to 1906 has fared piteously. The one " great undertaking," 
for which the Government has roused itself, has 
been the Bill on the legal capacity of trade-unions, unions, 
and this Bill offers stones instead of bread to our 
workers. It is inspired by the most reactionary labour-policy 
imaginable. To see that in the next session of the Reichstag 
neither this Bill nor any Bill like it becomes law, is one of the 
first objects which the German working-class has to secure by 
its votes at this election. A legally fixed working- social 
day ; the protection of home-workers ; the assurance reforms 
of the right of combination; a law of free public 
meeting and assembly, worthy of a civilized State and 
recognizing at last the equal right of agricultural labourers 
and women; the extension of the franchise to women; the 
extension, simplification, and amplification of the State 
Insurance legislation ; these and many others are the demands, 
for whose realization the Social Democratic representatives 
in the next Reichstag will have to fight. 



ELECTION ADDRESS FOR GERMAN REICHSTAG 377 

The liberties of the subject and the political rights of the 
citizen, freedom of speech and freedom of opinion, are quite 
insufficiently secured in Germany. Excesses on poetical and 
the part of the police and their inadequate punish- Judicial 
ment are constantly arousing fresh indignation. Refo 
More and more frequent are judicial sentences, which the 
people resent as class-judgments, because they see in them 
the ideas and prejudices of the bureaucracy and the governing 
classes prevailing over the popular sense of justice. So far as 
these conditions can be improved by unvarnished criticism 
and by motions regarding criminal law, criminal trials, and 
the liability of officials to punishment for illegal acts, the 
Social Democratic representatives in the Reichstag have 
thoroughly done their duty ; and the more of them you elect 
to the Reichstag, the more vigorously will they be able to 
do it. 

Electors of Germany, we know that everything which we 
can attain to-day is mere patch-work compared to what ought 
to be attained. We know, that a fundamental 
reform requires a thorough revolution of our Revolution! 1 
economic and social conditions, that complete 
human freedom and equality in the State and in society, 
complete participation in the fruits of civilization for even 
the last among us, can only be achieved by the steadfast 
will and clear intelligence of the great majority of the nation. 
But we know, too, that the conditions, which prevail to-day 
and grow daily more acute, are bringing to pass, thanks to the 
unintelligence of the governing classes, the revolution in men's 
heads; that is, are creating the intelligence and the will to 
transform society on Socialist principles. The stress of the 
times is teaching men to think. Relying on this revolutionary 
influence of things, we go with a good courage into the 
electoral battle. We ask you, so far as your social, your 
economic, and your political interests, or your idealism, impel 
you to the side of the Social Democrats, and the great 
majority must be so impelled, to adhere to us, and on 



378 MODERN SOCIALISM 

January 25, 1907, to vote every man for the Social Democratic 
candidates. 

Our watchword, and yours, for the election is : Down with 
our bungling gaolers ; down with everything that opposes the 
march of mankind towards the full noonday of civilization. 
Up with Social Democracy. 

BERLIN, 

December 14, 1906. 



II. OF THE FRENCH UNITED SOCIALISTS, 1906. 

This (published in the Humanity, April 16, 1906) was issued for 
the whole metropolitan department of the Seine for the general 
elections to the French Chamber in May, at which the United 
Socialists secured 54 seats. The candidates, whose names follow it, 
include such various types as Paul Brousse, G. Rouanet, E. Vaillant, 
P. Lafargue, and Marcel Sernbat. 

CITIZENS, 

For the first time all the Socialists in France are going 
into the political fray closely united, arrayed against the 
many-labelled bourgeoisie and asserting all the claims of the 
proletarian class. The international congress at Amsterdam 
decided that, as there was only one proletariate, so there should 
be only one Socialist party ; and our recent national congresses 
have added, that whoever was not with us should be fought as 
a foe. Therefore in every constituency of the Seine, as every- 
where in the provinces, there is only one candidate, in voting 
for whom you are invited to express your desire to set men 
wholly free through the realization of the Socialist ideal. 

Keener and harsher than ever you see the struggle on foot 
in the society of to-day between the idle class of propertied 
capitalists and the toiling class of propertyless wage-earners. 
On the one side misery, despair, and disease thin the ranks of 
the workers, who create all the wealth; on the other, the 



FRENCH ELECTION ADDRESS, 1906 379 

profits and the claims of capital are growing under our eyes. 
The more the workers produce, the more miserable they make 
their position. Anarchy reigns supreme in the economic 
system of to-day, and leads fatally to crises of cruel unemploy- 
ment. Thus the wage-earners are exposed to every uncer- 
tainty in life, and it is they who suffer from the system of free 
competition so dear to bourgeois economists. Nor does 
freedom exist for the proletarian enslaved in factories, work- 
shops, or great shops ; for property, the fruit of toil, the 
guarantee of independence, Ms the privilege of a class which 
uses it as an instrument of tyranny. The laws of to-day, 
accumulated in the bourgeois codes, aim only at securing for 
those who detain the nation's wealth the supremacy over those 
who produce it, and the political and economic power which 
settles how these laws shall be applied. 

This state of things cannot last much longer. You have 
only to make up your minds. Already you are the many, and 
every day the agglomerations of capital increase the multitude 
of those left without property. Moreover, you have on your 
side science ; you have on your side the observation of facts 
in history, and the progress of capitalistic production, which is 
collectivizing labour. 

The Socialist party, to which you will come, proclaims that 
all have the right to live, and all who are able to be producers 
have the duty to work. With us you will wish to give every 
man his dignity and freedom, in enabling him to own his 
means of work ; and thus you will create the economic and 
social equality, without which the pretended equality before 
the law and political equality are shams. With us you will say 
that you want peace, in which to seek and win your com- 
plete emancipation; you will say that you have sacrificed 
yourselves enough, and that the day is over when " the rich 
get the poor to fight their wars for them." You will protest 
against a militarism which squanders so much money and 
so many lives. In a word you will pin your faith to 
the principles of Socialism ; the workers to agree and act 



38o MODERN SOCIALISM 

internationally; the proletariat to organize, politically and 
economically, as a class party to capture the Government and 
to socialize the means of production and exchange, that is to 
transform capitalistic society into a collectivist or communist 
society. 

With us you will stand to realize the society of harmonious 
production, fair distribution, and brotherly solidarity ; and you 
will say so if you vote for the candidates which the Federation 
of the Seine puts forward. 



III. OF J. R. CLYNES, M.P., AND G. D. KELLEY, 
M.P., 1906. 

This address is interesting for a special reason. In Manchester 
the Labour Representation Committee ran two candidates : Mr. 
Clynes, a Socialist nominated by the Independent Labour Party, and 
Mr. Kelley, a decidedly old-fashioned trade-unionist, nominated by 
the Lithographic Printers. They both subscribed the following 
address, which may be taken therefore as embodying the points 
of agreement between the newer and the older schools. It will be 
seen how distinctively Socialist the thought throughout is, despite 
the absence of revolutionary phrases. 

Having accepted an invitation from the representatives of 
organized Labour to come forward as a candidate in this 
election, I now appeal for your votes for the principles and 
policy which I support. These principles aim at removing 
conditions which at present give the greater part of Labour's 
produce to a few privileged landowners and capitalists. 

The total wealth of the country increases yearly, but the 
mass of the people who make it remain poor. The load of 

Labour becomes heavier, and the dread of being 
Principles. . , . T 

unemployed is greater than ever. Increasing trade 

and greater power to produce should mean greater comforts 
and better pay for the industrial classes. Unfortunately, the 
landlords and syndicates have reaped the rewards, and kept 
the wage-earners dependent on them for daily bread. Improved 



MR. CLYNES, M.P., AND MR. KELLEY, M.P. 381 

conditions for workers mean better conditions for shopkeepers, 
traders, and other business people, whilst high rents, charged 
by the landlords for the liberty to live, to trade and work 
on the land, hinder the trade and commerce of the country and 
injure the whole community. 

Better conditions can only be attained by great changes in 
the law, and to effect these changes different men must be sent 
to make them. In justice, I place the rights of the 
people before the claims of party, and believe the P( 
interests of a community c?*\ best be served by a new force in 
politics, which will act on independent lines and be free to 
oppose or support any Government just as the good of the 
people, and not the interests of a section, may require. 

I support Free Trade, because trading is better if free from 
the tariffs which Protectionist countries impose. Protection in 
other lands has not given better conditions to the Free Tpade 
workers. It would not keep goods out of this 
countiy, but would make them dearer, increase our cost of 
living, and further hamper the trades of the country, particularly 
the cotton and machine trades of Lancashire. The protection 
the trades of this country require is protection against trusts and 
monopolies, a crushing of landlordism, and the burdens of 
heavy railway rates, mining rents and royalties. 

I support the principle of useful employment being found 
for willing workers whom other employers do not engage. 
All waste labour is lost wealth, and all persons Un- 
should have not merely a chance of receiving 
charity when destitute, but the certainty of earning an honest 
living. 

I support the claim of Trade Unions for legislation which 
wiil place them on an equal legal footing with employers. The 
present law prevents workmen doing what employers Tpade Union 
are free to do, and it permits employers to secure Law - 
damages from unions who act only in persuit of their members' 
interests, whilst unions are unable to obtain damages for losses 
sustained by them. 



382 MODERN SOCIALISM 

I believe iir Ireland being governed according to Irish 

ideas. Other ideas have been the means of driving Irishmen 

from their own country, and have given neither 

prosperity nor satisfaction to it. We prize the 

right to rule at home, and our colonies are a good example 

of the loyalty and contentment which follow Home Rule. 

I am prepared to support measures to end the disgraceful 
use of cheap Chinese labour in South Africa. The heavy 
Chinese price paid in men and money for that territory 
labour. should cause us to seek the natural development 
of its agriculture and industries by white labour, instead of 
permitting a few mineowners to make fortunes rapidly at the 
cost of enduring harm to the country. 

I believe in a system of education maintained by the State 

which will give equal opportunities to all, free from 
Education. 

sectarian bias, controlled by the directly-elected 

representatives of the people, and making provision to prevent 
children from starving. 

Pensions are now given to the rich. I am in favour of 

Pensions. extending this principle to the poor, and increasing 

the national income by readjustment of taxation, 

so as to obtain for the community all land and other values 

created by the public themselves. 

I am against existing taxes on the common necessaries of 
life, and believe that, without the loss of any needful safe- 
Taxes guards, National Expenditure can be reduced. I 
am in favour of enlarging the powers of Municipal 
bodies, so that the Housing question and other important 
domestic subjects can be better dealt with. 

I will support an eight-hours' working-day in our various 
trades, believing it to be equally right for the law to restrict 

working hours as it is for employers to fix prices 
General. ... r 

and conditions. I am in favour of making the 

land of this country the people's land, and extending and 
improving the Workmen's Compensation Act. I will support 
electoral reform which will ensure votes for persons and not 



MR. WILL THORNE, M.P. 383 

for property, and also a reform of the Corrupt Practices Act 
which will prevent men from buying seats in Parliament by 
means of big donations and grants of money. 

Should you return me to Parliament, I shall do my utmost 
to justify your confidence and to serve the best interests of 
the division and that of the community in general. 



IV. OF WILL, THORNE, M.P., 1906. 

Mr. Thorne, who captured South- West Ham by a majority of 
5237, is the only member of the Social Democratic Federation to 
obtain a seat in Parliament. He was elected under the auspices of 
the Labour Representation Committee, being nominated by the Gas- 
workers' Union, of which he is general secretary. 

At the unanimous request of the West Ham and District 
Trades and LaDour Council and of the Socialist and Labour 
organizations of the borough, and that request having been 
endorsed at a number of public meetings held in all parts of 
the division, I venture to again appeal for your support and 
suffrages in the interest of Labour and Social Democracy. I am 
a resident in your constituency, and I have now for a good 
many years lived and worked in your midst, and I claim to 
understand something of your wants and aspirations. For the 
past 15 years I have been a member of the town council of West 
Ham, and during that time I have assisted in every public 
movement which had for its object the uplifting and improve- 
ment of the great working-class population of this borough. 

My sympathies are with the mass of the people, and I feel 
keenly the hardships and sufferings which the majority of my 
fellow-workers have to endure in their struggle for the means 
of existence. 

During my lifetime I have worked hard to reduce the hours 
of labour, to raise wages, to improve conditions, and to place 
within the reach of all, more of the social comforts and 
enjoyments to which their labour entitles them. 



384 MODERN SOCIALISM 

As a Social Democrat, I am convinced that that question 
which Thomas Carlyk once called " the condition of England 
question " is the most important problem which is before us to-day ', 
and that the final emancipation of the people will never be achieved 
until the means and instruments of production, distribution, and 
exchange are taken over and worked collectively for the common 
good of all. 

As one who has taken an active part in every advanced 
Social and Labour movement for the past twenty-two years, I 
am amazed at the depth of industrial and economic misery 
brought about by the reactionary legislation of the late Govern- 
ment, especially in the direction of curtailing the rights of the 
people in the control of Education, in the absolute disregard 
of public opinion, as expressed in the Chinese Labour Ordin- 
ance, which again introduces the principle of chattel slavery 
into British administration, and finally by their obvious attempt 
to cover all this infamy by juggling with the Fiscal arrange- 
ments of the country. Needless for me to say, I am a 
determined opponent of all attempts to curtail the rights and 
liberties of the people, in Education, Colonial Administration, 
and the imposition of any Tariff burdens on the food of the 
people. 

Whilst declaring myself against all reactionary legislation, I 
also suggest that a mere policy of negation will not carry us 
very far in the direction of social progress, therefore : 

I am a strong advocate for a Legal Eight-Hours' Day ; State 
Maintenance of all children in our public schools, thereby pre- 
venting the physical deterioration now so evident in our large 
towns and cities ; extended powers being given to local 
authorities to deal with the Housing of the working classes in 
a more efficient manner than is possible to-day. I am also 
strongly in favour of altering the present system of distraining 
for rent rent debts should be collected in the same manner 
as other debts, in order to take from the landlord the powers 
he now possesses to sell up the workers' homes ; Nationalization 
of the land, canals, railways, mine rents, and mineral royalties^ 



MR. WILL THORNE, M.P. 385 

the private ownership of which acts as the real barrier to British 
industry in the markets of the world ; the strict enforcement 
and extension of the Cheap Trains Act, in order to prevent 
the overcrowding and general inconvenience to the workers 
of this and all other districts. As a member of the Trades 
Union Congress Parliamentary Committee, I am conversant 
with the defects of the present Workman's Compensation Act, 
the Factory Acts, and the law affecting trade-unions, and 
will support every effort to amend such Acts, in order to make 
them of more benefit to the workers as a whole. 

The unsatisfactory conclusion of the Committee on Old 
Age Pensions shows how reluctant the politicians of both 
parties are to do anything for the workers, and I pledge myself 
if elected to support pensions for all those who, through 
eld age, mental or physical infirmity, are unable to maintain 
tJiemselves. 

The most pressing problem of the present day is un- 
doubtedly the question of Unemployment, and in common with 
all Socialist and Labour representatives , I shall endeavour to 
secure the amendment of the present Unemployed Workmen 
Act in such manner as will ensure that the Government shall 
provide all moneys necessary for wages, etc., which at the 
present time depend entirely upon voluntary contributions, and 
to remove the obnoxious and degrading clauses contained in 
the orders of the Local Government Board. 

So far as political questions are concerned, I stand for the 
most advanced programme : Universal adult suffrage, shorter 
parliaments, second ballot, payment of members and election 
expenses out of the national exchequer, graduated taxation of all 
incomes over ^300 per annum, taxation of land values, extension 
of the principle of graduated death duties, nationalization of the 
poor and education rates, free, secular, and compulsory education, 
and the abolition of all hereditary authority. I have always been 
an advocate of the legislative independence of Ireland, and should 
give my hearty support to any proposal for complete Home 
Rule that may be brought forward. 

2 c 



386 MODERN SOCIALISM 

On the question of temperance reform, I advocate the 
municipal ownership and control of the liquor traffic. 

I am entirely opposed to compulsory vaccination, and 
regard the present state of the law as illogical and absurd. 

In foreign politics, the policy of the late Government has 
been one of bluster and bolt where the great Powers have been 
concerned, and of arrogant aggression towards the weaker 
nationalities. It is to the interest of our class that British 
foreign policy should be firmly and definitely in the direction 
of international peace, and against all aggressive wars and 
expeditions. 

It is impossible within the limits of this address to deal at 
length with all matters of pressing interest at this time, but I 
hope during the course of the election to have the opportunity 
of explaining my programme more fully. My past work on 
behalf of my class is a guarantee of my bona-fides in this 
election, and I can only assure you that, whatever party may 
be in power, my support will be given to any measures, no 
matter by whom brought forward, which make for the benefit 
of the people, and my strenuous opposition will be offered to 
anything which is against their interests. 

In this election, you, the working-men of South-West Ham, 
have your own cause, your own interests in your own hands. 
You are the arbiters, you have to decide whether you will 
elect one who, during the whole of his active life, has been a 
strenuous advocate of your interests, or one of those who, by 
upholding the present system, help to keep you in poverty and 
misery. 

I only ask you to remember that a vote given to me is a 
vote on behalf of the down-trodden and oppressed, a vote on 
behalf of the famished children in our schools, and of the dis- 
inherited in our pauper bastilles. It is a word of hope to the 
struggling masses in all parts of Great Britain, and of encourage- 
ment to all who suffer under the iron heel of Capitalism ; a 
blow struck for the workers in that war between Capitalism and 
Labour, which must be waged relentlessly until the emandpatio?i 



MR. WILL THORNE, M.P. 387 

of the workers is achieved by the abolition of the Capitalist 
system. 

In the hope that these things will be remembered by you 
in this election, I leave the matter in your hands, confident in 
the result if you do your duty to yourselves and your class. 



XXIX 

THE FUTURE 
BY ANATOLE FRANCE 

From the novel : " M. Bergeret a Paris." The adhesion of Anatole 
France to Socialism is remarkable, because he is the lineal successor 
of Voltaire and Diderot, and represents a linking of the old revolu- 
tionary criticism to the new. His visions may also be suggestively 
compared with those in William Morris's Hews from Nowhere. 

" WE shall all be happy, papa." 

" No. Divine pity, which is the beauty of souls, would 
come to an end when suffering ended. That will never be. 
Moral evil and physical evil, unceasingly resisted, will un- 
ceasingly share with happiness and joy the empire of the world, 
as the nights follow the days. Evil is necessary. Like good, it 
has its spring deep in nature ; the one could not be dried up 
without the other. We are only happy because we are unhappy. 
Suffering is the sister of joy ; the breath of these twins passes 
over our harp-strings and makes them sound in harmony. If 
happiness alone blew on them, they would give out a monotonous, 
tedious sound, like silence. But to the inevitable evils, to those 
evils at once common and august which result from the state of 
mankind, there shall no more be added the artificial evils, which 
result from the state of our society. Men will no more be 
deformed by an unfair labour by which they rather die than live. 
The slave will come out of the ergastulum, and the factory 
no longer eat up men's bodies by millions. 

388 



ANATOLE FRANCE 389 

" For this deliverance I look to machinery itself. Machi- 
nery, which has crushed so many men, will come gently and 
generously to succour soft human flesh. Machinery, first 
cruel and harsh, will grow kindly propitious, friendly. How 
will it change its spirit? Listen. The spark which sprang 
from the Leyden jar, the little subtle star which manifested 
itself last century to the wondering physicist, will work this 
marvel. The unknown which has let itself be conquered 
without letting itself be known, the mysterious captive force, 
the intangible of which our hands take hold, the tame thunder- 
bolt bottled and discharged upon the innumerable wires which 
cover the world with their network electricity, will carry its 
strength, its succour, wherever it is needed, into the houses 
and rooms, to the home where father, mother, and children 
will be separated no more. It is no dream. The stern 
machinery, which shatters body and soul in the factory, will 
become domesticated, homely, familiar. But it is nothing 
no, it is nothing that pulleys, cogs, connecting-rods, cranks, 
grooves, and flywheels should be humanized, if men remain 
iron-hearted. 

" We look for, we call for, a change more wonderful still. 
What does the employer say to-day ? That he is the thinking 
spirit, and that without him his army of workers would be like a 
body deprived of understanding. Well, if he is the mind, let this 
honour and joy be enough for him. Need a man glut himself 
with wealth because he is the mind that thinks ? When the 
great Donatello cast a bronze statue with his companions, he 
was the soul of the work. The price which he received from 
prince or citizen he used to put in a basket which was slung 
up by a pulley to a beam of the workshop. Every companion 
untied the rope in his turn, and took from the basket according 
to his needs. Is there not joy enough in producing through 
one's understanding, and does this advantage dispense the 
master-worker from sharing the profit with his lowly fellow- 
workers ? But in my republic there will no longer be profits 
or wages, and everything will belong to us." 

2 c 3 



390 MODERN SOCIALISM 

" Papa, that's collectivism," said Pauline, quietly. 

" The most valuable things," replied M. Bergeret, " are 
common to all mankind, and were always so. Air and light 
belong in common to everything that breathes and sees daylight. 
After selfishness and greed have toiled for centuries, in spite 
the violent efforts which individuals have made to seize and keep 
treasures, the private wealth which even the richest among us 
enjoy is trifling in comparison with what belongs to all men 
without distinction. Even in our own society do you not see that 
the pleasantest or the most splendid properties roads, rivers, 
forests that once were the king's, libraries, museums belong 
to every one ? No rich man possesses any more than I do this 
ancient oak of Fontainebleau or that picture of the Louvre. 
And they are more mine than the rich man's, if I know better 
how to enjoy them. Collective ownership, which people fear 
as a distant monster, surrounds us already under a thousand 
familiar forms. It is alarming, when you announce it ; whereas 
the advantages which it procures are already in use." 



INDEX 



Agrarianism, Socialism and, xxv,' 

xli, xlii ; Vandervelde's views, 

198 et seq. ; German views, 220 

et seq. 

America, North. See United States 
Anseele, biographical note, 285 ; 

on Socialism and Co-operation, 

285 et seq. 
Arbitration, compulsory industrial, 

xxv, xxvi, 1 02, 360 ; cp. 60, 61 ; 

Millerand's "Strike Bill," 157- 

160. See Industrial tribunals 
Archimedes, 293 
Argyll, late Duke of, 236 
Armaments, Socialist opposition to, 

173,370-372. See International- 

ism 

Asquith, Right Hon. H. H., 93 
Australia, Socialistic legislation and 

parties, xxv, xxvi ; "Victorian 

wage-boards, 102, 360 ; studied 

on the Continent, 159 
Austria, position of Socialism, xiii ; 

xxiii ; party's programme, 334 

et seq. 
Avenir de Plaisance, at Paris, 295 



Babeuf, 339 
Bakunin, Michael, xvi 
Bastable, Professor C. F., 231 
Bebel, August, biography, I ; on j 
Utopianism, 1-3 ; on Theory of 
Increasing Misery, 189 ; on the 
General Strike, 191-197; 219, 

222 

Belgium, character of Labour Party, 
xxiv ; its check superficial, xiv ; 
its programme, 323 et seq. ; 



general strikes in, xxxiv n. ; 

agriculture in, 198 et seq. ; union 
of Socialism with Co-operation 
in, 285 et seq. 

Bernstein, Eduard, xlvi, 189 

Bismarck, \T$ et $eq u 

Blanc, Louis, xxxi 

Bomelburg, 192 

Booth, Charles, 313 

Bordeaux Congress, 163-184 

Bowley, Professor A. L. , 116-118 

Briand, Aristide, xiii 

Brousse, Paul, 378 

Burns, John, biographical note, 
265 j on municipal Socialism, 
265 et seq. ; his L.C.C. pro- 
gramme, 282 ; his Parliamentary 
programme, 283, 307 



Campbell-Bannerman, Right lion. 
Sir H., 314 

Capital, concentration of, xxvii n. ; 
effect of private ownership of, 
xxviii ; two methods of expropri- 
ating, xxviii. See passim^ es- 
pecially 14 et seq.) 90 et se</. t 

378-379 
Capitalist class, Morris on, 76-79 

et seq. ; Kautsky on, 127 et seq. ; 

risks from its emigration, 239, 240; 

money capitalists, 128 et seq. 
Capitalist system, 15 et siq.> 50, 

71-80 

Carlyle, Thomas, 384 
Chamberlain, Right Hon. J., 134, 

315 
Chambers of Labour, 145. See 

Labour Councils 
Chelsea Board of Guardians, 246 n. 



39 1 



39 2 



INDEX 



Classes, abolition of. See Pro- 
letariate, rdle of 

Class-State, Sarraute on, 165-167 ; 
Jaures on, 168-170 ; cp. 379 

Class-war, economic basis, xxviii, 
xxix ; first seen by St. Simon, 
xxxi ; as basis of a party, xxxiii, 
xxxv ; Liebknecht on, 4-8, 10 ; 
Kautsky on, 115 et seq. ; Jaures 
on, 167 etseq. See Revolutionary 
Socialists, Historical Process, 
Proletariate 

Clemenceau, Georges, xii, xiii, 56 

Clericalism, Socialism and, xxv, 
xxviii 

Cobden, Richard, 235, 236 

Colins, 214, 215 

Collective bargaining, private, xliv- 
xlvi, 99, 100 

Collectivism, contrasted with Com- 
munism, 83 -88 ; its growth to- 
day, 50, 249 etseq.; cp. 399 

Combination, right of, 145 ; general 
strike, might be employed to 
secure, 190, 192 

Commune, the Parisian, 35 

Communism contrasted with Col- 
lectivism, 83-88 

"Communist Manifesto," origin 
of, 35 ; programme suggested in, 
36, 186, 187 

Companies, joint-stock, 27, 130-132 

Conseils du Travail. See Labour 
Councils 

Constitutionalism, xxxiii, xxxiv, 49, 
54,63 

Contracts, wage-clauses in public, 
xlvi, 148, 152, 246 et seq.; cp. 
Fair Wages Movement 

Crises, commercial, Marx's theory 
of, 25 



David, Dr. Eduard, 186, 225, 228 n. 
Democracy, its effect on Socialism, 
xx, xxi, 165, 1 68 et seq.; cp. 61-62 
Denmark, xiv, xxii, xlii 
Direct employment, 241 et s(q. 
Donatello, 389 



Drink traffic 
Local option, 284 
Public ownership and control, 

328,355,358,362,386 
I Gothenburg system, 362 
High licence, 362 



Education, xxix, 58 et seq. See 
Minimum, policy of national. In 
programmes German, 320 ; Bel- 
gian, 326, 331 ; Austrian, 337 ; 
French, 347 ; English S.D.F., 
354, 355J I.L.P., 358; Fabian, 
362-363 ; in Mr. Clynes's ad- 
dress, 382 

Emerson, 248 

Employment agencies, 148, 154 

Engels, F. f biographical note, 14 ; 
doctrine, 14-37 ; 187 

England, her evolution following 
the German, 132, 133 ; compared 
with the United States, 90 et seq. 

Entrepreneur ', elimination of private, 
261-264 

Erfurt Programme, 317-322 

Expansion of markets, why de- 
manded, 24 

Exploitation of proletariate, 15 
et seq. ,71 et seq. ; still increasing, 
II5-H9 



Fabian Society, note on, 359 ; basis, 
359 J questions for Parliamentary 
candidates, 360 ; on direct employ- 
ment, 242 et seq.; xi, 90 
I Factory regulation, why need for, 
95-98 ; conduces to efficiency, 
249 ; less important to regulate a 
given industry for all nations 
than to regulate all industries for 
a given nation, 234-235 ; 59, 146, 
155. See all programmes 

Fair Wages movement, 243-249. 
See Wage-clauses in public con- 
tracts ; Wages, regulation of 

Farrer, late Lord, 231 

Fatalism, alleged Marxian, IO 
i Ferri, Enrico, xvi, xliii n. 
I Financiers. See Money capitalists 



INDEX 



393 



France, position of Socialism, xii, 
xxi, xxxvi ., 48; "French 
Socialist Party," its Tours pro- 
gramme, 338 et seq. ; its Bordeaux 
debate, 163 et seq. ; the " United 
Socialists," 337, their election 
address, 378 et seq. ; social reform 
in France, 150 et seq. 

France, Anatole, 388-391 

Franchise, general strike might be 
employed to defend the, 190 et 
seq. ; universal adult, see all pro- 
grammes ; immediate extension 
to women on same terms as to 
men, 358, 363 

Free Trade, Socialism and, xxxix- 
xli, 22<)ets(q. y 375, 381, 384 



General strike, the recent preaching 
of the, xv-xvii j previous recent 
history, xliv n. ; Jena resolution 
on, 189 et seq. ; Bebel on, 191 
et seq. ; cp. in French programme, 
343-344 

George, Henry, 209, 214 

Germany, position of Socialism, 
xxii, xxiii ; the Anti-Socialist 
Law, 138 ; history since, 140 et 
seq. f compared with England, 
I 3 2 ~ I 33 ; agrarian question, 
220-228 ; party's programme, 
317 ; election address, 369 ; atti- 
tude on general strike, 189 et 
seq. ; on militarism, 370 et seq. ; 
on Protective tariffs, 372, 375 ; 
on Imperialism overseas, 373- 

375 
German Emperor, the present, 142, 

H3 

Ghent, Co-operation at, 298. See 

"Vooruit," Anseele 
Gladstone, 133, 134 
Great Eastern Railway Company, 

2 57 
"Great Industry." See Industrial 

revolution 
Guesde, Jules, 48, 170, 176, 181, 

339 



II 



Hardware trade, integration of 

industries in, 260, 261 
Health, public, 90, 172. See 

Minimum, policy of national 
Hegel, influence of, xxxii 
, Heine, 120 

j Herve, G., speech of, 163 
j Higgling of the market, 94 
i Historical process, Marxian view 
j of the, 4-1 1, 15 et seq. ; cp. 50, 
68 ft seq. ; affirmed in pro- 
grammes, 317, 324, 334, 339, 352 
History, "materialist conception" 

of, 14 

Holland, xxxiv n. 
Hours of labour, no, in, 145, 148, 

151. See the programmes 
Housing, in, 141, 172, 282, 283, 

362, 382, 384 
Hyndman, H. M., 307 
Hypothesis, Collectivism as a, 52, 
S3, 57, 5S 



Imperialism (overseas), xxxviii, 308, 

373-375 

Independent Labour Party, genesis 
and history, 305-308 ; programme, 

357-358 
Industrial revolution, xxix, xxx, 15 

et seq. 

Industrial tribunals, 145, 153, 329 
Inspection of factories and mines, 
59, 97 J 45 et se< l- j workmen 
inspectors, 147 

Insurance, workmen's, 138, 152 
Integration of industries, 255 etseq.; 

cp. 27 

"Intellectuals," 77, 121-123, 288 
Internationalism and Socialism, in 
St. Simon, xxxi ; in Marx, and 
since, xxxvii, xxxviii, n, 55; in 
German programme, 319 ; Bel- 
gian, 324 ; Austrian, 336 ; French, 
345 ; S.D.F., 353 
Italy, position of Socialism, xiv, 
xxi ; recent party split, xvii 






INDEX 



I 



Jaures,Jean, his point of view, 167- 
180; debate withM. Clemenceau, | 
xii ; leadership of the " French j 
Socialist Party " (reformist), 339 ; ' 
formation of the " United Social- ; 
isfs," xv, 339 ; the " poet of ; 
Socialism," 53 ; xx.xvi, xxxviii, ; 
48, 293, 301 

lefferson, Thomas, 91, 98 

Joint-stock companies, 27, 130-132 i 

junkers, the Prussian, 144, 220 n> 



Kn.utsky, Karl, 114 ft s?q., 187 et 

seq., 215, 227, 228 . 
Keir Hardie. J., biographical note, 

303; far-seeing views in 1894... 

303 et seq. ; in 1 903... 305 et seq. 



Labour bureaux, 148, 154 
Labour Councils, 155. See Cham- 
bers of Labour 
Labour Electoral Association, 306, 

37 

Labour P^rty (formerly Labour 
Representation Committee), con- 
stitution ind objects, 364; history 
till 1903, xliv/xlvi, 310 e.t seq. ; 
position in 19071 xi-xii ; election 
addresses, 380-387 

Labrioia, xvi 

Lai 'sser-J Intire, 99, 136 et seq, 

Land. See Agrarianism. Land 
nationalization, 214-216 ; see all 
programmes 

Lassalie, Ferdinand, biographical 
note, 38 ; his "brazen law," 38 
et rcq. ; view of working-class 
"misery," 42 ei seg., 187; uni- 
versal suffrage as instrument, 44- 
47 ; xix, xxxi, xx.vii, xxxix . 

Liberty and property, 49 

Liebknecht, Vv'ilhdm, on trade 
unions, xliii ; on political prin- 
ciples, 4-13 ; 53, 222. Se-c Inter- 
nationalism 

London County Council, 242 et ?eq. 



London School Board, 242 
London and North-Western Rail- 
way Company, 256, 257 
Lu'beck Congress, 185-188 
Luxemburg, Rosa, xvi 



M 



Markets, expansion of, 24 
Marshall, Professor Alfred, 246 
Marx, Karl, theory, 14-34 ; cp. 4- 
13 ; early programme, 35~37 ; 
xix, xxxii, xxxix ., xli, 115, 124, 
132, 164, 185, 187, 271 
Marxists. Sec Revolutionary So- 
cialists 

" Materialist conception " of his- 
tory, 14 

Midland Railway Company, 2^7 
Mill, J. S., 198, 237, 246, 306" 
Millerand, Alexandre, account of 
his measures, 150-162 ; views in 
1896.. .48; in 1903.. .56; hi> 
policy in first Ministry discussed, 
164 et seq. ; entrance into Cle- 
mencean Ministry, xiii j xxi, xlvi, 

I35 33 2 

Minimum, policy of the national, 

109 et seq., 236 et seq. ; need not 

be international, 237 
Misery, theory of increasing, 114, 

115' 185-188 
Money capitalists distinguished from 

industrial, 128 et tfq. 
Morris, William, 65 et scq.^ 307, 

388 
Municipalization, xxi ., xlvi, 27, 

51, 249 et seq., 282, 283. See the 

programmes 
Municipalized industry, in London, 

249 et seq. ; Birmingham, 252, 

253 ; Liverpool, 253 ; Manchester, 

253, 254 ; Battersea, 274-282 



N 



Nationalism. See Internationalism 
Nationalization of industries, 27 ; 
of land, 214 et seq. See programmes 
National minimum. See Minimum 
New Zealand, xxv, xxvijiO2, 159,360 
Norway, xiv 




Insor, 1. 6. 
Modern socialism. 



39