W H A T I S S O C I AL l S M ?

AN E XPLA NAT IO N A ND C RI T I C I S M
OF TH E DO C T RINES A ND PRO
"
PO S A L S OF S C I E NT I FI C

BY
JA M E S E DW AR D L E RO S S I GN O L

w
D ean of th e C ol l ege of B usiness A dministratio n , U niv ity
ers of

Nbak A e r s a, u th o r of
“
S t t S o ia l i m
a e c s

m Ne Zea l a d, n ”
Etc .

T H O MA S Y C ROWELL C OM PA N Y
.

PUB L I S H ERS
 PR EFAC E
The d ar ing and dr eadful experiments of the
Russian B olshevists have called attention in a
striking way to the fac t that they as pr ofesse d ,

followers of Karl M arx are zealous adherent s,

“ ”
of scientific socialism though not of the l ate r
, ,

more evolutionary type The revolution of

.

N ovember 7 1 9 1 7 was not a spontaneous u p ris

, ,

w
ing of the working class but an insurrection ,

ca refully planned and execut ed b y a gr oup of

conspi rator s ho had long awaite d an op por
tu nity of putting thei r th eo ries to the test on a
gigantic scale .

Moreove r the leading socialists thr oughout the

,

wo rld though for the most part evolutionists

,

and anti B olshevist are Mar xists of one kind or

-
,

another and are watching waiting and wor king

, ,

for the social r evolution A s th eir gosp el makes

.

a str ong app eal to millions of p eople it is a ques ,

tion of more than academic inter est whether the

Marxian theories are really scientific or whethe r ,

they are only sophistri es masque rading in scien

tifi c ga rb .

Fortunately the Marxian system arr anges

,

its elf in a s eri es of p r opositions which p r oceed in

Vi P REFA C E
logical or der like the theorems of Euclid and the ,

wr iter has taken advantage of that to examine

them one by one and as clos ely r elat ed parts of
,

a single whol e A consid er able par t of an earlier

.

“
wor k O r thodox S ocialism now out of p rint
, , ,

has been includ ed in the p r esent volu me though ,

altogether revised and r ewr itten .

The writer desi res to thank several of his

fr iends and coll eagues especially Pr ofesso rs F , .

M Fling Guernsey J on es D onald M cF ayden

.
, , ,

G O V irtue J E Ki r shman P W Ivey

. .
, . .
, . .
,

T T Bullock M r L eo P a sv ol sky M r J A
. .
, .
, . . .

C eJnar and M r Maurice Smith for h elpful eriti

.
,

cism and suggestions .

J E L E R O S S I GN OL . . .

L incol n , N eb r a ska ,
A u gu st 25, 1921 .
 C O N TE N T S

I N TRO D U C TIO N
r —
O i gin of M od n So iali m So iali mer c s c s is a Ca i at r c u re

Cha a t f th r c er —
M ov m nt T h o e e e e App al f
e o S o

c ial is m P a ge 1

T H E C RE E D OF S O C IALI S M
Typ es o —
f So iali ts T h F o nd
c f M od n Soci al i m
s e u er o er s
—
Hi gh C iti i m So iali m i N t a S i n Pa ty
er r —
c s c s s o c e ce r
— es r e —
U n i ty D i d T he Co muni t M ani f to O thodox
m s es r

Do t in co f So iali m—T h P a tial D i

r e s c s e r s

w
en ts er s P g 7 a e

II
T H E S E C T S OF S O C IALI S M
Pr t hr istia n —
Social ism Fab i a n
—
Sociali sm S t ate — —
S ociali sm Syndi cali sm Sabotage
T he G en er al S t r ik e— T he I ndustr ial Union —T he
I W W —G uild So ciali sm— Bol shev i sm—M a r x a
— —
. . .

P —
D u al ersonali ty Commu ni sm A na r chi s Soc ial
m
ism D i ffer ent i n Ev er y Co u nt r y—Amer i can So c iali st
P a ti
r es P a ge 2 2

III
T H E E C O N OMI C I N TE R P RETATIO N OF H I S TORY
—
H g lian M thod T h M a xian T h o y—Appli a
w
T h e e e e e r e r c
—
tion M od n E xampl — Cont adi tion —N n E
s er es r c s o -
co

nomi I n tin t — M a xian V i w N

c s H i t i l
c s r e a r ro n
s or ca

E xplanation D ifli l t— —
P oph y T he Cla S t ugglcu r ec ss r e
— E ono mi I n t p ta t ion R j t d
c c P g 51 er re e ec e a e

vi i
v iii C O N TE N TS

IV

M A R X I A N T H EORY O F VA L U E
TH E
’
s —
Ri cardo La bo Co t T h o y Adapted Ma x s Ada pta
r- s e r r
’

—
tion I mpo tan e f the T heo y—F at l E x epti ons
—
r c o r a c

Wh e e T h o y Coll a p s T he Fa cto r of S ca ci ty
r e r se r

Th F to of S o ial U til i ty M in e and F a m

m
e ac r c r

Co ts M dj ood M a x A d m i i o n ’

B a n fiot
u r
c
s a s r s ss

U tility L ab o Co st T h o y D i d
r i r‘ r -
e r scr e

ited P a ge 6 9

T H E MAR X I A N L AW O F I NC RE AS I N G M I S E RY
Livin g Co ts D te mine Wa ges—S ocial i st I nte p etati o n
s e r r r

M a x T w i ts T h o y of M althu —P es i mi m and
r s e r s s s
—
O pti mism f Ma x Ea li e Co ndi ti o n s f W o ki n g
o r r r o r
— s —
Cl a s Cha n ges in the Co nd iti on of W o ke L abo s r rs r

Conditi o n in the U ni ted Stat —W I King s Fi nd

s es
’

—
a

—
.

i ng Admi i o n of So i ali t M a x i m Wi th M a x
s ss s c s s r s r
—
L eft O ut I n co n si stency of S ocia li sts
VI

T H E M A R X I A N T H E O RY O F SU R PL US VA L U E
—
A Co nc et E x ampl e Labo r nd Cap i tal Ma x C el
r e — a r
’
s e
— —
b t d Puzzl e Co mm e cia l Cap i tal D i t ibut i o n of
W alth—T h Sh a e f Labo —Co nd iti o ns in th
ra e r s r

—
e e r o r e
—

w
U ni t d K in gdo m T he E ff t of Sa vi ng T he Nati on
’

e ec s

I n om — T h Cap i ta l i sti c Cla — M x nd ss a

Pmfit—T o S i d es to the P i tu e—T h

c e e

B n fit f c r e e e s o

C a p i ta li sm P g 102 a e

VI I

S O C I ALI S T E C O N OMI CS O F MA CH I N E RY
r
’
s —
M a x V i w n M a hin y A Plau ibl Ca
e s o
— Cont a: c er s e se r
— c s
—
di tion M a hin y M ay D i pla L abo M a hin y c er s ce r c er
 C ON TE N TS ix
M ak es Sho t D ay— M a hin y N t a Bli ght
for r er c er o

M en N t D i pla d by W o
o m —
n D om ti an d P
s ce e es c ro

fessio n l Wo k
a r er sP g 1 27 a e

V II I

Ma rx ia n V i of C i — w
T H E S O C IALI S T T H EORY OF C RI S E S
F o i gn Comm e —S o iali st
e r ses

T h o y i F al — S l f Con t adi ti on—So iali t P op h

e r s se e -
re

r c
er c

c s
c

ec
y G oundl T
r h P n t C i i
essP ot tiv e r e se r s s r ec e

T end n i s e c e P g 1 44 a e

IX

T H E MAR X IA N T H EORY OF T H E
C O NC E N TRATIO N OF C AP ITAL
M arx An ti ipat d—A g i ultu —Whol al
c e nd R t il r c re es e a e a

T ad — T h F inan ial P ow —M an fa tu ing—D if

r e e c er u c r

fusi o n of O wn hi p P g 1 60
ers a e

X
T H E MAR X IA N P RO P H E C Y OF T H E
ELIMI N ATIO N OF T H E MI DD LE C LAS S
M iddl Cla — A g i ul tu
e — M anu fa tu
ss — P f r c re c re r o es

s ion and Skill d L abo —M iddl Cla D omin

s e r e ss

ant P age 1 7 3

XI
T H E MAR X IA N T H EORY OF T H E C LASS
S TRUGGLE
e e
—
H g l and D a win Th o y f th O igin f Cla es
r e r o e r o ss

r c —
Con t ad i to y Hi to i al D ata Sa t i fa tion in A l l
r s r c s c
— c e
—
So i ty M od n Condition M a x P oph y Un er s r
’
s r ec

ful fil l d T h T ipl Allian

— e e
—
in E ngland F t r f e ce u u re o

the Cla ss St uggl r e Page 1 8 1

x CON TE N TS

XII
T H E S O C IAL RE V OL U TIO N

H
w
M ethod of the R volution M a x s Con t adi tio n s—D r
w
o R volution Hav O
e
— e

inism and M a x — Biologi al and So ial E volution

r

d— M a x s P oph i s
s e
r

ccu rr e
’
r

r
’
c

r ec e
a

N ot F l fi l l d Capi t ali m E vol t iona y

— u e — P oph y o f s u r r ec

F inal Ov th ow—S t ngt h f C api t li m—R a on o

er r re o a s e s r

P a s i on —
s E moti onali t P g 193 s s a e

X II I
B OL SH E V I S M O R T H E D I C TATOR SH I P OF T H E
,

C OMMU N I S T PARTY
T h e Y llow and t
—
co s

19 17 —
e h

Bol h vi t S
R d
s

w—M a x th P oph t f A ll
S t T R vol tion E xp t d T h R volution f
o
—
—
e
e

Con t ol T h Co p d et at
s e s s
u
“
e

ecu r e
s
”

ec e
r

r
e

e
r

e
e

u
e o

’
o

—T h C nt al E x utiv Co mm i t t —T h P a a nt y
e e r ec e ee e e s r
—T h I nd t ial W o k
e
—E onomi B akdown
us r r er s c c re

Ind i vidual L ib ty Supp —

d Civilization in P il
er r esse er
— I ndu t ial R on t u tion— Capitali m Com ing Ba k
s r ec s r c s c

T h
-
e
—
T hi d I nt national Bol h vi m i R l
r er s e s s ev o u

ti n y M a x i m
o ar r sP g 20 8 a e

A PP E N D I X
T he N np t o a r i sa n L ea gu e

S l t d Li t
e ec e s of Book i n E ngli h
s s

Ind x
e
 The purpos e O f the fo llowing chapter s is to
p res ent a b ri ef exposition and c riticism of the
chief points of Ma rxian socialism also called ,
“ ”
scientific socialism That the fundam ental
.

theori es O f soci al ism are far from scientific has

Often been shown yet many int elligent p eople
,

a r e not awa r e Of the fact Ce rtainly in th ese

.
,

days Of discont ent wh en many panaceas a re O f

,

fered for social ills it should b e wo rth while to

,
-

examine th ei r clai ms b efor e th ey a re tri ed on the

patient and it is found by sad exp eri ence that
, , ,

the r emedy is wor se than the di s ease .

A s we consider the pl ace O f socialism in history

and the dev elopment Of socialistic thought fr om

P lato to L enin we see that four if not five

, , ,

r ath er clea r ly mar ked types have successively

appear ed .

The fir st socialists we re philosopher s like ,

P lato and S ir Thomas More who deploring the , ,

evils Of th ei r day had visions O f ideal states but

, ,

never tri ed to creat e a working model .

In the second stage which came with the in

,

du strial and political r evolution Of the eighteenth

century socialistic ideas took hold of ea rnest but
,

visionary men like R ob er t O wen in England and

,

F r ancois Fou ri er in Fr anc e who b eli eved that ,

they could actually const ruct and Ope r ate ideal

 w
.

mniuhitres lmi i
; a e re not convinced by re
‘

co ,

p ea t ed failu r e th at t hei rplans w er

, e unwo r kabl e .

O rigin O f M O dern S ocial ism — I n the middle

Of the ninet eenth century wh en it was evid ent ,

that the twin revolutions had failed to b ring p er

feet libe rty equality and fr aterni ty to the worl d
, ,

an d when modern science had well begu n its

“
gr eat care er Karl Mar x p r oclaimed the seien
,
”
tific discovery that a r evolution was latent in
the very constitution Of capitali stic society and ,

that because Of exploitation increasing mis ery

, , ,

an d the disa ffection Of the working class the day ,

Of socialism was at hand .

About the beginning Of the p resent centu ry ,

when skepticism had undermined the faith of

theoretical socialists and the r ank and file began,
“
to mutiny against the soft handed intellect -

”
na l s, the di rect actionists came to the for e im ,

patient r evol utionary evangelists calling O n the

, ,

worker s to arise and spar e not .

Finall y after the World W ar and the rev ol u

, ,

tions in R ussia and Ger many we find in thos e ,

count ries the administr ative socialists the social ,

ists in Offi c e who having assumed large r esponsi

, ,

bility and with the lives Of millions in thei r

,

keeping a re forced to comp romise with the O l d

,

or der and having dr iven capitalism out by the

, ,

fr ont d oor let it come b a ck by the c ellar window

,
.

S ocial ism was in the wor ld long before the

 IN TRODU C TI ON 3

time Of Ma rx and will be long afte r his theo

, ,
“ ”
r i es hav e be en discar ded S ci entific socialism
.
,

th en is but a p assing phase O f the ete rnal p ro test

,

against things as they are which fol lows human ,

society like a shadow and would like S atan in

, ,

the B ook O f J ob play a leading par t in the N ew

,

J e rusalem .

Such being the case it might seem futile to

,
“ ”
Offer c riticism of scientific socialism but for ,

the fact that socialism in its sci entific garb goe s

, ,

about in borr ow ed p restige authority and for ce ,

which do not belong to mer e visions utopian ,

sch emes and bitter r ebell ion against the inev it

,

able evils O f every social system If so cialism .

has a right to the cloak O f science it may wear it , ,

but if not it must appea r in its p rO p er shape and

,

b e j udged acco r ding to its r eal ch aract er and

intentions
—
.

S ocial ism I s a C a rica tu re C er ta inl y social ,

ism as a syst em Of thought is a rema rkabl e

, ,

structure the par ts Of which s eem at fir st sight

,

to fit togeth er so w ell as to p r ove that it mu st be

a real picture Of capitalistic soci ety and a true ,

p r oph ecy O f coming change And yet a closer .

,

examination shows that fallacy an d half t ruth -

pervades every par t and that the enti r e system ,

with all its plausibility and appar ent consistency ,

is a mere car icature O f the industr ial world as it

r eally is .
4 IN T R ODU C TI ON

Much Of this critical examination has be en

made by socialists th emselves the mor e scholar ly
,
“
intellectuals who a r e Often called r evisionists
, ,

because they wish to make the theori es Of Marx

squar e with facts T O such an extent has this
.

“ ”
higher criticism und ermin ed th e faith that the ,

most fundamental theories stand disp r oved or

discredited in the minds of many socialists .

These mor e enlightened leader s no longer

believe as once th ey did and if th ey still p r oclaim
,

the or thodox c reed as some do it is b ecaus e the

, ,

Old wor ds come r eadily to the tongue the old gos ,

pel is p r eachable and the ol d p r omises still have

,

power t o sti r the soul O f cour se mo st O f the

.
,

agitation is don e by the less intellectual who still ,

b elieve A s to the r ank and file they a re dis

.
,

pos ed to believe and feel and do without l ooking ,

too clos ely into the r ational basis Of th eir faith .

C ha ra cter of the M O nement — But if the ra .

tional basis is not the r e it is sur ely well for all

,

conce rned to known wher e th ey stand If soci a l .

ism as a system O f thought is unsci entific and u n

sound , then it is still whe r e it was in the days O f
P lato Mor e O wen Fourier and the r est A nd
, , , , .

if the economic analysis a nd doct rin es are fals e ,

upon what foundation O f sci enc e or r eason does

the p r op osed new system Of social r econst ruction
r est ?

S ocialism can still be and is a d enunci ation of

, ,
 IN TRODU C TIO N 5

capitalism accor ding to whi ch most of the ills of

,

life are attributable to p rivate p roperty .

It is still a highly imaginary scheme of social

organiz ation which socialists beli eve woul d be a
, , ,

panacea for most if not all the ills that flesh is

, ,

heir to .

It is still a murmu r of discontent among the

poor a movement towar d a social revolution and
, ,

a determination to carry ou t on a national or ,

international scale the plans which they ha ve ,

se en in thei r d reams .

It is still a p r omise of a Gol den A ge that ,

allures and blinds and disappoints like the will ,

O the wisp or the pot of gold at the foot of the

- -
,

r ainbow .

T e A p p eal of S ocial ism

h — All this is left an d .
,

socialism still appeals and will appeal to people , ,

—
of a certain tempe r ament the sanguine emo ,

tiona l uncr itica l visionary c redulous impatient

, , , , ,

—
intempe r ate explosive but sur ely not to sane
, ,

r ational w ell balanced men of common s ense

,
-
,

who are the onl y safe pilots in stormy and nu

chafted s eas
'
.

It is not a us eless task therefore to expose the , ,

“ ”
unscientific p ret ensions of sci entific socialism ,

unless it be true that man is not a r ational

animal but swayed to such an ext ent by emotion
,

and passion that he will be r eady to b reak up the

p res ent imp er fect sch eme of things indu strial on ,
6 IN TRO DU C TIO N

the chance Of being able to fashion ou t of the

wr eck something near er to the hear t s desi re ’
.

Yet the experience of Russia makes one b e

lieve such childish folly possible and ther e a re ,

people in eve ry country who wish to follow that

example Also there a r e those who are mov ing
.
,

in that dir ection though they do not see the end

,

of the r oad . P r ofessor Fr anklin H Giddings .

,

of Columbia Univer sity r ecently wr ote these sig

,
“
nifi cant wo r ds : The whole world at p resent is
intell ectuall y muddled and mo rally bed eviled It .

is trying to r econst ruct society up on a hyp otheti

ca l equality O f all mankind If it succeeds it will .
,

destr oy histo ric achievement fr om the beginning ,

”
and will send mankind to per dition .

S ocialism may not stand for absolute equali ty ,

bu t the r e can be no doubt that its t rend is

s tr ongly in that dir ection It lays its elf open to
.

ch arge of P lato who said in substanc e that

, , ,

nothing is mor e unequal than the equal t reat

ment of unequals The exploitation of the many
.

by the few is bad no doubt ; but the exploitation

,

o f the few by the man y the exceptional men by,

the sluggish hor de the to r ch bea re rs of civiliza

,
-

tion by those who walk in darkness means not ,

only the abolition of p rivate p roper ty initiative ,

and ente rp ris e but the dest ruction of ou r p r esent

,

civilization—and what will follow that no man ,

knows .
8 T H E CREED O F S O C I AL I S M

good things of life belong to a few and , the

c mbs of t e table to all the r est
r u h ?

Wh n A da m d l v d and E
W ho
pa n
e

was th n
e
e

the
e

g ntl man
e e
ve s

? ” 1

O ut of
a strong desi r e for better things has
come the b eli ef that better things are p ossibl e .

Man i s a bor n dr eamer He puts a halo about .

the past and s ees the futu r e in a golden mist .

The poor O f this world always r ich in faith have , ,

conceived the thought of a per fect wor ld and the ,

des ir e O f thei r hear t they beli eve they will one

day attain This desi r e and this faith is the spir it
.

of socialism .

T yp es O f S ocia lists — Ther e are at least three .

kinds of socialists : the instinctiv egé the utop i an ’

,

and the sel entificb The sociali st by instinc t ‘

merely not knowing that he is a socialist under

, ,

estimating the str ength O f the p r op er ti ed class es ,

appeals to the c rud e and p rimitive ru e of force ,

commits acts of viol enc e and t err or and in him ,

“
is ful filled the significant p rophecy : They that
”
take the swor d shall perish by the swor d The .

p assionate shor t sighted rebel di es befor e his

,
-

time and his misgui ded follower s sooner or later

,

r ealize that they have o nl y discr edited the cause

they hope d to ser ve

"
,
.

The utopian socialist with his P lato More or , , ,

t ym at t i b t d
s t o th m d p
r i t J o h
u e n B l l b fo th
e
“
a ; r es
”
a e re e
P a nt R b l l ion f 1 38 1
, ,
’
e sa s e e o .
 T H E CREED O F SO C IALI S M 9

w
B ellamy comes to comfo rt the distr ess ed with a
,

glowing pictu r e of a gold en age a h eaven on ,

earth a N e J erusalem of peac e and pr osperity

, ,

w
whe re the hungry shall eat the thi r sty shall ,

dr ink and all tear s shall be wip ed away How

, .

all ur ing the sch eme of p erfect harmony ho ,

j ust the method Of distr ibution how attr active ,

to the i magination how satisfying to the soul

, ,

and yet how visionary intangible imp ossible a

,
— ,
~

city o f dr eams a mi rage O f the des ert")

,
“ ”
The sci entific socialist is the only socialist
worthy of the name The philosophy o f H egel
.
,

4 the economics of Rica rdo and the biology of

,

7 D arwin combine in him to p r oduce a system of

social th eory the most remarkable that the worl d
has s een .

T he F ou nder of M odern S ocialism — Hein .

r ich Kar l Ma rx ( 1 8 1 8 by bi r th a J ew is ,

the Mos es of socialism its lead er lawgiver an d

, , ,
“ ”
p r ophet His gr eat book Capital is often
.
, ,
“
called the Bibl e of the working clas s In this .

and oth er wo rks he expounded the p r inciples of

scientific socialism which ar e thought to give
,

su ch knowl edge of p ast history and such insight

into p r es ent economic t end enci es as to j ustify
the ass ertion that the revolution is at hand and ,
“ ”
the mill ennium about to b e ush ered in .

“
The sci entific socialist O f the or thodox type
is very su re of his gr ound T he p res ent has no
.
1
10 T H E CREED OF S O C I AL I S M

mystery for him ; the future is like an op en book .

T o him people a re divided into th r ee classes

knaves fools and socialists If you do not know
, , .

Mar x you a re a fool If you know and do not .

,

believe you are a knave or at best a par asite

, , , , .

I f you know an d believe you a re a socialist one ,

of the elect .

Y et nobody shoul d be offende d when such

epithets a re used in the course of a scientific d is
cu ssion for it is quite p r ope r to call men par a
,

sites exploit er s r obbe r s and the like so long as

, , , ,

it i s done in a scientific sp irit which as Mar x , ,

“
puts it deals with individuals only in so far as
,

they a re p er sonifi cations of economic categories ,

embodiments of p articular class interests and

” 1
class r elations .

H igher C riticism — S ocialism has always had

.

its enemies among outsiders but of late year s a ,

“ ”
sor t of higher c riticism has sp rung up within
the fold and many p r ofessed s ocialists have b e
,

gun to doubt d oct rines fo rmer ly consider ed fun

da mental F or such opi ni ons some have be en
.

w
cast out of the synagogue while other s suspect , ,

ed O f he resy have lost influence with thei r more

,

o rthodox comrades ho d eman d r igid adherence ,

“ ”
to old line Marxism
-
B etter a declar ed en emy
. ,

“ ”
th ey say than a half heart ed fri end
,
-
.

The enlightened socialist or r evisionist nu , ,

Ka l Ma x C p i t l V l I A tho P fa
1 r r , a a , o .
, u
’
r s re ce
.
 T H E CREED OF S OC IALI S M

able to deny the validity of the ne er cr iticism

is careful to s epar ate the wheat fr om the chaff of
Marxian doct rin e If Mar x be shown to have .
w 11

made a mistake he will say that the point is not

,

essential and will withdr aw to the main line of

,

the Marxian system which he thinks can never , , ,

b e pie r c ed But if it w ere p r oved beyond a

.

doubt that the whole teaching of Marx is fal

lacions both in p remises and conclusion the con
, ,

firmed socialist would if n ec essary abandon his , ,

great teacher holding that socialism greater

, ,

than Marx or any; other man can stand on its ,

own foundations .

Finally if it could by any possibility b e shown

,

th a t socialism a s a system of thought is utter ly

,

false the true socialist would retreat to his last

,

stronghold and say that socialism at bottom is , ,

not a system of thought but a p rocess of social ,

evolution a law of the indust rial world irresis

,

tib l y moving on towa r d its final d estiny .

T O say this is to substitute ass ertion for p r oof ,

feeling for r eason faith for knowledge mer e , ,

g u e ssing fo r sci entific d emonst r ation A nd yet .

,

dogmatism such as this app eals to p eople of a

c er tain typ e who wh en th ey have clos ed their
, ,

minds to doubt a re more vehement than ever in

,

p r oclaiming thei r opinions And str ange to say .

, ,

their power ful sugges tions carry conviction to

12 T H E C REED OF S O C I AL I S M

many h eare r s with littl e suppo r t I n logic or

,

r eason .

It may be that f eeling lies deep er than r eason ,

that faith is mor e r eliable than sci ence that we ,

should beli eve in or de r that we may know ; but

the Mar xian socialist doe s not consciously enter

w
tain such views as these and will not uphold them
except as a last r esort .

If socialism I S a sci ence ho is it that social

,

ists display so little Of that op enn ess of mind ,

that love for t ruth that indi ffer ence to cont r a

,

diction that sublim e patience so char acter istic of

,

the t r ue sci entific spi rit ?

S ocial ism N ot a S cience — I n fact socialism is ,

not a science at all but a sor t of faith or r eligion

, ,
.

S cience for the social ist is a me r e tool a means to ,

an end to be discar d ed aft er it has s erved its p u r

,
‘

pose F or him science 1 s but the handmaid to

.

r eligion .

In these days wh en we have a psychology

,

without a soul let it not b e thought strange that

,

we have a religion without a god L ike most .

religions S oc ialism has its p r ophet and its book

,
.

w
Like a ll religions it has its cr eed whi ch the
, ,

or thodox hold with the utmost dogmatism and

intoler ance The t m passions of love and hate
.

supply the motive power and a fi rm conviction ,

that the soci a l r evolution is at hand is a sour c e o f

 T H E CREED OF SO C I ALI S M 13

great enthusiasm in the p ropaganda for the con

ver sion O f the wor ld .

S ocialists are op timistic to the last degr ee .

Unbounded is th ei r faith in man ; b rilliant the

d estiny they p redict for him T he socialist is .

essentially a p r oph et B elieving hims el f able to

.

r ead the signs o f the times he does not hesitate ,

to say that he can fo res ee in outline at least the

, , ,

changes that will take plac e in time to come His .

p r oph ecy as he says is not utopian as of those

, , ,

who me rely dr eam and hope for a better world ;

but sci entific like the for ecasts of the weath er
,

bur eau or the p redictions of a chemist who

,

knows what is coming out of a combination b e

.

caus e he knows what has b een put into it S cien .

tifi c p r oph ecy that is socialism

, .

P a rty Unitg D esired — The Int ernational

Socialist Congress which met in Amster dam in
,

August 1 9 0 4 adopted the following r esolution :

, ,

“
The C ongress declares that in ord er that the
wor king class may develop its full strength in
-

the stru ggl e against capitalism it is necessary ,

that there should be but one socialist par ty in

each count ry as against the pa rti es O f the capita l

ists j ust as th ere is but one p r ol etar iat in each

,

count ry F or th ese reasons it is the imp erative

.

duty of all comr a d es and all sociali st o rgani za

tions to strive to the utmost of thei r power to
b ring about this unity of the pa rty on the p r inci ,
1 4; T H E CREED OF S O C I AL I S M

ples established b y the international congresse s ,

that unity which is necessary in the inte rest of the

p r ol etariat to which they are r esponsible for the
”
disastr ous divisions in thei r r anks .

In thes e days of independent thought it is

common to speak slightingly of creeds but when ,

men u nite for r eligious mor al political or eco

, , ,

nomic ends they find that success cannot be

,

attained without a ce r tain union in thought feel ,

ing and purpose In the wor ds of the p rophet

, .
,
“ ”
C a n two walk togethe r except th ey be agreed ?

In early times when philosophe r s like P lato

, ,

More and C ampanella saw visions O f ideal

,

states the question of unifor mity in beli ef was of

,

no consequence to themselves nor to the world at

large .

w
When mor e zealous socialists like O wen and ,

Fourie r b egan to est ablish thei r experim ental

,

communities — “
duodecimo editions of the N e
”
,
—
J erusalem as Mar x called th em unity in faith
was seen to be a matter of vital importance .

A ssociations of philosopher s and literar y p eopl e ,

like B r ook Farm C ommunity near B oston ,

speedily failed ; while communities of simp l e

minded b eliever s with a common r eligious c reed
, ,

like the Shake r s and the Amana Community ,

have continued to exist until the p r esent d ay .

T he C ommu nist M anifesto — But when in . ,

the r evolutionary agitation of 1 8 4 8 socialists of 1 ,

16 T H E C REED OF SO C IAL I S M

w
much hindered by the di sastr ous expe riment in
Russia as w ell as the behavior of many socialists
,

dur ing the ar .

r h
O t odo x D —
octrines of S oci a l ism " O rthodo x .

s ocialists thr oughout the world with all the ,

variations due to nationality local envi r onment , ,

temper ament or othe r causes hold mor e or l ess

, ,

strongly the following doctr ines which may be ,

br iefly exp r essed in a se ries of p ropositions

In a given pe riod of the wor ld s history ’

the m od es of p r oduction and exchange or the ,

ways by which people get thei r l iving d et ermine ,

their whole political social intellectual legal

, , , ,

mor al and even religious life Also when the

, .
,

economic foundations change corr esponding ,

changes are thereby b r ought about in the social

super structur e This is the theo ry of economic
.
’

determinism oth erwise known as the material

,

istic or economic inte rp r etation of history .

The exchange value Of comm odities de

pends upon the amount O f social ly nec essary
labor time r equired to p r oduce them This is
-
.

the labor cost theory Of value

-
.

A l though the working class the p r ole ,

tariat create all wealth th ei r wages tend to equal

, ,

the bar e cost of living A s the rich grow rich er

.

the p o or gr ow poorer and ever sink deeper in ,

the slough of paup erism This is the i r on law of .

wages or the theory of increa sing misery .

 TH E CREED OF S O C IALI S M 171

capitalists the bourgeoisi e take the

T he , ,

greater par t of the values creat ed by the p role

t ariat in the form of rent int er est and p r ofits
, , .

This is surplus value Obtained by exploitation or

,

r obbe ry .

The introduction o f labor saving ma -

chine ry and imp r ov ed methods Of p r oduction

c reates a vast r eser ve ar my of the unemployed ,

and impoverishes the whole working class whil e -

,

the capitalists accumulate a mass of commoditi es

which th ey can neith er u se nor sell The r esult .

is chr onic ove r p roduction and under consu mp

- -

tion with periodical c rises which threaten the

, ,

very existence of the capitalistic system This .

is the theory of cris es taught by R odb ertu s Mar x , ,

an d most orthodox socialists .

The unceasing imp r ovement in m achin

ery and m ethods of p r oduction caus e s indust ry to

w
be conducted on a lar ger and lar ge r scale and ,

wealth to b e concent r at ed in the hands of a few

magnates This is the l a of the concent ration
.

of capital .

( 7 A s this p r ocess goe s on the small manu ,

factu rer s shopkeep er s c r aftsmen and peasants

, , , ,

sink gr adually into the p r ol etariat being gr ound ,

to pieces b etween the upp er and the n eth er mill

stone This is the app r oaching elimination of
.

the mid dl e class .

S oon th ere will b e onl y two classes left

18 T H E CREED OF S O C I AL I S M

capitalists and labor er s bou rgeoisie and p rol e

,

tariat the r obbe r s and the r obb ed But the p r o

, .

l etaria t the mor e numer ous class b ecoming con

, ,

scious of thei r str ength will seize the political

,

power and inaugurate the social revolution .

When the p r oletariat have don e this

they will gr adually or sp eedily abolish capitalism
by organizing industry on the basis O f a common
owne r ship an d management of the means of pr o
du ction with an equitable distr ibution O f the p ro
du ct so as to abolish p overty and all the other
,

evils of capitalism .

A fte r the advent of socialism human ,

character will adapt it self to the ideal envi r on

ment ; all men or nearly all will b e industrious
, ,

and vi rtuous ; and an er a of p eace p r ospe rity and , ,

happin ess wil l p r evail until the end of time .

The social r evolution is coming and

nothing can p r event it .

T he P ar tial D issenters — “
The higher critics.

w
of socialism among whom a re B ernst ein of G er
many V ander velde of Belgium Tugan B ar a
, ,
-

no sky of R ussia Ha r die and M a cD onal d of

,

England Spargo and H il l qu it of the United

,

—
States b y no means accept all of the or thodox
c reed but r ej ect c ertain doctrin es and modify
,

othe r s until the re is littl e di ffer ence between

,

them and the unb eli eving reform er or the u ncon

 T H E CREED O F SO C IALI S M 19

verted p r ofessor of political economy And yet .

,

in th ei r public utt er ances th ey Often sp eak and

,

write like t rue b eliever s as though the r ank and

,

file o f the socialist army should not know how

little Of the Old faith remains intact Much of .

the p ropaganda li ter atur e contains the O l d c rude

doct rines exp ress ed in the O l d familia r way mis ,
“
leading but eff ectual in bringing about clas s
” “ ”
consciousn ess and solida rity among the work
ing class T ruth is sac rificed to political tactics
.

and the end is us ed to j ustify the means and —

that by socialists who know better Thus the .

Roman augur s us ed to wink at one anoth er wh en

they met but turn ed a sob er face to the su p er sti
,

tious common p eople .

F or exampl e th ese enlightened socialists know

,

that economic forces are not the only factors in

social evolution and that the class struggle is
,

not the only way to b ett er things .

Th ey admit that the wage earner s are not the

-

sole creato r s of wealth and p r oductive id eas and ,

that the bourgeoisie as a class r ender great ser

, ,

vice to society in many ways .

They confess that the labor cost th eory of -

“
value is unsound and that much of sur plus
,

”
value is but a fai r retur n to capital and enter
p ris e
.

They find no law of increasing misery in capi

20 T H E CREED O E S O C I AL I S M

tal istic countries as the condition of the working

,

class is steadily if slowly imp r oving

, , .

They suspect the accur acy of the orthodo x

th eor y Of cr ises and no longer expect the capi
,

tal istic system to b r eak down th r ough ov er p ro

duction .

They see that the concentration of p r oduction

an d wealth has its limits and that the middle ,

class I S not disapp earing but incr easing in , .

numb er s and W ealth .

They are inclined to think that socialists may

safely work with unconver ted r eformer s for the
half loaf Of partial betterment in social con
-

ditions .

They Often teach that the socia l r evolution

may come not as a sudden cataclysm but r ath er
, ,

by gr adual p r ocess of industrial evolution .

Finally aghast at the terr ible doings in

,

w
Russia they r epudiate the dictator ship of the
,

p r ol etariat and even disown the r evolution thei r

, ,

o n child as an untimely bi r th and b ecause it

, ,

has contrary to expectation both teeth and

, ,

claws .

But these intellectuals with all their doubts , ,

still wish to r emain within the fold still hold to ,

what th ey consid er as the essentials of socialism ,

and with possibly a little mental res er vation

, ,
“
could honestly r epeat a formula such as this : I
b elieve in economic evolut ion and the clas s
 T H E CREED O F S O C IALI S M 21

struggl e I r ecognize exploitation as the essen

.

tial evil of capitalism I believe in the p rol e

.

t ariat I look for the social r evolution the re

.
,

gen er ation O f man and the peace an d p rospe rity

,

”
of democ ratic coll ectivism .
 TH E S E C T S O F S O C I AL I S M

A lthough socialists Of every belief have mu ch

in comm on they are by no means agreed on all
,

points of theory and p r actic e and the re is serious

,

contention and division among th em The body

of doctrine which they p r ofess has four m
.

ain
par ts or aspects : fi r st it is a criticism O f the
,

p r esent industr ial o rder ; second a philosophy or,

th eory of social evolution ; third a plan or ideal ,

of a new social o r de r ; and fou r th a p r opaganda ,

o r campaign for the dest r uction of capitalism

and the s etting up O f the social comm onwealth .

P ractically all socialists a re agreed in their

hatred of capitalism the evils of which th ey de
,

light to expose as though it w er e the sum of all

,

iniquity and the cause of all the tr oubl es that

afflict the world To be su r e Marx r egar ded
.
,

capitalism as a necessar y stage in social evolution ,

even as some th eologians r egar d S atan as a

n ecessary evil and par t of the divin e or de r when
s een fr om the long time point of view
-
.

S ocialism as a th eo ry of social evolution is

, ,

the mate rialistic or economic inte rp retation of

22
 T H E S E C TS O F S O C I ALI S M

fr eely admits that socialism is mor e utopian than

sci entific holding that its utopianism is the chief
,

1
sour ce of its st rength .

P rop aga nda a nd T actics —Finall y on the .

,

— —
four th p oint p r opaganda and tactics ther e is
much di ff er ence of opinion as the re must be ,

among men of var ious types and t emp er aments .

S ome like the utopians think that the b eauty

, ,

w
and attr activeness of th ei r ideal plans will con
vert the wor ld O th er s like the Fab ians expect
.
, ,

the ne age to come little by littl e and a r e wil l ,

ing to wait for the mills of the gods to gr ind ou t

thei r grist Still oth er s like the evolutionary
.
,

M ar x ists b elieve that the r evolution will come

,

b y the p r oletar iat s p e acefully voting th ems elves

’

to power ; while the mor e imp ati ent d eman d

direct action an d the viol ent minde d favor a
,
-

b l oody insurrection .

The sects O f socialism then though having a , ,

common c reed di ffe r wid ely in th ei r id eals of the

,

futur e and in th ei r sel ection o f ways and means ,

and ther e is no p r ospect of unity in p l an and

r po se
p u .

w
Utopian S oeia l ism Utopian socialism as the. ,

name imp lies is something fanciful and varies

, ,

ith the imagination or cap rice of the p oet ,

philosophe r or p r oph et who dr eams about a

b etter wo rld
w
Utopia or the land of nowhe re
.
, ,

I T g n B n ky M od m S o i l i m P fa
u a -
ara o s , e c a s ,
re ce.
 T H E S E C TS or S O C I AL I S M 25

was an imaginary kingdom described by S ir

Thomas Mor e a gr eat English scholar and
,

statesman of the sixteenth century More got .

his inspi r ation from the Greek philo soph er

P lato whose Republic was the fir st of the
,
“ ”

utopias It is wor th noting that P lato realizing

.
,

w
the impossibili ty Of his ideal wr ote another book , ,
“
The L aws in which he described a se cond b est
”
,
-

state not ve ry di ffe rent fr om his o n Athens

, ,

which he thought might be successful with

human beings as they we re I t might be well if .

socialists of the p res ent day we re as wise as

P lato .

“
S cientific socialists a re inclined to r egar d all
the p r edecessor s of Marx as utopians S aint .

S imon therefore in some r espects a greater man

, ,

than Marx is clas sed as utopian although he

, ,

anticipated the Mar xian theory of social ev o

l ution and was one Of the founder s of stat e so cial
ism Fou ri er ano ther F r ench socialist is put in
.
, ,

the same class although he had many b rilliant

,

ideas and was the fath er of internationalism in

w
that he suggested a feder ation of the world .

R ober t O wen who establish ed a model factory

,

w
at N e L anark in Scotland and lat er spent his
, ,

time and money in p r omoting exp erim ental com

mu nities in N e Harmony Indiana and else , ,

wh ere is cal l ed utopian although he was one of

, ,

the founde rs of the common school di d much ,

26 T H E S E C T S OF S O C IAL I S M

for factor y legislation an d was a pionee r in

,

effici ent management .

Many othe r noted s ocialists are c l assed as

“ ”
utopian because without a scientific basis for
,

thei r theories they thought that they coul d in

,

vent a wor kabl e scheme of social or ganization ,

and put it into op er ation without waiting until

the time was ripe and the people r eady for the
new order of things A ll o f these labor atory
.

expe riments have failed as might have been ex ,

w
p ec te d and, Ma r x ian socialists have t r ouble in
explaining why they failed without sugg esting

the p r obable failu r e o f th ei r o n b r and of social

ism when tr ied on a national or inte rnational
,

scale .

It is easy to call these men utopians and thus ,

condemn them with a name but if all thei r con ,

tributions to socialism wer e taken away ther e ,

would be nothing left but a few discr edited

“
scientific theories O n the other hand wh en
.
,

“ ”
the sci entific part of Marxism is refuted or
explained awa y it is the utopian r esidue that
,

—
constitutes the chief st r ength or weakness of —
modern socialism .

C ris ian S ocia l ism

h t — C h ristian socialism is
not socialism at all fr om the Marxian p oint of
,

Vi ew for the Ch ristian doe s not beli eve in the

,

materialistic int erp retation o f history nor in the ,

class st ruggle nor in the s ocial r evolution nor

, ,
 T H E S E C TS OF S OC IALI S M ‘

27

does he exalt the p roletar ian because he is poor ,

nor condemn the rich beca u se he is r ich The .

C h ristian C hur ch in so far as it is like its

,

F ounde r is the friend O f the poor but p reache s

, ,

the gospel to rich and poor alike laying chief ,

stress on char acte r though seeing also the need

,

of imp r oved cond itions of life .

Christian socialism goe s back to the ea rly

w
C hur ch when the di sciples had all things in
,
”
common but the fir st great wr it er on the sub
,

j cet was S aint Thomas of Aquinas ho is a ,

high author ity to day especially in the R oman

-
,

C atholic C hur ch He taught that in an ideal

.

state p rivate p r operty woul d b e necessary ,

first because of the inte r est which the o wner

,

ta kes in the management of his p rope rty ; s econd ,

because it t ends towar d a be tte r organization of

p r oduction ; thi rd because p rivate industry is
,

ca rri ed on with less of that wr angling and con

w
fl ict which r esults when p r op erty is held in
common .O n the oth er hand no man should re ,

gar d the fruits O f industr y as wholly his o n but ,

should share with his neighbor in the spi rit of

true b r otherhood and fri endlin ess A ccording .

to S aint Thomas all p r op erty belongs to God

, ,

and should be h eld as a t rust for the glory of G od

and the good of man .

Modern Ch ristian socialists have no t gone fa r

b eyond the teachings of S aint Thomas except in ,
28 T H E S E C TS OF S O C IALI S M

thei r application to p resent conditions They .

usually favor r easonable labor legislation living ,

wages and harmony between employer and em

,

p l oyee based on mutual good will and fai r play .

In other words they are social reformer s r ather

,

than socialists placing the emphasis up on char

,

acte r r ather than material envir onm ent though ,

r ecognizing the impo rtance of both .

The followe r s of Marx do not conceal thei r

contempt for C h r istian socialism In fact they .
,

are usually against the C hur ch and many if not , ,

most are also anti Christian

, In the C om -
.

“
mu nist Ma ni festo Mar x said : N othing is easier
than to give Ch ristian asceticism a socialist tinge .

C h ristian socialism is but the holy wate r with

which the p ri est consecr ates the hear t bur nings -

” 1
o f the a r istoc r at .

The great German socialist August Bebel is , ,

“
even mo r e outspoken thus : We aim in the do ,

main of po litics at r epublicanism ; in the domain

o f economics a t socialism ; and in the domain of
” 2
what is to day called religion at atheism
-
.

The well known English socialist B elfort

-
,

B ax d esignated the religion of so cialism as

,
“ ”
atheistic humani sm ; and another great Eng
“
lish socialist H M Hyndman said : Ch risti
, . .
,

”
a nity is ana r chism not socialism ; and again ,

1 M nif t o f th C o mm ni t Pa ty b y K a l Ma x nd F d
a es o e u s r r r a re

i k Eng l p 4 5 ( E d K
er c e s, C er r o
,

Towl nd R y S o i l i m I t P om i nd F i l p 73
. . .

2 er a a c a s s r se a a u r e, . .
, ,
 T H E S E C TS OF S O C I AL I S M 29

S ocialism is the only r eligion l eft ; C hristianity

” 1
is pr actically d ead "
T he qu estion is well s u mmed up by P r ofessor
Robert Flint thus : What is called C hristian
,

socialism will always be found either u n Chris -

tian in so far as it is socialistic or nu socialistic ,

-

” 2
in so far as it is truly and fully C h ristian .

F a bia n S oci al ism —Fabian socialism is an .

English vari ety deriving its inspir ation fr om

,

Marxism but mor e evolutionary than r evolution

,

a ry in chara ct er T he Fabian S oci ety was

.

found ed in the year 1 8 8 4 by a numbe r of lit

c r ary p eople and has had among its memb er s
,

some notable men and women including M r and , .

M rs Sidney Webb G B er nard Shaw F r ank

.
, .
,

P odmore Annie B esant and H G Wells some

,
— . .

o f whom have since wande red r athe r fa r fr om

w
the fold The name chos en alluded to the cele
.

b rated R oman gener al Fabius Maximus called , ,

“ ”
the D elay er who in the ar with Hannibal
, , ,

chos e to r et r eat and avoid battle in the hop e o f

wearing down the enemy until he could strike

and st rike ha r d .

The Fabians questioning some of the Marx

,

ian th eories and doubting the wisdom of Ma r x

,

ian tactics believe that socialism will come

,

th rough comp r omise as well as struggl e even a s ,

1 Tow1 nd R y S ia li m I t P omi
er a a oc s s r se a nd i
F a l u r e, p 2 18
Rob t Fl in t S o i l i m p 44 1
, , . .

2 er c a s
, , . .
30 T H E S E C T S OF S OC I A L I S M

the B ritish constitution has gr own little by littl e , ,

to the model of democr atic gove rnment They .

wish to work th rough the r egular political p ar

ties Obtaining what concession they can and
, ,

sp r eading socialist doctrines by peaceful pene

”
tr ation .

The Fabians hope to bring about socialism by

the gradual extension of municipal and national
activity until all of the land an d most of the
,
’
nation s capital shall be own ed and managed by
the sta te th r ough highly t rain ed an d competent
civil servants Fabianism th erefor e is sta te
.
, ,

socialism as conceived by a gr oup Of English

,
“ ”
intell ectuals who b elieve that sociali sm will
come gr adually and peacefully and that they or , ,

their kind will be abl e befor e and after the revo

, ,

l u tion to keep the unleashe d p r oletariat we ll in

,

han d .

S ta te S ocial ism —State socialism is of Pru s

sian origin although like Ma rx himself it has
, , ,

foun d a home in England A ccor ding to this .

way of thinking society is to be so organized that

all or nearly all business will be carried on by the
—
stat e that is to sa y by the local state or na , , ,

tional gove rnment as the case ma y be ,

.

Most socialists d eny that they favor state

socialism b u t that is because they think of the
,

stat e as an undemocratic exploiting minority ,

the capitalist state Wh en ther efore they fin d a

.
, ,
32 T H E S EC T s OF S O C IAL I S M
stan d convicte d of wishing to take a leap in the
dark .

State socialists at leas t have a r ath er definite

, ,

—
idea in mind the co llective owner ship and op
c r ation of all the means of p r oduction under the
dir ection of public authority local state or na , , ,

tional accor ding to the natu re of the industr y and

,

othe r ci r cumstances N atur ally the local gov

.
,

ernment bodies woul d take ove r local indus tr ies ,

a nd the nationa l autho rities would manage those

of national size and scope as they do now to ,

some extent State socialism involves merely

.

the e x tension Of p r esent gove r nmenta l activities

until p r actically all business shall be car r ied on
b y public authority that i s to say by the state
, , .

Then most worker s woul d be civil ser vants

attached to the local state or national govern , ,

ments Also inasmuch as bu siness activities are

.
,

closely related and tied togethe r ther e would ,

necessarily be a strong and highly c entr aliz ed

national government to which the local au thori
—
ties would be subor dinate otherwise th er e would
be conflict di sunion and anarchy F or the same
, , .

reason the centra l government must have the

,

power to tax to draft men for the army and

,

navy an d to draft worker s for the industrial

,

As to the way of e lecting the Officials of the so

cial ist state the re is much di fference of opinion ;

,
 T H E S EC T s OF S O C IALI S M 33

but as,
—
H ill qu it says it
is usually h eld that th ey
will not be elect ed by gen er al p opular vote but ,

will be chos en by the m ember s of each t r ade or

calling Howeve r that may b e the very idea of
.
1
,

state socialism car ri es with it the thought O f a

vast bur eaucr acy Of highe r and lower civil ser
vants with d ep artments divisions and su b di
, ,

visions chi efs and subor dinate offic er s and a

, ,

great multitud e of the r ank and file whose plac e

and wo rk woul d be assigned to them by authority
over which they woul d hav e little or no contr ol .

It is har d to imagine and unsafe to p r edict in

such matt er s but the more one thinks of state
,

socialism the l ess att r active it s eems until its ,

d emocr atic featu res fad e away and it takes the ,

app earance of incomp etent and insu ff erable tyr

anny Many socialists s eeing this a r e alar med
.
, ,

and disconcerted and fr equ ently turn to the ,

Opposite ext reme of syndicalism and anar chism .

S yndica lism Syn di cali sm or revolutionar y

~
.
-
,

unionism a r ose in Fr ance as a r eaction against

,

the P russian conc eption of state socialism and

the political m ethods conn ected th erewith It .

got its nam e from the syndicat es or labor unions , ,

e sp eciall y thos e composing the G ene r al F ed er a

tion O f L abor the C G “

, formed in 1 8 95
. . .

It d erived its inspi r ation fr om the revolutionary

t raditi ons of F r anc e the w ri tings O f Fr ench ,

l M i H il l q it S o ia l i m i n T h o y nd P
or r s u ,
c s t i p 142 e r a r ac ce, . .
34 T H E S E C TS OF S O C I AL I S M

socialists and the activiti es of the tra de unions

, .

T r ad e unionists in Fr ance as in oth er coun ,

tr ies constitute a minor ity of the working class

, ,

and those who favored socialism natur ally de

sp a ir ed o f obtaining it by p o litical methods .

“
A l so they r esented the leade r ship Of the intel
,

”
l ectu a l s who like Miller and fr equently lost
, , ,

thei r r evolutionar y faith and fer vor an d w ent ,

over to the bourgeois parties Th en too th ey .

, ,

distrust ed the int ell ectuals as m er e theorists

and mil d mannered gentl emanl y s ocialists who
-
,

shrunk fr om violence and opposed r evolution by

insurr ection .

P oli tical methods were too slow an d compli

ca ted for the r evolutiona ry unionists o f Fr anc e ,

who p r eferring to play thei r own game insisted

, ,
“
that mor e could b e accomplish ed by di rect
action ”
— sabotage the boycott the union label
, , ,

—
the gener al strike which if r epeat edly p r actised ,

by the united working class would soo n b ring the ,

capita li sts to th eir knees .

S a botage — S abotage is soldier ing going easy , ,

doing bad work spoiling mater ials and machin

,
”
ery , str iking on the j ob and trying in every ,

way to make it impossible for the employer to

ca rry on business .

Boycotting is a concerted r efusal to deal with

an o ffending employer especially r efusing to ,

buy his goods T he union lab el is a so r t of n ega

.
 T H E S E C TS OF SO C I ALI S M 35

tive boycott for unionists are advis ed to buy no

,
“ ”
goods exc ept th os e declared fai r by the lab el
att ach ed to them .

T he G ener al S trike — All of these are more or

l ess pow er ful weapons of union labor but the ,

gener al strike is the most formidabl e Of all the ,

most p er fect exp ression O f the solidarity of the

wor king class R ealizing the futility of local and
.

occasional st rikes the syndicalists wish to b ring

,

about on call a compl ete ces sation of work

, , ,

which would they b eli eve par alyze industry

, , ,

r uin the employe r s m ak e the wo r king class su

,

p reme and usher in the social revolution

, .

The gen er al strike is a univer sal sympathetic

strike and would if carried ou t accor ding to the
, ,

int ention be most disastrous to any country es

, ,

p ec ia ll y to thos e having la r ge citi e s depend ent on

the continuous ope r ation Of industry for all the
necessari es Of life .

However the gener al strike l ike the t ra di

, ,

tional boomer ang is a danger ous weapon for the

,

working class to use as it would p r obably do ,

more harm to them than to the capitalists against

whom it might be dir ected Also it would be .
,

foolish for the worker s to use it as if they were ,

in the minority it would fail ; and if th ey w ere

,

in the maj ority th ey could attain their ends by

,

political means and set up socialism at any time .

F or all that the syndicalists expect to use their

,
36 T H E S E C TS OF S O C IAL I S M

terrible weap on when the time com es and believe

that it will b ring about the desi red r esults .

A fter the r evolution the syndicalists think the

, ,

unions with thei r feder ations will r emain as the

, ,

structur e and organization of industrial soci ety ;

so ther e will be no ra dical change in the economic
,

syst em but onl y a tr ansfer of contr ol The ideal

, .

society th en as L evin e puts it is not a scheme or

, , ,

a utopia but something gradually evolved by the

,

unionist movement and p rep ar e d by the social

,

struggl es Of to day -
.

T he I ndu strial Union — The t r ad e union or

a niz a tion is of cou r se not a scheme or utopia
g , , ,

b ecause it e xists to day as a par t of the industrial

-

system ; but the assump tion that the structur e of

futur e soci ety will be along the same lines would

w
be decid edly utopian if it wer e not so lacking in
imagination .

At any r ate the syndicalists in Vie of recent

, ,

econo mic development especially in America

, ,

w
have been obliged to change thei r views Instead .

Of making the tr ad e uni on the basic unit of the

coll ective commonwealth they no say that the
industrial union will b e the p rimary organization ,

with local chapter s and tr ade unions subor dinate

—
to it much as now .

If this p r ophecy is ful filled the farm laborer s ,

will manage the farms th e miner s the mines the

, ,

r ailway employees the r ai l ways the steel wo rke r s ,

 T H E S E C TS OF S O C IAL I S M 37

the steel busin ess the sailor s and dock laborer s

,

the shipping the factor y hands the factory the

, ,

wholesale and r etail clerks the business Of

—
m erchandising and so on To quote L evine .

again ; Thei r idea is to tr ansform society into

afed eration of s elf governing p r oductive gr oups
-

working togethe r for the benefit O f a ll with in

str uments belonging to soci ety as a whole and
”
under the sup reme contr ol of the community .
1

J ust how the community would exercise this

sup reme contr ol especiall y in case of conflict b e
,

tween the p r oductive groups the syndical ists do ,

not clearly explain Ind eed the p roblem is for .

,

them ve ry di fficul t if not quit e u nsolvable If

, .

all pow er is to b elong to the industr ial unions the ,

r esults will b e nothing shor t of anar chy If on .

,

the other hand th e community is to be r eally

,

sup reme it will involve a high degr ee of cent ral

,

iza tion and stat e socialism Between thes e ex

.

tr emes th e syn di calist has great tr ouble in find

ing the golden mean But the tr aditions and .

sympathies of the syndicali sts lean str ongly to

war d decentr alization and anar chy .

T he I W W — The Industrial Worke r s of

. .

the Wor ld a re A merican syndicalists The or .

g a n iza t io n was for m e d in C hicago in the ye ar

w
1 905 by a gr oup of insur gen t unionists social ,

1 S yn di a l i m L i
c s ,
L vin N o th A m i an R i
ou s e e, J ly
r er c ev e ,
u ,

1 9 19 .
38 T H E S E C T S OF S O C IAL I S M

ists an d anarchists including W D Haywood , . .

,

C H Moye r W E Tr autman C O She rman

. .
, . .
, . .
,

D aniel D e L eon ( L oeb ) A M Simons Eugen e . .

,

V D ebs E rnest Unter mann Vincent St J ohn

.
, , .
,
“ ” “ ”
Father Thom a s Hage rty and Mother Mary
J ones .

The original idea was to have a double b ar -

rel ed o r ganization which shoul d ca r ry on the

class str uggle along both political and industrial

lines The r e was to be one gr eat industrial union
.

with sub di visions r ep r es enting national and inte r

national industr ies and c r afts This was intend .

ed evidently to super sede the American Fede ra

, ,

tion of L abor in the indust rial sph ere and the ,

socialist par ties in the political field .

The socialistic char acter Of the organization is

clea r ly seen in the p reamble to the cons tituti on ,
“
which r eads in p art as follows : The wor king
, ,

class and the employing class have nothing in

common .B etween these two class es a
struggle must go on until all the toiler s come to
gether on the political as well as the industrial
field and take and hold that which they p r oduce
,

by thei r labor through an economic organization,

of the wor king class without affiliation with any ,

” 1
p o litical pa r ty .

The di r ect actioni st in the I W W p resently . . .

P
l l B i
au nd n T h L n h i ng f th
r sse I nd te
e Wo k e au c o e us r er s

f th W o l d p 4 6
,

o e r , . .
40 T H E S E C TS OF S O C IAL I S M

states an d districts and an invisible indust rial

,

power or set of power s b ehind the scene infl u enc ,

ing and even contr olling the political These are .

the dark for ces moving myster iously in the back

g r ound about
, which V eblen has so much to say .

Why not says the nationa l guildsman r ecog

, ,

nize the dual character of ou r gov ernment and

freely admit that the industries of the country
ar e as much entitled to r ep resentation in congr ess

as the geogr aphical or r egional divisions L et ?

all the industrie s be feder ate d into natio nal

.

guilds and let the guilds elect a guild congress

which shall have c ontr ol over the or ganization of
p r oduction an d r elated matter s Then let ther e .

be a r egional congr ess as now r ep resenting the , ,

p eople as a whole especially in their capacity as

,

consumer s or user s of goods and s ervices .

A cco rding to this arr angement the guild con ,

gress thr ough the national guilds will attend to

, ,

p r oduction ; and the oth er congr ess p resumably ,

'

the sup reme power will see to it that the people

,

a r e not r obbe d by pa rtic ul a r guilds and that the ,

guilds do not quarr el too much with one anoth er .

All this wi ll involve the fix ing Of wages and

p rices equalization b y taxation, and all the other
,

feature s of state owner ship and cont rol .

M r G D H C ole one of the lea ding apostl es

. . . .
,
“
of this movement says : The N ational Guilds
,

man b elieves that industry ought to b e controlled

 T H E S EC T s O F S O C IAL I S M 41

by the wo rker s engaged in it ; but he believes also

that the State ought to o n industr y and that
pop ul ar control must be established over the
w ,

” 1
machin ery O f State
H er e M r C ole lets the cat ou t of the bag and
.
,

wh en fr ee fr om its syn di calistic and anarchistic

disguise guild so cialism appears in its p r op er
,

shape as Fabian State S ocialism .

Guild socialism appeals str ongly to many

peopl e not so much b ecause they favor socialism
, ,

as because they feel that the manufactu ring and

commer cial interests Of the cou nt ry the t rade ,

unions church es charitable soci eties and the like

, , , ,

should have di r ect and acknowl edged rep resen

ta tion in Congr ess and not be obliged as now
, , ,

to hover in the backgr ound trying to p er suade ,

the r ep res entatives of the people that th ei r s is

the only point of vi ew .

P erhaps it would be well to b ring the so called -

”
dark forc es out into the op en light of day ,

although it must be cl early und er stood as in the ,

national gu il dsmen s scheme that the r egional

’

congress rep res enting the peopl e as a whole

, ,

must be sup reme Apart fr om that the p ro

.
,

posed national guilds a re not very di ffer ent in ,

form and function fr om the Russian sov ietaj

,

B ol sh evism — B olsh evism is an outgr owth of

.

the R ussian S ocial D emoc r atic P ar ty which in ,

G D H C ol G i l d S o ia l i m Living A g J l y 26 19 19
1 “
. . . e, u c s ,
e, u , .
 w
42 T H E S E C TS OF S O C IA L I S M

the y ear 1 90 3 split into t o b r anch es : the B 0 1

,

w
shev iki ( meaning the maj o r ity ) and the Menshi

viki ( meaning the minor ity ) The B olsheviki

.
,

ho w er e r eally in the mino rity fr om the r ev ol u

tion of 1 90 5 to that of 1 9 1 7 w ere the mor e r adi
,

cal gr oup and h eld that R u ssia could have social

ism without fir st p assing through the industr ial
—
stage could leap over the wall as it w er e with , ,

ou t going thr ough the gate O f capita lism .

The M enshiviki on the cont r ary many of

, ,
“ ”
whom wer e intellectuals h eld to the typical
,

Marxian view that R ussia or any oth er country

, ,

must pass th r ough the p repar ator y stage of cap

“ ”
ital ism befo re it would be ri p e for the r ev ol u
tion and that a p r ematu r e r evolution would
,

perish like an untimely bi rth .

A fter the r evolution Of March 1 9 1 7 the in , ,

fl u ence of the B olsh eviki in the a rmy and in the

P etr ograd sovi ets consta ntly incr eas ed until on , ,

N ovemb er 7 th ey seized the r eins of gove rnment

, ,

and under the lead er ship of L enin and T rotzky

, ,
“
they set up the sovi et gove rnment or the dicta ,
”
tor ship of the p r oleta r iat .

Since that time a bitt er dispute has been going

on b etween the mod er ate socialists and the B 0 1

shevik r evolutionists as to which a re the t ru e and

or thodo x follower s of Marx The B olsh eviki .

r ega r d the mode r a tes as r eactiona ries and p e rse ,

cute them as tr aitor s to th e revolution .

 T H E S EC TS or S O C IAL I S M 43

The moderate socialists on the othe r ha nd re

, ,

gar d the Bolshevi ki as danger ous h ereti cs car ,

ri ed awa y b y r evolutiona ry f er vo r Their chi ef .

error lies in thi nking a p ermanent r evolution

possible in R ussia at the p resent time ; but they
a re also accus ed of denying d emoc r acy in that

they have dissolved the Constitu ent Assembly ,

suppr essed freedom of the p ress and free speech ,

per secuted thei r socialist co mr ad es and final l v , , ,

set up a dictator ship of the p r ol eta riat di ff erent

fr om the Mar xian mod el T he mod erates say.

that the B olsheviki a r e the tr ue reaction a ries b e ,

cause th ey have b r ought r uin to th ei r country

and indefinit ely postponed the coming of r eal ,

p erma nent successful socialism

, .

M a n?" a D u al P ersonal ity — I t is inte resting

to find the pot calling the kettle black as the con ,

sp ira tor s blam e one anoth er for the failure of

th ei r plans As to their spiritual fath er Marx

.
, ,

the tru th is that he was a dual p er sonality whose ,

w ritings a r e both evolutiona ry and revolution

a ry
, and a re susc eptible of diver se and even
contr adictory int erp retation acco rding to the ,

disposition and purpose of his read er s A s M O .

w
ha mmedans O f ever y s ect app eal to the Kor an
.
,

so socialists of ever y faction find texts in Mar x ,

with or ithout the context to suppo rt thei r ,

vi ews .

F or e xam pl e in the, C ritique of P olitical

44 T H E S E C T S OF S O C IAL I S M

Econ omy published in 1 8 5 9 M arx affirm s :

, ,
“
N O social or d er ever disapp ear s before all the
p r oductive forces for which the re is r oom in it
have been developed ; and new and higher r ela
tions of p r oduction neve r app ear befor e the
materia l conditions of th eir exist ence have ma
tured in the womb O f the old society
” 1
.

The C ommunist M anifesto on the othe r hand , ,

published in 1 8 48 b reathes the spi rit of consp ir,

acy for a violent and sudden r evolution ; and in

the N eue R h einisch e Z eitung in the year 1 849 , ,

“
he wrot e : Wh en ou r time comes r evolutionary ,

terr orism wil l not be sugar coated Th er e -

.

is but one way of simplifying short ening con , ,

centra ting the death ago ny of the O l d soci ety as ,

the bloody lab or of the new world s bir th revo — ’

” 2
l u tionary t err or .

The Bolsheviki th en may be taken to r ep r e , ,

s ent the earlier and more r evolutionary form of

w
Marxian d octrin e while the moder at e socialists ,

rep r esen t the late r an d san er Ma r x who had ,

tone d do n and even r epudiat ed some of his

“
forme r teachings O nce he said half in j est : I
.
,

am not a Marxist ‘

It is no won der then that .

, ,

ther e a r e Marxists and Marxists of numerous

factions all taking fr om Marx what suits th em
, ,

1 A C ont i b t ion t o th
r C i ti q
u f P ol i ti l E no my Ae r ue o ca co u

th o P f
.

’
r s re ace
0 f V G S imkh it h M S o i l i m p 19 4
.

z . . . mi m ov c ,
ar s ver su s c a s , . .
 T H E S EC T s OF S O C I ALI S M 45

and rejecting and even d enouncing what they do

not l ike .

N otwithstanding all that the moder ate social

ists have said in r epudi ation of the B ol sh eviki ,

there can be no doubt that P r ofessor Ely is right

in saying : Ther e is no myste ry about the nature
or the intellectu al author ity Of Bolshevism It .

is simply Marxian socialism as L enine and his ,

” 1
associates have told us innumerabl e times .

C ommu nism — C ommunism as the name im ,

plies is Opposed to p rivate own ership of p r op

,

erty holding that p r actica lly all p r op erty should

,

belong to the community and be administer ed for

the good of all whereas the more moder ate social
,

ists favo r the socialization of capital only leav ,

ing p er sonal p r operty in p rivate hands Com .

mu nism is the ext reme fo rm of socialism but ,

there is a l so a form of anarchism known as com

munist anar chism which includ es most of the
-
,

w
anar chists .

S ocia l ists usually Obj ect t o being calle d com

mu nists but it is nom orthy that Marx and his
,

associates call ed th ems elves comm unists that the ,

Bolsheviki of Russia the Spartacans of G er ,

many and many r adicals in the United S ta tes

,

and other countri es call themselves by that name .

“ ”
The fi r st u se of the wor d socialism in Eng
I R T .Ely Wh t i B l h i m R vi w f R vi w
.
,
“
a s o s ev s f” “
e e o e e s,

Nov mb 1920
e er, .
46 T H E S E C TS OF S O C IALI S M

lish is found in the P oor Man s Guardian in 1 8 3 3

’

after which it was commonly us ed to designate

the follower s of O w en and Fourier The wor d .

“ ”
communism is said to have b een first u sed in
P aris in the year 1 8 40 as appli ed to the follow
“ ”
er s of B abeuf then call ed , equalitarians In .

the Comm unist Manifesto of 1 8 4 8 Mar x and ,

Engels apply both names to th ei r p redecessor s ,

but s eem to have p ref err ed to call themselves

communists .

L ater the wor d sociali sm became mor e p O p u

l ar per hap s b ecause of its milde r meaning while
, ,

the wor d C ommunism was appli ed to extreme

socialism and to thos e socialists who like Owen ,

and Fourier favored the t rying Of coll ectivism in

,

small exper imental comm unities b efor e launch

ing it on a national or international scale N ow .
,

however socialists of the extr eme l eft every

,

where cal l themselves communists and the r e can ,

be no doubt that most forms of socialism have a

str ong leaning towar d communism .

A narchism —Anarch ism is the name given to

.

the theory that all gove rnments ar e wr ong an d

unnecessary Anarchism is extr eme individual
.

ism and its advocates are bitte rly oppos ed to the

,

for cible contr ol O f man by man wheth er by gov ,

ernm ent or by the powe r Of p r ope rty .

The anar chist comm unists who are the most

-
,

comm on kind of anar chists esp ecially in Russi a

, ,
48 T H E S E C TS OF S O C I AL I S M

tion o f ideals wher e socialism ends and anarch

,

ism begins Anarchism is the despair of

.

socialists but state social ism is thei r nightmare

, .

S ocial ism D ifi erent in E very C ou ntry — So

cial ism or coll ectivism — for the words have the
same meaning is a r eligion of many sects but
-
,

wh en all of them ar e mentioned and described ,

the story is o nl y half told S o cialism is di ff erent

.

in ever y diffe rent country accor ding to r acial ,

temper ament national ways of thinking per son

, ,

a l p eculia r ities economic conditions and all that

, , .

In Germany ther e is a leaning towar d state

socialism of the P r ussian type In Fr ance social .

ism is r evolutionar y idealis tic and anar chistic

, , .

In England it is cautious comp r omising and e x , ,

p e r im enta l In.B elgium it is lar g ely co ope r a -

tive In Spain and Italy it is extr eme and

.

violent In Russia it is r evolutionary visiona ry

.
, ,

and an archistic although the S oviet government

,

is a centr aliz ed dictator ship r es embling state

socialism .

T he vari eties of socialism in every count r y ar e

numerous and perplexing with a tendency to ,

divide and subdivide on slight p r ovocation In .

Russia for example there were b efore the revo

, ,

l u tion two main divisions the S ocial D emoc rats ,

and the S ocialist R evolutionists each split into ,

sever al s ections O f the S ocial D emoc r ats ther e

.

wer e the B olsheviki and the Mensheviki the lat ,

 T H E S E C T S OF S O C IALI S M 49

ter being in two gr oups the N ationalists and the

,

Int ernationalists T r otzky was for merly an

.

Int ernational Menshevik The r e wer e al so the .

Unifi ed S ocial D emocrats and the P opulist

S ocialists.

Simila rly the S ocialist R evolutionists orig

, ,

inal l y a p easants party we re divided into the

’
,

Right the Center and the L eft K erencky was

, , .

a S ocialist R evolutionist of the R ight or conserv ,

ative wing Katherine B reshkov skaya was a

.

R evolutionist of the L eft or extreme wing a d , ,

v oc a tin violence and te o St ange to say the

g r r r r .
,
“
G randmother of the R evolution refuses to ac
”

knowledge her gr andchildren the Bolsh eviki , .

A merica n S ocialist P a r ties — I n the United

States ther e were fo rmerly two main socialist

w
—
parties the S ocialist L abor P arty ( 1 8 7 7 and

w
the S ocial D emocr atic P a rty ( 1 8 9 8 later

w
merged in the Socialist P ar ty ( 1 90 1 no by
far the la rger body T he a r caused a split in
.

the S ocialist P arty the p ro ar minor ity resign

,
-

ing and forming the S ocial D emoc r atic L eague .

In 1 9 1 9 the S ocialist P arty again split into two

—
parts the L eft Wing forming itself into the
Communist P arty P res ently this gave birth to
.

the Communist L abor P arty after which both ,

parent and child b ecame affiliat ed with the Mos

cow or Thi rd Int ernational The Socialist P arty .

also has l eaned towar d the S oviet gove rnment ,

50 T H E S E C TS OF S O C IA L I S M

especially since it lost its best Intellectuals in ,

”

cluding Spargo Walling Ghent S toke s and

, , ,

Russell but of late it has l ost most of its suthu

,

sia sm because of the intole r ance of the Moscow

International .

I n addition to these gro ups which might ,

change at any time ar e the I W W rep re sent

, . . .
,

ing Ame rican Syndicalism ; the N onpartisan

L eague inclining towar d state socialism or
1
,

state capitalism ; the N ational L abor P ar ty

( 1 9 1 9 r ep r esenting insu r g ent or soc ialisti c

unioni sm ; and the Farmer L abor P ar ty ( 1 9 2 0 )

-

a semi socialistic alliance of the N ational L abor

-

P arty with s ever al other r adical gr oups .

I t would be possible to give a simila r list of so

cia list factions in ever y co un try which would ,

mer ely se rve to emphasize the unscientific char

“ ”
acter of sci entific socialism With all their .

p r etensions to scientifi c spi rit method and re ,

su l ts , the socialists stock in t r ade consists

’

chi efly of intempe r ate criticism Of things as they

a re , and a glowing d escription of the future
wor ld as the y see it in th ei r dreams .

S Ap p ndix
1 ee e .
T H E EC O N O MI C I N TE RPR E T A TI O N
O F HI S T O RY

What stu dent of history has not felt the need

o f an inte rp r et er ? History is frequently little
more than a ch ronicle of ev ents that follow one

w
anoth er like moving pict u res op er ated by ma
,

chin ery that we do not see contr olled by motives

,

that e cannot und er stand Ka rl Marx with

.
,

his materialistic or economic int erp retation p ro ,

fesse s to admit us b ehind the sc enes wh ere we ,

may get a glimpse O f the power that r uns the

show and und er stand the moving p rinciple of
,

social evolution .

But why should the p r ocession Of the ages be

intelligible to man Evid ently says the p hil oso
?
,

phe r H egel b ecause the wo rld itself is the ex

,

p ression of that r eason which is the ess ence and

soul of it The mind o f man is the refl ection or
.

counterpart of univer sal r eason Man is the .

measure of al l things becaus e he was made in

,

the image of God — the absolut e History is the

.

unfolding Of the divine thought in the world ,

which man can unde r stand b ecause his own

thought develops in the same way .

51
5 2 EC O N OMI C IN TE RPRETATIO N O E H I S TORY

L ogic ,with Hegel is the univer sal science for

, ,

the p r ocess o f thought is the p r ocess of evolution .

Thought advances by a seri es of denials strug ,

gles an d comp r omises We discover a truth

.
,

and th en another t ruth so di ffe r ent that it seems

to contr adict an d quarr el with the for me r .

P resently g etting more knowl edge we see that

, ,

both are opposite sid es of a large r whole Th en .

the new p rinciple guides us until we find it

opposed by another which again l eads to the
,

—
dis covery of a still high er law and thus knowl
edge gr ows fr om mor e to more .

T he H egelia n M ethod —This way Of think

.

I ng I S the celeb r ated dialectic method of H egel ,

which consists in looking for appar ent contra dic

tions in truth and then finding a comp romise or
,

r econciliation in a b r oad er and high er p rinciple .

The fir st thing is the th esis ; the s econd the anti

“
thesis ; and the thi r d the synth esis Th esis anti .
,

”
thesis synthesis is at once the formul a for men
,

tal development and for the gen er al p r oc ess of

human evolution History th er efor e accor ding
.
, ,

to H egel c a n be a science a rational explanation

, ,

o f social life and p r ogr ess .

Kar l Ma r x was a disciple o f Hegel and at the

’
same time an opponent O f his syst em H egel s .

Vi ews concerning the ideal developm ent of so

ciety we r e fooli shness to Marx By H egel .

eason was l ce d a t t he b eginnin of things ; b y

r p a g
 E C ON OMI C IN TE RPRETATIO N OF H I S TO RY 53

Ma rx it was placed at the end Of material ev ol u

tion reflecting the wo rld b ecause it is the p r oduct
,

of the wo rld Thus Mar x tu rned the dialectic of

.

H egel upside down placing it as Engels says , , ,

upon its fe et instead of on its head Thus Marx .

“
says : It is not the consciousness of men that
determin es thei r existenc e but on the contr ary , , ,

th ei r social existence det ermines thei r conscious

” 1
ness .

Material evolution th en is the foundation of , ,

social evolution and the key to the inte rp reta

,

tion of history Y et while Mar x rejects the ideal

.

istic philosophy of H egel he does not get rid of ,

the H egelian dialectic way of thinking but is ,

always looking for negations contradictions and ,

conflicts not onl y b etween the ideas in his own

,

mind but between op p osing for ces in society

,

fr om the ear li est times until the p r esent day .

The theory of the class strpggl e therefore is the , ,

most vital part of the mate rialis tic inte rp r etation

O f history .

h
T e M a rai an T heory —Accor ding to Marx . ,

every state or stage of human society like the ,

w
r est O f the unive r se is unstabl e and forever
,

w
changing becaus e it has within it all the elements
,

Of its O n destruction opposing forces that will ,

b reak it up onl y to form a ne and high er con

,

1 C ont i b t ion t o th C i t i q
r u f Peo li
r t i l E o nom
ue oy A t h o ca c u
’
r s
P f
.

r e ace.
54 E C O N OMI C IN TE RPRETATIO N OF H IS TO RY

dition until contr adictions and conflicts shall

,

cease in the pe r fect harmony of democr atic

w
collectivism .

P erhaps the best statement of the Marx ian

theory Of histor y is that given by Engels ho ,
“
puts it thus : In eve ry historical ep och the p re ,

vailing mode of economic p r oduction and e x

change and the social organization necessar ily
,

following fr om it form the basis up on which is

,

built up and fr om which alon e can be explained

, ,

the political and int ell ectual history of that

ep och ; that consequently the whol e history of
mankind ( since the dissolution of p r imitive tr ibal
society holding land in common owner ship ) has
,

been a histo ry of class struggl es contests b e ,

tween exploiting and exploited rul ing and ,

” 1
opp ressed class es .

H er e as S eligman Skelton and othe rs have

, ,

shown are two quite distinct interp retations of

,

history : the one a gener al theory that all social

events may be t rac ed to econo mi c causes ; the
oth er a particular application of Hegelian meth
od — the theor y Of the class str uggle .

The theo ry O f Marx is really an extension of

the theo ries of write r s like Montesqui eu and
Buckl e who laid str ess on geogr aphy climate , ,

and oth er featur es O f man s physical envir on ’

1 P fa ret o th C omm ni t M ni f to by F d i k Eng l

ce e u s a es re er c e s.

J an a y 30 1888
,

u r , .
56 E C O N OMI C IN TE RPRETATIO N OF H I S T O RY

their p risoner s Their mor al and r eligious life

.

was determined by the n ec essiti es of thei r physi

ca l envir onment .

P astor al trib es are mor e numerous than those

in the lower stage b ecaus e they have more to eat
, .

They a r e migr atory b ecaus e th ey must find

,

pastur e for their sh eep and cattle They go in .

large bands under chi efs or patriarchs and Often

, ,

have slaves whom th ey can u se and control .

Th ey wor ship the h eav enly bodies for they ,

w
usually live in the op en plains .

w
Agricultur al p eople on the oth er hand live in
, ,

one plac e ,build hous es and fenced cities o n ,

land ar e peac eful and car ry on chiefly defens e

, ,

war s . They maintain standing armies have ,

kings or other per manent rul er s pay tax es and , ,

keep many slaves Th ey a re str ongly bound by

.

custom and t r adition d evelop a complicat ed r e

,

l igiou s system and in time acqui r e a knowledge

,

of arts and sciences accumulating civilization as

,

they accumulate p r oper ty .

The migr ations of ancient times it is said , ,

w ere chi efly for the sake Of acqu i ri ng hunting

gr ounds and pastu res for cattl e ; for lands ,

houses sl aves and plunde r of eve ry oth er kind

, ,
.

The d ecline of the R oman Empi re was du e to

excessiv e taxation and the r uin b r ought upon the
small far m er s by the latifundia or great estates .

The C rusades wer e caused by the inte rfer enc e O f

 ”
E C ON OMI C IN TE RPRETATION O F H IS T ORY 57

the Tur ks with the Eastern trad e of Venic e and

G enoa .

M odern E a a mp l es
' — Similar economic int er
.

p r eta tions could be multipli ed without end usu ,

ally containing a modicum of truth but showing ,

little app r eciation O f the complexity O f social

forces T he English constitution in this vi ew
.
, ,

was the r esult of r esistanc e to taxation on the

pa rt of the bar ons and the fr ee citi es T he R e .

v iv a l o f L ea rning was the economic awakening

o f w est er n Eur ope T he P r ot estant R efo rma

.

tion was a r eb ellion of parts of E u r O p e against

the sal e of indulgenc e s and othe r exactions by
the Chu rch The Spanish Fr ench and English
.
, ,

alike came to America in s ea rch of gold The .

Amer ican Revolution was fought as a p rot est

against a rbitr ary taxation and for lib erty of ,

t r ade The F rench R evolution was the reb ellion

.

of the p eople against the tyr anny of the land ed

ar istocr acy .

The W a r of 1 8 1 2 was fought to secur e fr eedom

in neutr al tr ade T he invention of the cotton
.

gin fast ened slavery upon the South for mor e

than two gen er ations The people of the N orth
.

obj ected to slavery becaus e it was not pr ofitabl e

there T he p r otective tari ff and the slave ry
.

w
qu estion w er e the chi ef caus es of s ec ession s enti
m ent in the S outh T he Cuban W ar it is said
.
, ,

as p r omoted and p rovoked by the su ar inter

g
58 E C ON OMI C IN TE RPRETATIO N O F H I S TO RY

ests for thei r own advantage An unde rlying .

cause of the late World W ar was a commer cial

struggle between G ermany and England T he .

foreign policy of all mod ern nations is govern ed

chiefly by consider ations of commerce and every ,
“
one of them is in the wor ds of N apoleon a
, ,
”
nation of shopkeepe r s .

Within a given nation socialists say the gov

, ,

ernment and the whole lega l system has been

created by the r uling classes for their own ad

vantage The p r evailing sys tem O i mor als is
.

”
merely bourgeois mor ality designed con
,

sciou sl y or u nconsciously for the p r ot ection of

p r operty and the p er sona l r ights of the capitalist

class The Chur ch the schools an d most so
.
,

cieties a re bul war ks o f capitalism ; and most

cle rgymen teach er s physicians lawye r s and

, , , ,

othe r p r ofessional people ar e mer e par asites or

,

hange rs on of the capitalist class

-
R eligion .
,

even has been invented as a shr ew d t rick of the

,

r ul ing class es to keep the p e ople humble and

patient for the sake of r ewar ds in heaven while ,

in this world th ey l ive on the crumbs that fall

fr om the r ich man s table
’
.

C omp l exity of S ocial F orces — The economic.

interp r etation of history then in its mo r e gen

, ,

e r al form is an attempt to apply the m ethods

,

o f physical sci enc e to the study o f hist o ry by ,

t r acing all movements and events back to th ei r

 E C ONO MI C IN TE RPRETATION OF H I S T ORY 59

ca us es and by reducing all the secondary causes

,

to a single for ce — the economic Because Of .

this the r e is some r eason for calling the Marxian

“ ”
system scientific as distinguished from the ,

utopiani sm of earlier writ er s .

It reminds one however too str ongly of the , ,

”
economic man that fiction of c ertain English
,

economists by which they thought to make of

economics a pu rely theoretical and exact scienc e ,

like mathematics This br ave att empt was bound

.

to fail as it did because the imaginary economi c

, ,

b eing cont r olled almost wholly by the d esir e for

,

gain did not correspond to men as th ey a r e even

, ,

among such ke en business men as G re eks J ews , ,

Armenians Scotch and Yankees

, .

In laying so much stress upon economic mo

tiv es Ma rx lays hims elf op en to the cha rge of
,

taking a narrow and unsci entific vi ew Of life of ,

trying to explain the whole of life by what is

“
at most only a part of it
, Is not the l ife more .

”
than meat and the body than raiment
,
? The
instinct of self p res ervation is mor e fundamental
-

than the economic instinct M en desi r e economic .

goods for the sake of life not life for the sake Of ,

w
the means of life .

C ontradictions —Indeed when we consider

.
,

man as he is e find him a complex b eing of

,

numer ous instincts which cannot b e reduc ed to ,

a single p rinciple Of fe eling and action The .

60 E C O NO MI C IN TE RPRETATIO N OF H I S TO RY

re pr oductive instinct c ertainly is not economic

, ,

in its char act er and fr equently if not usually

, , ,

takes fir st place in human thought and b ehavior .

A nd y et a philosophy of history based on the

,

study of pop ul ation and family life alon e how ,

ever impor tant woul d be most one side d an d

,
-

inadequate .

The r eligious instinct cannot b e tr aced to an

economic o rigin and Often in the history of
, ,

individuals and communities it has determined ,

life and a ction in Opposition to Obvious economic

interests T he history of r eligious per secution is
.

ful l of such instances not to mention the positive

,

e ffects o f great r eligious movements on the

cours e of history .

I nstead of t racing C h ristiani t y Buddhism , ,

Mohammedanism and other world r eligions to

, ,

economic causes it woul d be mor e p r ofitable to

,

note the economic and p olitical e ff ects which have

p roce eded fr om them as in the work of mission
,

ari es in und eveloped countr ies Wor th mention .

ing too is the e ffe ct of r eligious r est days upon

, ,

industrial development the taboo on meat on ,

fast days in its r elation to the fishing industr y ,

a nd so on O ne coul d almost invent a r eligious

.

interp r eta tion of history if one wished to carr y

“ ”
the scientific method to such absur d extremes .

N on E conomic I nstincts
-
O the r impuls es
. ,

too exist side by side with th ose alr eady men

,
 E C ON OMI C IN TE RPRETATIO N OF H I S TORY 61

tioned, and have much to do with the determi

nation of human conduct Such are the fighting .

instinct ; the instinct Of play ; the love of orna

m ent of power of plac e O f p r aise ; ambition
, , , ,

p r ide and self esteem ; the artistic musical lit

-
, ,

era ry and dr amatic instincts — the whole gamut

of instincts em otions and impulses which make
,

up human nature .

Then ther e are r acial char acte ristics the dy ,

namie ener gy of exceptional men the conse rva ,

tive influenc e of custom the stimulating power of,

eloqu ence the suggestibility of the cr owd and a

, ,

thousand and one other ci rcumstances of which

the historian must take note although they do ,

not agr ee with any single rule or formula L ife .

is highly compl ex both in individuals and in,

soci ety and cannot be explain ed on a single

,

p rinciple wheth er economic or otherwise I n

, .

d eed in any true history the human being as he

, ,

is with all the complexity of his natu r e must

, ,

occupy the center of the stage as a fo rce to be ,

r eckon ed with and any att empt to explain his

,

action by any one single motive or cause must

r esult in failur e .

The very examples which the Marxians give

may b e used to show that th eir main p r oposition ,

while containing a large measure of tr uth gives , ,

at b est a par tial explanation of histor ical facts

,

and mov ements The social life of p rimitive

.
62 E C ON OMI C IN TE RPRETATIO N OF H I S TO RY

peoples is by no means exhausted when we have

ful ly describ ed the way they get their living nor ,

can the ir behavior be altogethe r t r aced to eco

nomic conditions I n fact economic conditions
.
,

a re Often chang ed by human thought and effo r t ,

for man i s not the passive r ecipient of p r ogr ess ,

but the active c reator of it .

Migr ations like those of the Ge rmanic t rib es

,

who invaded the R oman Empi r e while p r obably ,

due chiefly to over pop ulation of the nor th ern

-

lands and the p ressur e of enemi es fr om b ehind ,

were pe rhaps inspi r ed as much by the love of

adventur e fighting and military glor y as by the
, ,

desi r e to plunde r the t reasures of the civilized

world The decline of R ome may hav e be en due
.

to the loss of her best men in war s to vice dis , ,

e as e and the de cay of the ancient r eligious and

,

mor al standar ds The C rusades cannot be ex

.

plaine d without taking account of r eligious

enthusiasm ; nor can the R efo r mation be und er

stood without a n app r eciation o f the power of

r eligious motives .

The gr owth of the B ritish constitution I S a

r id dl e to all who do not unde r stand the stu r dy ,

bulldog br eed that would not submit to the

,

tyr anny of eith er king or bar on O ft en too .

, ,

questions Of taxation both in England a nd ,

America wer e mere p retexts for self assertion

,
-

and reb ellion .

64 E C ON OMI C IN TE RPRETATIO N O F H I S T ORY

these tor ch b ear er s O f civilization without whom

-
,

the wor ld woul d still be in the darkness of b ar

b arism .

Humanitarianism is non economic and even -

,

a nti economic in its cha r acte r

-
, S ocialism itself .
,

as a syst em of thought and as a social movement , ,

has p r oceeded fr om the aristocracy and the bour

eoisie to whose e conomic inte r ests it is bitte rly
g ,

oppose d .

A s to compar ativ ely r ecent events in wo rld

history while economic inte rp retation thr ows
,

much light upon th em it is often mislea ding as ,

well as par tial in its explanations There is no .

evidence to S how that the sugar inter est s b r ought

on the Cuban W a r nor that the manufactu r er s
,

of munitions we r e an impo r tant cause of the

World W ar G ermany and England w er e b usi

.

w
ness r ivals no doubt and the economic inter ests
, ,

o f G er many and R ussia clash ed in the B alkans ;

but the ar cannot be explained on these grounds

alone The r e wer e quarrels O f long standing
.
,

r acial animositi es dynastic ambiti ons national

, ,

aspir ations per sonal char acteristics and many

,

other factor s in the S ituation .

H istorical E xp l a na tion D if ficu l t — S O com

plicat ed ind eed is any historical combination so
, , ,

var iable the human and physical factor s so ,

pow er ful and even explosive the for c es th at ,

there is no t ell ing what will come ou t of it and ,

 E C ON OMI C IN TE RPRETATIO N OF H I S TORY 65

no complet e explanation of the r esul ts Consid er

for exampl e the p r obabl e cour se of the
,

Germany had won the B attle of the Marne if

a r if
.

w
,
,

the c ruis er s G oeb en and B r eslau had not escap ed

from M essina if the B ritish had captured Gal
,

l ip ol i if the L usita nia had not been sunk if

, ,

K erensky had been a str ong administr ator if ,

L enin and T rotzky had not b een allowed to go

to Petr ograd if the policy of the United S tates
,

had been gove rned wholly by economic motives .

In view of such complexity O f the tr emendous

,

latent for c es involved of the influence O f men

, ,

great and little of great ev ents arising by slight

,

occasion like a confl a gra tion fr om the lighting

,

o f a match in vi ew of all that is involved

,
-
,

p r actically no historians defend the c rude eco

nomic interp retation of Ma rx and Engels ; and

w
some take the gr ound that the mechanical method
Of physical sci ence is not applicable to histor y as ,

an historical combination is always ne and

unique the r esult always containing something
,

mor e th a n the sum of all the caus es Evolution.

,

as the philosoph er B ergson would say is cr eative , ,

and the explanations of the socialists do not

explain .

And wh en we come to p rediction in which ,

Marx and his school so freely indulge the taking ,

of such lib erti es with the future the p res ent b e

,

ing unknown is neithe r historical nor sci entific

, .
 E C O N OMI C IN TE RPRETATIO N OF H I S TO RY
1

66

P r ofessor F M Fling goes so . . as to say : It far

should be noted that p r ediction in natur al science
has nothing historical in it ; natur al sci enc e can
not p redict the u nique History never r epeats .

” 1
itself .

P rop hecy The futur e if not absolutely dark

.
-
, ,

is so obscured that it is safer and mor e sci entific

w
“

not to p rophesy N o doubt if we knew all about

.
,

the seed we might p r edict the char acter of the

,

t ree but ho can we p r ophesy concermng seed

,

that we do not under stand or a tr ee the l ike of ,

which we have never seen ?

w
If history r epeats itsel f p r ogr e ss is not to b e ,

e xpected ; and if we are to hope for p r ogr ess ,

ho can we tel l what kind of p r ogr ess it will be .

Besides we are involve d in the flow and whir l of

,

things and cannot gain a point of View fr om

,

which to see the direction in which we are mov

ing The economic interp retation of history may
.

th row some light upon the p ast, but the futur e

is sh r ouded in mist which those dim and partial ,

r ays cannot penetr ate .

E conomic p r ophecy at best is mer e conj ee , ,

tu re and has not yet attained the dignity of

,

scientific demonst r ation A degr e e of p r oba .

b il ity might be claimed for it But p rophets do .

not all agr ee The s ocialist may p r ophesy in a

.

voluble and plausible way while the capitalist , ,

F M Fl in g T h W i t i ng f H i to y p 23
1 . .
, e r o s r , . .
 EC ONO MI C IN TE RPRETATI ON OF H I S TO RY 67

with equal plausibility may p r ophesy against ,

him and the futur e alone can settle the u n

,

s cientific conflict of opposing p r obabiliti es .

However the capitalist has the advantage of de

,

fending a workable and working system while ,

the socialist with c hil dl ike faith is ready to take

, ,

a leap in the dar k .

T he C l ass S truggl e —I f the gene r al theory of

.

economic inte rp retation so poorly fits the facts

of history what shall be said of the more nar row
,

Marxian theory that history is to be interp r e ted

almost altogethe r in ter ms Of the class struggle ?

T he more gene r al th eory as P r ofesso r Seligman ,

has shown might be held by an ou t and out

,
- -

opponent of socialism but the theory of the class

,

struggle is one of two main pillar s of the Marx

—
ian templ e the othe r being the theory of e x
l oit tion or surplus value
p a .

The gener al economic interp retation with all ,

its limitations and exagger ations is a fruitful

conception ; but the theory of the class s truggle
is a mere caricatur e of historical facts A s P r o .

fessor Skelton puts it :

“
J ust as the economic
field is not as wide as human life so within this ,

field class struggl e is not the sole form in which

w
” 1
the i nfl uenc e of economic conditions is exe rt ed .

E conomic I nterp reta tion R ej ected — Mar x s ’

view o f history as always narr ow crude and , ,

0 D S k l t on S o ia l i m a C i ti a l A na l y i
1 . . e ,
c s ,
rp 1 10
c s s, . .
68 E C ON OMI C IN TE RPRETATI ON OF H I S T ORY

har shly economic but Engels in his lat er year s , , ,

had to confess that he and M ar x had mad e too

much of the economic factor in social evolution .

“
He wr ote : Marx and I are partly resp onsible
for the fact that younge r men have sometimes
laid mor e stress on the e conomic side than it
dese rves In meeting the attacks of ou r op
.

p on en ts it was necessa r y for us to emphasize the

domin ant p r inciple denied by them ; and we di d

not always have the time place or oppor tunity to ,

let the other factor s which wer e conc ern ed in the

”
mutual action and r eaction get thei r dese rts .
1

But E ngels and all oth er orthodo x socialists

”
call thei r syst em scient ific because of its eco
nomic interpretation which th ey believe unv eils , , ,

the past r eveals the futur e and assures the reali

, ,

z a tion of thei r d ea r est hopes Y et historians re .

'j cet it the highe r c ritics e xplain it away while

; ;
the orthodo x blindly hold it fast not knowing ,

what else to do The case is well summed up by .

P r ofessor S imkhov itch thus : T o day such is

“
-
,

the i r ony Of fate the economic inte rp r etation of ,

history while of gr eat valu e to the historical

,

student is an unyi elding and m er cile ss ste el tr ap

,

in which so called scientific socialism is caught

-

” 2
and held .

1 F d i k Eng l l tt dat d S p t mb
re er c e s, 1890e C f Ma
er e e e er ,
o o i a
. .

za ryk P hi
, l p h h i ls gi h G ndl
sc e d u M .
x m
soc o op sc e ru . . r
.

is u s, .

1 04 .

2 V . G S imkhov itch , M
. arxism v er sus S ocial is m, p. 46 .
THE M ARX IA N T HE O RY O F VAL UE

It has Often been claimed that the labor cost -

w
th eo ry of value has no vital r elation to the gen
e ral body of socialistic doctrine but as L B , , . .

Boudin of N e Y ork one of the most o r thodox

, ,
“
socialists rightly says : T he Mar xian theoreti
,

cal syst em is one solid structur e and cannot be

p r oper ly understood unless viewed as a whole
fr om foundation stone to r oof coping
-
T he -
.

sy stem must be examin ed as a whole and acc ept

ed or r ej ect ed in its enti rety at least as fa r as ,
” 1
the structur al parts are conc erned .

“ ”
In Marx s great book Capital which should
’

, ,
“ ”
hav e b een tr anslat ed Capit al ism he gives fr om ,

—
his p eculiar p oint of vi ew the point of vi ew of
economic or mat er ialistic int erp r etation— a n ex

amination of capitalistic soci ety designed to S how

“
the p revailing mode of economic p r oduction and
the par ti c
”
exchange , ular for m of r obb ery or
exploitation b elonging to capitalism and the ,

ki nd of class st ruggle which must ar ise out of the

conflict of interest s b etween the employer s and
1 L B B o din T h T h
. . u ,
ti l S y t m f K l M a x p 49
e e or e ca s e o ar r ,
. .

69
70 T H E MARX I AN T H E O R Y or VA L U E
the employe d I n early times Mar x woul d say
.
, ,

we had slavery ; later ser fdom ; and now under , ,

“ ”
capitalism we have wage slave ry which will
, ,

continue with incr easing misery u ntil the social

r evolution .

What Marx is r eally t rying to show then , ,

under cover of cer tain teachings of A d a m Smith ,

R icardo and other English economists is that the ,

p r oletariat the working class do p r actically all

, ,

the work create all commodities and values and

, ,

yet
the nothing yet ,

live upon surplus value stolen fr om the

p r ol etar iat .

R icardo s L a bor C ost T heory M dap tcd

’
- — In .

ca sting about for a weap on with which to smite

the P hilistin es Kar l Ma r x found r eady to hand
,

the labor cost theory of R icar do which after

-
, ,

some trimming and sharpening he used against ,

the economists themselves and othe r defender s

o f capitalism R icar do says : The value of a
.
“

commodity or the quanti ty of any othe r com

modity for which it will e x change depends on the ,

r elative quantity of labo r which is necessa ry for

its p r oduction .

Marx exp r esses the same idea in slightly dif

fer ent wo r ds and with a more narr ow connota
lD id R i a do T h P i n ip l
av c r f Po l it i l E o nomy nd T x
e r c es o ca c a a
t ion 18 17 C ha p I S t 1
,

a , , .
,
ec . .
72 T H E MARX IAN T H EO RY OF V AL U E

L abor then must be the cause and measure of

, ,

v alue But the measur e of labor is its dur ation

. .

Ther efo re the exchange values of commodities

,

a re dete r mined by the amount of labo r time in -

corp or a ted or mate r ialized in them But labor .

may be misdi rected Ther efor e the labor which

.
,
“ ”
cr eates value must be socially necessar y or ,

p roperly applied to the cr eation of utilities .

“
Thus Mar x arr ives at the conclusion th at : value
is determined by the socially nec essary labor
time that is required to p roduce an ar ticle under
the normal conditions of p r oduction and with the
aver age degr ee of skill and intensity p r evalent
”
at the time .
1

I mp orta nce of the T heory — Such is the c el e

b r a ted labo r cost theor y of value one of the
-
,

foundation ston es of the Ma r xian system .

O r th odox socialists ar e deeply conce r ned to p r ove

it tr ue for if it can be shown that all values a re
,

measure d by labor time or are p ropor tional to

-
,

the qu antity of labor us ed in p r oducing them it ,

must follow they think that labor is also the

, ,

cause or cr eator of values And if this is t rue . ,

the employer s and all the r est of the capitalist

class are nothing but par asit es and blo od
sucker s drawing nourishment fr om the p r o
,

du cers and giving nothing in r etu rn .

I t should be noted however in passing that

, , ,

C ap i t a l p 6
1
, . .
 T H E MARX IAN T H EO RY O F VAL UE 73

the Mar xians may b e wr ong in this chain of

r e ason ing ,for labor might b e the m easur e of
value but not the caus e or it might be the caus e ,

of value but not the measur e of it In fact now

, .
,

that the labor cost th eory is discr edited many

-
,

s ocialists say that it has no essential connection

with the p r oposition that labor is the chi ef factor
in the cr eation of wealth and values .

At fi r st glance the labor cost theory has the -

app ear ance of a self evident tr uth but the more -

,

one consid er s it the mo r e unsatisfactory and one

sid ed it app ear s Certai nl y it is not a gene r a l

.
,

law of value explaining the exchange r atios of

all things bought and sold for Marx himself ,

exp r essly excludes f r om the scope of his th e ory

cer tain things which by his own definition must , ,

b e classed as commodities .

F a tal E x cep tiona — The theory may p artially

explain the value of factory p r oducts and other
r ep r oducible goods but it certainl y does not
,

account for the value of l and particul arly u n ,

imp roved city lots Such land can b e exchanged

.

for cotton wheat corn hats silv er or gold and

, , , , ,

must th erefor e have some p r op er ty in common

with them all which is the caus e and measur e of
,

their value But it cannot be labor cost for

.
-
.

land is a gift of natur e .

T rue land woul d have no value if p eople did

,

not live and work in the n eighborhood but in so ,

7 44 T H E MARX IAN T H EO RY OF VAL UE

fa r as the particul ar land in qu estion is con

cerned no labo r time has be en appli ed to it and
,
-
,

soci ety which gives it a value stands to it in the

, ,

r elation o f consume r r athe r than o f p r oduc er .

M arx himself is con scious Of this diffi culty and

tri es to evade it by saying that land is not a com
modity and by the still mor e absur d statement
,
“
An obj ect may have a p rice without having
value ; for instance the p rice of uncultivated ,

land which is without value because no human

,
” 1
l ab or is incorpor ated in it .

The Marxian theory is equally incompetent to

account for the value of labor power itself which -
,

i s a commodity in so far as it is bought and sold

, ,

and stands with wheat silver and all other com , ,

modities in the infinite network of exchange re

l ations Marx says :. The valu e of labor power -

is determin ed as in the case o f eve ry other com

,

modity by the labor time necessary for the pr o

,
-

duction an d consequently also the repr oduction

,

o f this sp ecia l a r ticle— in other wor ds the v alue ,

of labor p ower is the va l ue o f the means o f sub

-

” 2
sistenc e of the labor e r .

But cost of subsistence whil e i t has its influence ,

on the ave r age wages of unskilled labor has little ,

to do with the wages of particular worker s of u n

usual attainment N ative ability the power and .
,

the will to work is the chief factor in the dete r ,

I C ap i ta l , p . 75 .
2 1 bid , p
. . 1 49 .
 T H E MARX I AN T H EO RY OF VA L UE 75

mination of earnings especially in the ca se of ,

men of talent and genius whose r ewar ds a re ,

usually out of all p r oportion to the cost of thei r

brin ing u p Marx t r i es to evade this difficul ty
g
-
.

b y gi ving a common but err oneous explanation

“
thus : A l l labor of a higher or more compli
ca ted char acter than ave r age labo r is exp endi

tur e of labor powe r of a more costly kind labor

-
,

power whose p r oduction has cost mor e time and

labor and which the refore has a higher value
, ,

than unskilled or simple labor power -

.
1

W here T heory C ol l a p ses The so alist .

theory of value fair ly collapses when it com es to

“
explain the value of intangible things such as
”
consci ence and honor which a re sometimes
bought and sold as when a citizen s ells his vote
, ,

an alde rman his conscience or a me rchant his ,

good name Cl early such intangibles as honor

.
, ,

infl uence good will t r ade mar ks fr anchises and

,
-
,
-
,

the like have exchangeable value but Mar x

, ,
“
asse rts that such things have a p ric e without
having a value the p rice in that case b eing, ,

imaginary like certa in quantities in mathe

,
”
maties .
2

’
D oubtl ess a politician s conscience may be
,

imaginary but he s eldom s ells it for imaginar y

,

gold and so with all intangibles that are bought

,

and sold They have a value in exchange not

.
,

1 C api ta l p 179
, . . I bid p 75 2 .
, . .
76 T H E MARX IAN T H EORY O F VA L UE

becau se of any labor cost of p r oduction but b e -

,

cause they are u s eful to the p eople who ar e will

ing to p ay the p rice .

T he F actor of S carcity — When we conside r .

material tangible commoditi es other than land ,

we find innumer able exceptions to the supposed

law that exchange value is mater ialized or
c rystallize d or congealed labor time Scar ce -
.

articles such as ol d coins stamps manuscr ipts

, , , ,

autogr aphs bir ds eggs fossils pictures statu

,
’
, , ,

a ry and the thousand and one ob j

, ects dear to the
heart o f collector s a re r ightly called commodi
,

ties although the re is no discover able r elation

,

betwe en thei r market value and their cost of

p r oduction as measur ed in labor time -
.

O f cour se such a r ticles a r e not r ep r oducibl e

,

by labor and it is said that Mar x never intended

,

his th eory to apply to them This only shows as .

,

Spargo a dmits that the theory is not all in

,

cl u siv e but str ictly li mi ted in its application

,
In .

other wor ds it is not a gen er al th eory o f value at

,

all but an attempt to explain the value of a

,

particular class of articles p r oduce d at a given ,

time an d place under special conditions and

, ,

with all the other factor s r em ai ning unchanged .

Sur ely with all these limitations and qu alifi ca

,

tions the S cope of the theory r api dl y app r oaches

the vanishing point .
 T H E MARX I AN T H E ORY O F VAL UE 77

T he F a ctor of S ocial U til ity — T he works o f

autho rs a,r tists and , inventor s must also b e ex ,

cluded becaus e they a r e not fr eely r ep r oducible

, ,

and the r e is no definite r elation b etween th eir

v alu e and the time sp ent in c reat ing the m A .

eat painte r ma ec eive for the w or k

g r y r

of a few w eeks or months while a me r e daub er ,

might sp end year s on a pictur e which his best

friends would not acc ept as a gift The incom .

petent one has not b een abl e to cr eate a work of

social utility so his time has b een w ast ed and has
,

no r elation to the value of the p r oduct S ocial .

utility th en is the p r ime factor in the determi

, ,

nation of value and labor cost is a matter of

,
-

secondar y impor tance .

M in e a n d F a r —
m C osta When at last we
come to commoditi es that are fre ely reprodu
cibl e and p r oduced under competitive conditions ,

we find that even h er e the labor cost th eory does -

not strictly apply T he valu e of gold and silver

.
,

for example has slight r elation to th ei r cost of

,

pr oduction becaus e o f the varying r ichn ess and

d epth of the or e deposits and for oth er r easons
, .

In some min es gold is p r oduced at a cost of $ 1 0

worth O f labor in othe r s $ 2 0 in oth er s $ 5 0 or
, ,

more and yet all of the m etal p r oduced at

, ,

various costs s ells at the same mint p r ice of

,

er ounc e
p .

E v ery farm er knows that the labor cost theory -

78 T H E MARX IAN T H EORY OF VA L U E

fails to explain the value of agricul tur al p r oduce .

O n the b est lands wheat may be gr own at a labor

cost of a bushel ; on p oor er lands at
or and yet the total supply is very

w
likely to be sold at which economists
“ ”
usually call the marginal cost This rule of .

varying costs applies to the p r oduction of all ra

mate rials : gr ain meat leather cotton wood
, , , , ,

sugar lumber ir on clay gold silver and the

, , , , , ,

r est because of the fact that land

, fr om which ,

they ar e all d er iv ed is limited in quantity and

,

dive r se in quality .

M anu factu red G ooda — Finally the val ue of ,

staple manufactured articles which Marx has ,

—
chiefly in min d such as shoes cotton and woolen ,

goods r efined sugar furnitur e steel r ails j ew

, , , ,

w
el ry is not d etermined chiefly by thei r labor
cost .

In the fir st place the value of the r a ma

,

teria l s o f which they a r e composed is not so

det ermin ed .

In the secon d place the l abor employed in p ro

,

duction varies greatly accor ding to the kind and

amount of land and machinery used the skill of ,

the worke r s the efficiency of the management

,
.

I n the thi r d place the value of manufactur ed

,

goods is not determined solely b y cost which ,

limits supply nor by utility which contr ols de

, ,

mand but by both of these factor s together In

,
.
 (

80 T H E MAR XI AN T H EO RY O F VAL UE

pl a c e in his system because he wished to ex ag ,

g er ate the importance of unskilled labor the ,

labor of the p roletariat I n the very fir st chap .

“
ter of Capita he says : N othing can have
value without being an O b j ect of utility If the .

thing is useless so is the la bor contained in it ;

,

the labor does not count as labor and therefore ,

” 1
creates no value .

This is a v ery significant admission quite in ,

consist ent with the basic contention of Marx that

l abor time an d that alone is the cause and
-
,
.
,

meas u r e of value If th er e can be no exchange

.

v alue with o ut utility th en utili ty must be the,

cause or a vital par t of the cause of value and ,

it must have something to do with the measur e

ment of value also .

In another place Marx says A useful

article has val ue only bec ause human l abor in the
V abstr act has been embodied in it ” 2
.

Apar t fr om the misapplic ation of the wor d

abstr act to something so concr ete as labor
time this stat ement is quite untrue as has been
, ,

shown in the nume r ous illustr ations given above .

The very r ever se of it is t rue and it should be ,

changed to r ead as follows : “

An article in
which labor has been emb odied has value only
”
because it is a us eful a rticle .

N ot all commo dities which cost l abor have

0 api t l p 8
1 a , . l bid p 5
.
z .
,
. .
 T H E MARX IAN T H EO RY O F VAL UE 81

value but all useful commodities have value if

, ,

th ey a re sufficiently limit ed in quantity Utility .

,

therefor e is more essential to value than labor

,

cost as in the case of land which has utility and

, ,

scarcity but no labor cost O f cour se the value

, .
,

of r ep r oducible commodities is related to thei r

labor cost though not in the di rect and exclusive
-
,

Marxian sense .

U til ity — S ocialists who lay chief st ress on cost

of p r oduction as the or igin and measur e of value ,

a re placing the car t befor e the ho r se A ll com .

m odities have one common p rop erty utility —

without which they would not b e commodities ,

for they would not be bought and sold Most .

commodities have anothe r common p r ope rty

—
labor cost which aids in the dete rmination of
value by limiting supply .

But labor is the means and utility or the , ,

powe r to satisfy human needs is the end of the ,

p r oductive p rocess and p r actically as well as

,

logically the end is mor e important than the

,

means It is utili ty that ar ous es d esir e and de

.

mand sets in motion the wheels of p roduction

, ,

and gives valu e to the land capital and labor , ,

which a re the means to the final end and purpose

o f economic activity .

S o it is utility that is the test of value and not y

,

the expenditure of a certain amount of labor

time The measur e of labor is not its dur ation
.
,
82 T H E MARX I AN T H EO RY OF VA L UE

but its effici ency and the measur e of efficien cy

,

is the quantity and quality of the output the ,

extent to which it minister s to human wants It .

is not time that counts but what is done in time, .

It is not cost that must be fir st considered but ,

theultimate goal — the welfar e of the human r ace .

—
Brain W ork Marx grudgingly admits the
unequal efliciency of labor as though he r ealized ,

that the adm ission was a denial of the theory .

He wrote : J ust as in society a gener al or a

“
,

banke r plays a gr eat part but m er e man on the , ,

other hand a ve ry shabby par t so her e with me re

, ,

human labor S killed labor counts o nl y as

.

simple labor intensified or r ather as mul tiplied , , ,

simple labor a given quantity of skilled being

,

consider ed equal to a greater quantity of simple

labor.
m "

If M ar x had followe d this line of thought he

would have seen that an incr ease in the efficiency
of labo r in a given industry whil e it gene r ally ,

increases the value of the total p roduct often , ,

w
if not usually decreas es the exchange value p er
,

article p roduced .

He would also have seen that as in ar a , ,

competent gener al is a host in himself so in the , ,

industrial army a gr eat captain of industry by

, ,

the powe r of his thought his imagination fo r e , ,

sight j udgment organization direction d eter

, , , ,

C p i ta l p 1 1 1 a , . .
 T H E MARX IAN T H EO RY OF VAL UE 83

mina tion cour age and incessant activity is the

, ,

dynamic center of indust rial life with a creative ,

for ce ou t of all p roportion to the dur ation of

effo rt and of gr eate r social value than thousands
,

of hour s of simple aver age labor time i ”

-
.

L a bor C ost T heory D iscr edited — Enlight .

ened socialists of the p r esent day being obliged ,

to abandon the strict Mar xian theory of value ,

qualify and explain it away until it has little re,

semblance to its original form Engels said that . v

w
the law of value was valid fr om ea rl y times down
to the fifteenth centu ry Untermann says it doe s
.

not wor k well no but will be m good going

,

o rder after the s ocial r evolution S omb art says .

it is not a fact of experience but a fact of thought .

Veblen says that Marx was not t rying to explain

exchange value at all but to int erp r et value in
, r
“ ”
te rms of the unfolding life of man in society .

O the r s like Kautsky insist that the Mar xian

, ,

th eory of value has nothing to do with socialism ,

and that it has no vital r elation to the oth er

Marxian doct rines especially the theory of
,

surplus value But as P r ofessor Skelton has

.
,

well shown Marx was t rying to give an ana l y

,

sis or examination of capitalism in or der to show

within it the conflict of opposing for ces and the ,

th eory of value was an ess ential part of that

analysis .

At any r ate Mar x himself thought the theory

,
84 T H E MARX IAN T H EO RY OF VALUE

important for he sai d :

, The recent scientific
discove ry that the p r oducts of labor so far as
,

th ey ar e values are but the mate rial exp ressions

,

o f the human labo r spent in th ei r p r oduction ,

marks an epoch in the d evelopment of the human

’
r a cef

Without d oub t a comm on economist migh t

accept the labor cos t theo ry of value without
-

going on to socialism but can the foll ower s of

'

Mar x den y so impor tant a part of their master s ’

“ ”
teaching an d s ti l l call themselves scientific
socialists C an they r ej ect the labor cost theory
? -

and still hold to the theory of surplus value If

?

so they must be taking surplus val u e on faith or

,

setting it upon a new fo undation .

 THE M AR X I A N LAW O F ,

I N C R E A SI N G MI S E RY

The R eve rend Thomas R ob ert Malthus in the ,

year 1 7 9 8 published an attack upon the utopian

,

socialism of the day entitl ed An Essay on the ,

P rinciple of P opulation and thus became the ,

godfath er of the celeb r ated or notorious th eory

that bear s his name T O be su re he did not
.
,

originate the th eory and Karl Mar x calls his

,

wor k a school boyi sh supe rficial plagi ary of D e

-

F oe Townshend Wallace etc

, , But to how , .

many is it given to c reate a new idea Even?

Marx might b e accus ed of borr owing id eas for ,

all of his distinctive doctr ines may b e fou nd in

w
the wr itings of his p r ed ecessor s although the ,

combination was the work of Marx alon e In the .

wor ds of the P reach er : Ther e is nothing ne

“

under the sun or as C haucer puts it

,

old f ld
F or ou t o f e m n ith
e es, a s e se ,

Co th hi n w o n f y t y
me al t s e e c r ro eer o ere,

A nd t f old bok in good f ith

ou o e es e

Com th l th i n w i n that m n l
e a s e e sc e ce e ere .

C ha
1 T h Pa l m nt f F o l
u cer, e r e e o u es .

85
86 MARX IAN L A w OF M I S E RY
P op ul ation says Malthus tends to increase
, ,

faster than the means of subsistence T he natu .

r a l r esour ces O f the ear th a re li mited but the r e ,

is no definite limit to the mul tiplication of p op u

lation oth er than the supply of food and the
other means of subsistence Therefor e unl ess .
,

the gr owth of population be ch ecked in some

way p over ty and mise ry will p revail in every
,

country This is the Malthusian theory of p op u

.

lation with its dismal shadow the ir on law of

, ,

wages for which R icardo usuall y gets the credit

,

-
or disc r edit .

L iving C osts D eter mine W ages The r ate of .

-

wages accor ding to this so called law is dete r

,
-
,

mined by the cost of l iving of the wor king class ,

the quantity of commodities nec essary to ke ep the

labor er s alive and enable th em to r aise families
to take thei r places after they are di sabled or
dead Wages it is said cannot p erman ently
.
, ,

fall below this limit for if th ey do the death r ate

,

will increase the marr iage r ate and the bi rth r ate
,

will d ecline and the wor king class will di m

, inish
in number s until wages ris e to thei r natur al level .

O n the other hand accor ding to this theory

, ,

wages cannot permanently exceed the subsistence

of the labor er and his family for if they do the , ,

marriage r ate and the bi rth rate will inc rease ,

the d eath r ate will decline and the working class

,

will increase in numbers until wages fall to th ei r

88 M ARX IAN L A W OF M I S E RY
d emands for the continu ance of life an d p r op a
” 1
g a tion .

In the C ommunist M anifesto Marx and E n ,

“
gels say : The aver age p rice of wage labor is the -

minimum wage i e that quantum of the means , . .

,

o f subsistence which is absolutely r equisite to

”
keep the labor er in bare exist ence as a lab or er .
2

An d again : The modern laborer instead of

“
,

w
r ising with the p r ogr ess of industr y sinks deepe r ,

and deeper b elow the conditions of existence of

his o n class He becomes a paup er and
.
,

pauperism develop s mor e r api dly than p op ul a

”
tion or wealth 3 .

“ ”
In Capital Mar x says that the value of
,

labor p ower is determined by the sum of the

-

m eans of subsist ence necessary for the p r oduc

” 4
tion of labor p ow er -
.

In another passage of the same work he says

In p r opor tion as capital accumulat es the lot ,

o f the labor er be his payment high or low must

, ,

gr ow wor se The law that always equ il ib riates

.

the r elative surplus population or industr ial r e

s erve ar my to the ext ent and ener gy of a ccu mu
lation establishes an accumul ation of misery
, ,

corr esponding with accumulation of capital A c .

cumulation of wealth at one pole is th er efor e at , ,

C i t d in En o
1 e M od n S o i l i m p 3 8 s r, er c a s

C omm n i t M n if t o p 32
. .
,

2 u s a es

I bi d p 2 9
. .
,
8

C ap i t l p 1 50
. . .
,
4 a . .
,
 MARXI AN L A W OF M I S E RY 89

the same time accumulation of mis ery agony of ,

toil slavery ignor ance b rutality mental d egr a

, , , ,

dation at the opposite pole A l ong with the

,
.

constantly diminishing number of the magnat es

w
of capital grows the mass of mis ery oppr ession , ,

”
slavery degr adation exploitation
, , .
1

M a re: T ists T heory of M al tha s — Marx it .

,

is t rue ridicul es the Malthusian theory of pop

,

u l ation It would be disastrous to socialist

.

th eory to admit it If population must increase

.

with ever y imp rovement in economic conditions ,

the real ization of the socialist idea " will onl y re

sult in gr eate r population and more hopel ess
mise ry Marx therefore r ej ects the th eory of
.
, ,

pop ul ation but accepts the ir on law of wages

, .

He denies the cause whil e affirming the e ffect .

The e ffect then must be due to some other

, ,

cause .

It is not says Marx absolute ove rpopulation

, ,

that dep resses wages but the very natur e of ,

capitalistic development which by the continual ,

intr oduction of machine ry and other imp roved

methods of p roduction cr eates a r elative surplus,

population an indust rial r es erve army the army

, ,

w
o f the unemployed who a r e willing to wor k for
,

any wages that wi ll save them from starvation .

“
T hus we have according to Marx
, a la of ,

I O api ta l , p 661, .
90 MARX IAN L A w OF M I SE RY
population peculiar to the capitalistic mode of

p roduction .

P essimism and O p timism of M a m — This .

variation of the ir on law is even mo r e pe ss imistic

than the views Of Malthus and R i car do N ot .

only may ther e be a pop ul ati on too great for the

r esour ces Of a count ry but the r e must always be
, ,

in every p r ogr essive countr y an active a rmy of ,

worke r s who r eceive star vation wages and a r e ,

serve army of the unemployed ever r eady to

step into thei r shoes .

Such is the celeb r ated law of increasing

“ ”
misery accor ding to which economic p r ogr ess
,

n ecessarily involves the pr ogressive degradation

o f the wo rking class and inc r easing e xploitation

by a diminishing number of capi talists It is one .

o f the foundation stones of the Marxian system

b ecause up on it is based the c ent r al doctrine the ,

th eory of surplus value and the socialists hope

,
’

o f app r oaching r evolution Fortunately it is

.
,

theoreticall y unsound and it is contra dict ed by

,

the facts of histor y .

S ocialists fr equently glorify the past especial ,

l y the fa r distant past of our p rimitive ancestor s

-
,

wh en ther e was neither business enterp rise nor ,

machiner y nor exploitation neither capitalists

, , ,

feudal lor ds nor slave owner s when people were ,

near to natur e and every man did what seemed

good in his own eyes They forget that in those
.
92 MARX IAN L A W OF M I S E RY
Filth poorness of living and the want O f linen
, , ,

made this horr ible diseas e former ly very common

in S cotland ; R ober t B r uce died of the l ep r osy ”
.
1

Similar conditions existed at the b eginn ing of

the seventeenth c entury In the year 1 6 1 5 a .

census was taken of the town of Sheffield show ,

ing that ou t of a population of no l ess

'

than 7 2 5 peop l e wer e unable to live without the

char ity of th ei r n eighbor s while 60 p er cent of ,
“
the r emai nd er w er e so poo r that a fortnight s ’

”
sickness would d rive them to beggary .
2

I n the year 1 6 8 8 it was calcul ated by Gr ego ry

King that ou t of England s total popul ation of ’

about a fourth wer e mor e or less de

p endent on par ochial r eli ef Wr iting of the con .

dition of a ffai r s on the eve of the Industr ial

R evoluti on Cunningham says : Th er e seems to
,

be abu ndant evid ence that the artisan o f a b u n

d red year s ago was less r egul ar in his wor k and ,

less ste ady in char act er than the skilled artisan of

the p r esent day The fir st intr oduction
.

of machine ry was accompa nied by many evils ,

but in so far as it tended towar d r egular habits

” 3
of daily work it has b een ev entually beneficial .

C hanges in the C ondition of W orkers — The

emin ent B ritish statistician S ir R ober t Gi ffen , ,

I
'

t
S cott, M i ns rel sy of the S c ott i sh B od r er Not e on the B al l a d
B on
.

of S ir H u gh L e l d
W nnin a
.

2 Cu gh m , op ci t , V ol II p 2 06, 11
i
. . .
. . .
,
3 I b d
,
Vol I I ,
. . pp
4 74 , 4 75
. .
 MARX IAN L A W OF M I S ERY 93

in 1 8 8 3 showed that the mon ey wages of B ritish

“
wor kmen had increas ed in 5 0 y ear s in most cas es
”
fr om 5 0 to 1 0 0 p er c ent while the cost of living,

had decreased exc ept in r egar d to m eat and rent

,
.

Anothe r authority M r A L Bowley has , . . .

,

shown that in the 3 0 year s ending 1 8 9 1 wages

, ,

in England incr eas ed from 1 5 to 7 6 p er cent ,

being an average inc rea se of 40 p er c ent .

In the 35 y ear s ending 1 8 9 5 according to ,

M ul hall the population of the United Kingdom

,

increas ed fr om to or 3 4

p er cent whil
, e in the same time th e total w ealth

increased from to
0 00 or 64 p er c ent and the w ealth p er head in
, ,

creas ed from to or 2 0 p er c ent .

If th en aver age wages have increased 40 p er

, ,

cent while aver age w ealth has incr eas ed only 2 0

,

p er cent the
, imp r ov ement of the wo r king classes
in Great B r itain in those year s mor e than kept
pace with the increas e in gen er al w ealth .

S imilar testimony is given by the w ell known -

socialists S idney and B eatrice Webb who in

, , ,
“ ”
thei r great work Industrial D emocr acy show
, ,

that fr om 1 8 5 0 to 1 89 6 the pur chasing power of

the wages of thr ee typical workmen in England
and Scotland m easured in bush els of wh eat in
, ,

c reas ed by 8 0 p er c ent 1 60 p er c ent and 2 5 0 p er

,

c ent r espectively In the Prefac e to Hutchins

.

and H arrison s History of Factory L egisla

’
94 MARX IAN L A W OF M I S E RY
tion wr itten in 1 9 1 0 M r Webb says : T he
, , .

L ancashir e cotton spinner once in the lowest ,

depths of social d egr adation now occupi es as re , ,

gards the general standar d of life of a W hole

tr ade perhap s the foremost p osition among
,
” 1
English wage earn er s -
.

P r ofessor A l fred Marshall in his Pr inciples ,

”
o f E conomics stat s that since
“
( 1 9 0 7 ) e 1 8 7 3 , ,

the standar d of living among the working

classes has been rising r apidly perhaps mor e ,

r apidly than at any oth er time in English histo ry ;

their household exp enditure measur ed in money , ,

has r emaine d about stationary and measur ed in , ,

” 2
goods has incr eased very fast
, .

Many other figu res could be given to show that

the condition of the working class in Englan d
’
dur ing the nineties an d up to the outb reak of ,

the Wo rld W ar in 1 9 1 4 was vastly better than ,

ever b efor e A ll the evid ence th er efor e flatly

.
, ,

“
contr adicts the so called l aw of increasing -

misery T rue imp rovement went on at a slower

.
,

r ate during the ear ly yea r s of the 2 oth century ,

b ecause of the W ell known tendency of wages to

-

l ag behin d rising p rices but even so the gains of , ,

w
the l atter half of the 1 9 th century were well
maintaine d an d pr ospects we re goo d when the
,

w
a r b egan .

I C i t d in To l
e nd R y S o i l i m p 286
er a a c a s
Ma h al l P in ip l f E onomi fi fth dit ion p 19 1
. .
, ,

2 rs r c es o c cs, e . .
, ,
96 M ARXI AN L A W OF M I S E RY
Material P r ogr ess of Wage E arne r s stat e that -
,

w
in Massachusetts in the y ear 1 67 2 carpente rs , ,

r eceived 3 3 cents a da y tailors 2 7 cents and , ,

common l aborer s 2 7 cents ithout board an d , ,

that when wheat was sel ling at 8 1 cents a bushel ,

corn at 4 8 cents and oats at 2 5 cents , .

“
The s ame author s show that the rise in r eal
wages or wages measured in pur ch a sing power
, ,

went on despite o ccasional interr uptions until

, ,

the b eginning of the 2 oth century F or every .

$ 7 0 wo r th o f goods that th e wo r ke r r eceived in

1 8 6 6 he r eceived $ 1 2 1 in 1 90 2 an incr e a se of 7 3 ,

1
er cent in 3 6 y ear s
p .

W I K ing s F indings W
. .
— I King in his
’
. . .
,

w
“
excellent book The Wealth and I ncome of the ,

P eople of the United S tates ”

gives a
se ries of inde x number s sho ing the purchasing
p ower of hourly wages in all industri es fr om
1 8 5 0 to 1 9 1 2 If the number . be taken to
’
indicate the p ur chasing power of an hour s
wages in the year 1 8 5 0 the pur chasing power ,

was in 1 8 60 in 1 8 70 in 1 8 8 0 , , ,

in 1 89 0 in 1 8 9 7
, in 1 900 1 1 0 in , ,

1 9 0 6 and 1 0 3 in
, Her e also as in the case , ,
“ ”
of Englan d an d othe r count ries the rise in r eal ,

wages during the early year s of the 20th centur y

was retar ded because Of the rise in the cost of
1 Adam nd S mn L bo P obl m C hap 13 pp 5 02 547
s a u er , a r r e s, .
,
.
-
.

2 W I K in g T h W a l t h nd I n o m
. .
, f t h P
e op l f the
e a c e o e e e o

Unit d S t t
e p 1 8 9 a es, . .
 MARX IAN L A W OF M I S E RY 97

living the increase of pop ul ation and other

,

causes .

O f cou r se the p r ogress of the wo rking class

,

is not to b e measured in wages alone as many ,

other cir cumstances must be considered The .

death r ate for example p er thousand per sons in

-
, , ,

England and Wales declined fr om , in the

year 1 8 5 0 to in the year 1 9 0 5 which is sur ely ,
“ ”
no evidence of incr easing mise ry .

The disappearance of ill ite racy too is worth , ,

consider ing ; also the d evelopment of public

parks playgrounds lib r aries baths and other
, , ,

signs of increasing well b eing -

.

N or is such p r ogr ess confin ed to England and

the United States It is found in all the other
.

capitalistic countr ies of the wor ld O nly in de .

cl ining count ries and in non capitalistic coun

,
-

tri es such as China India and Centr al A frica

, , ,

a re wages kept down to the bar e cost of living .

In such cou ntries it looks as though the law of

Malthus were in oper ation but in capita listic ,

countri es national wealth s eems to increas e fast er

“ ”
than population and th er e is no othe r law of
,

increasing misery which the working class has to

fear.

A dmissions of S ocial ists — I t might seem use

.

l ess to dilat e upon this wer e it not that socialist

,

“ ”
missionari e s still p r each the law o f inc reasing
98 MARX IAN L A W OF M I S E RY
mise ry as though th ey did not know that thei r
,

leader s had abandoned it or explained it away .

Kautsky said at the L iib eck Congress of 1 90 1

I nc reasing mise ry is to be unde r stood only as a
” 1
tendency and not as an unconditional tr uth
, .

In r eply to him D r D avid a p r ogressive

, .
,

“
socialist said : If one alt er s one s opini on one
,
’

should have the courage and str ength to say ,

‘
We made a mistake 2
.
’

In reply to both Kautsky and D avid Bebe" ,

asserted that Marx never taught the th eory of in

cr easing mis ery but only the doctrin e that the
,

gap between the wor king class and the rich class
today is greater than ever befor e and that for ,

this reason the class struggle is ever gr owing

more intense an d bitter .

Ma rx himself in 1 8 64 admitted the beneficial

, ,

e ffects of the English ten hour law thus cont r a -

,

dicting his own theor y of the inevitable and p r o

g r e ssiv e deg r adation of the wo rking class unde r

—
capitalism this whi le he was wr iting his great
“ ”
work C apital which appear ed in 1 8 67
, ,
.

Even B oudin abandons his guns when he says

T he p resent condition of the working class is
not m erely the result of the t end enci es of capi
ta l istic accumulation but of the t end encies of
,

C f En o
1 .M o d n S o i l i m pp 1 8 7 1 8 9
s r, er c a s ,
.
-
.

2 I bid .
100 MARX IAN L A W OF M I S E RY
tion his theo ry of wages his th eory of accum ula
, ,

tion of capital And if what is l eft be Mar xism

.

it is Mar xism with Mar x left ou t N ot only is .

w
his theor y shatter ed but what r ational fou nda
,

tion is ther e left for his vision and hope his goal ,

—
and inspi r ation the b reakdo n of c apitalism
and the social r evolution These conceptions of
?

Marx as well as his idea of the gen er al crisis are

,

bas ed upon the p rogressively incr easing mi sery

” 1
o f the wo r king class .

I nconsistency of S oci al ists — But why shoul d .

socialists wish to uphold the law of increasing

mise ry ? If the working class a re daily and
ye arly sinking de eper into the slough of misery
and degr adation what hope can ther e be of th eir
,

ever getting ou t of it It is freemen and not

?
,

slaves who most desir e the bl essings of liberty

, .

The working class of civilize d countries like p ro ,

s iv e people ev er ywh er e a r e neve r satisfied

g r e s , .

The mor e they have the mor e th ey want for , ,

desir es always outrun the means of satisfaction .

“
Kautsky says : We all agree that the emancipa
tion of the p r oletariat is to be expected not fr om ,

its incr easing decadence b ut fr om its gr owing ,

”
strength .

But if socialists having cease d to b elieve in in

,

c reasing mise ry take comfort in the imp r ove

w
,

m ent of the wo rking class much mor e should ,

S imkh vitch M a i m
I o , sus S o ci l i m p
r s 1 27
ver a s ,
. .
 MARX IAN OF :w 0:
’

L A W M rs
E
RY ”
1 1

those be encour aged who hope that indust rial

evolution will b ring about not the destr uction Of
,

p rivate p r operty and p rivate enterp ris e but the ,

continual an d b enefi cent utilization of thos e

powerful forces which have had so much to do
,

with the cr eation of mod ern civilization .

 TH E M AR X I A N THE ORY O F
S URPL US VAL UE

T he theor y of surplus value is a combination

or synthesis of the labo r cost theo r y of value and
-

”
the law of incr easing mise ry It is ther efore
.
, ,

the thi r d link in the chain of argument designed

to p r ove that capitalism is a system of exploita
tion or r obbery and has within it the seeds of
its own destruction chiefly because of the class
,

struggle the r eby eng ende r ed .

It is the wor king class of cour se that is sup

, ,

p osed to be exploited and this includes all em

,

l
p y o ees u,nskill e d and ski l l ed ha r d handed, and -

soft handed working with hand and b r ain for

-
, ,

wages and salar ies Y et Ma rx usua ll y se ems to

.

“ ”
have in mind unskilled aver age labor furnish ed ,

“
b y the p r ol etar iat who have nothing to lose
,
”
but thei r chains .They are the chief victims of
the capitalists to whom they sell thei r sole pos
,

session thei r labor and always at a for ced sale

, ,
.

“
This is his definition of labor powe r : By labor
power or capacity for labor is to be under stood
the aggregate of those menta l an d physical
102
1 04 MARX IAN T H EORY OF S U RPL U S VAL UE

of hours of socially necessary labor time em -

ployed in th ei r p r oduction Mor eover labor .

,
“
power Marx says has the peculiar p r operty of
, ,

being a sour ce not only of value but of mor e ,

”
value than it has itself The employer thus has
.

the great advantage of buying labor power at -

its value and yet s elling a p r oduct the value of

which is much gr eater p r obably two or thr ee ,

times as gr eat .

L a bor a nd C ap ital — The labor day therefor e , ,

”
is composed of two par ts : necessary labor time -
,

in which the laborer c reates value enough for

“ ”
subsistence wages and surplus labo r time in
,
-

which surplus value is cr eated The labor er like .

,

the ser f of feudal times wor ks par t of the time , ,

say five hour s for himself and the r est of the

, ,

day for his master the r obbe r bar on of cap

,

ital ism .

employer s capital too is compose d of

T he
’
, ,
“
two p ar ts : variable capital consisting of ,

w
“
money or goods paid to labor ; and constant
”
capital consisting chi efly of b u ildings ma
, ,

chinery an d r a mat erials N ow since surplus .

,

value is derived fr om the exploitation of living

labor it follows that it must be p r oportional to
,

the quantity of var iabl e capital used in the busi

w
ness and not to the quantity of constant capital
,
.

C onstant capital says Marx m er ely c r eates its

, ,

o n val u e because it is the p r oduct of past labor

, ,
 MARX IAN T H E ORY OF S U RPL U S VAL UE 105

wh ereas living labor onl y has the peculiar

”
power of c reating surplus value .

Y et th er e may be in the same business anothe r

manufacture r who with a bette r plant employs
, ,

onl y 5 0 laborer s at a cost of p er month ,

spends another o n account of sup erio r

equipm ent but mak es the same p r ofit of

, .

thr ough a totally di fferent a rr angement or com

position of his capital In othe r words a given
.
,

capital could be invested so as to use much labo r

a nd littl e machine r y or little labor and much
,

machinery and might yield the same rate of

,

p rofit on the total capital employed although it ,

would p r obably yi eld a higher r ate of p r ofit than

the old fashioned conce rn
-
.

What then becomes of the theory of value if

, ,

p rofits t end to be an ave r age r eturn upon the

‘

whole capital invested instead of a r eturn p ro

,

portional to the amount of variable capital only ,

or to the numb er of labor e r s di rectly employ ed ?

O bviously in the fir st case the r ate of exploita

,

tion is 1 0 0 p er cent and in the second case 200

,

p er c ent ; that is to sa y that in the s econd cas e 5 0

lab orer s create as much surplus value as the oth er

1 0 0 although they all w ere p r esumably m en of
, , ,

average labor power T o the o r dinar y mind it

.

looks as though half of the p rofits in the s econd

cas e w er e du e to the employer s intelligenc e but ’

Mar x could not admit this with out abandoning

106 MARX IAN T H EORY OF S U RPL U S VAL UE

his theory that all value is created by labor alone .

M a rx s C el ebra ted P u zzl e

’
— This is the cele
b ra ted puzzle suggested by Mar x in the fir st v ol
“ ”
u me of Capital and which was to be explained
in the lat er volumes In the year 1 8 8 5 two y ear s .
,

aft er the death of Marx F riedrich Engels chal ,

“
lenged his critics to : show how an equ al av er
age r ate of p r ofit can and must come about not ,

o nly without a violation of the law of value but ,

” 1
by r eason of it .

The thir d volume of C apital appea red in the

year 1 89 4 when orthodox Ma rxians wer e su r
,

p rised and disconcer ted to find that Marx a d

mitted that commoditi es in actual ci r culation ex
change not at th ei r value but in accor dance with
, ,
“ ”
thei r p r ice of p r oduction that is cost p ric e , ,

w
plus the aver age r ate of p r ofit This is the .

“ ”
great contradiction pointed ou t by B O hm
B a erk and othe r c ritics and it is evident that ,

Mar x finding his two theories quarr eling with

,

one anothe r and W ishing to save the th eory of

,

surplus value th r ew the labor cost theory over

,
-

boar d .

Without going into the d isputes and hair

splittings that have center ed about this notorious
puzzle it must b e evident to any business man
,

who consid ers the matt er that the p r ofits of b r ick

Ba
1

w
C p it l V l I I
a

er ,
a
k Ka l M a
P fa b y F i d i h Eng l C f B ohm
nd th C l o
,

r
f H i
o
S y
.

t m p 2
ra: a5
,
re ce
e se o
r e r c

s s e
e s

,
.

. .
.
1 08 MARX IAN T H EO RY OF S U RPL U S VAL UE

bined with abundance of capital both var iable ,

and constant .

C omm er cia l C ap ita l — I t should be not ed in ,

passing that the theo ry of sur plus value quite

,

fails to explain the origin and natur e of commer

cia l capital as Ma r x hims elf admits
, R eferring .

to a t r ansaction in which a m er chant buys goods

for $ 1 00 and sells them for $ 1 1 0 Marx say s ,
“
T his increment or excess ove r the original valu e
”
I cal l surplus value
1
but he is unable to e xplain
,

how the surplus value in this case is cr eated , , ,

except by suggesting that a two fol d advantage -

over both buyer and seller is gained by the mer

“
chant who par asitically shoves himself in b e
,
” 2
tween them .

Wh en Mar x says in e ffect that merchants are , ,

thieves he ignores the imp ortant social servic e

,

which they r ender in the c reation of time and

place utilities In fact the merchant is a p ro
.
,

du cer as t rul y as the farmer the mine r the , ,

fish erman or the manufacturer for the p r ocess

, ,

o f p r oduction is not completed u ntil the goods

a re in the hands of the final consu mler As .

“
though quite unaware of this Mar x says : If ,

commodities or commo dities and money of equa l ,

exchange value and consequently equivalents

-
, ,

a re exchanged it is plain that no one abst r acts

,

mor e valu e fr om than he thr ows into ci rculation, , .

1 C ap i t l p 128
a , . . U M 61 4 1 .
, .
 M ARXI AN T H E ORY OF S U RPL U S VAL U E 10 9

w
Th er e is no c reation of surplus value Tur n and
twist them as e may the fact remains unalte red
,

If equival ents are exchanged no surplus v alue ,

.

r esults and if non equivalents a re exchanged

,
-
,

still no surplus value C ir culation or the ex .

,

change O f commodities b egets no value , .

N or can the th eori es of Ma rx explain the

natur e of banking nor the creative powe r of
,

credit To him the making of loans and the tak

.

ing of int er est hav e nothing to do with the

c reation of value except in that they involve
,

taking what othe rs have p r oduc ed He even .

quotes with app r oval the ancient err or of the

Greek philosophe r Ar istotl e who held that the ,

taking of int erest unlike the rent of land and

,

the incr eas e of cattle or sh eep was contrary to ,

natu r e b ecause money was barren .

A ll this confusion of thought evidently pro

ceeds fr om the basic assumption of Ma r x that

all valu es are mate rializ ed or congealed or

crystallized labor time fr om which it is inferr ed
-
,

that capitalists and employer s c reate nothing .

Many socialists admit that the basic assumption

w
is fals e yet still hold to the opinion that capital
,

ism with exploitation as its ruling p rincipl e con

, ,

tains within it the se eds of its o n destruction .

Unl ess the wish is fath er to the thought such an ,

opinion lacking sci entific basis is p r obably t r ace

, ,

C api t l p 14 1
1 a , . .
110 M A Rx I A N T H E ORY O F S U R PL US VAL UE

able to discont ent arising fr om the unequal dis

tribu tion of wealth .

fl y -

[ D istribu tion of W ea l th C er tainly th e .

,

wealth of the wo rld is not equally divided and ,

socialists ar e quick to infer that a distribution

so unequal must be inequitable as well P r o .

“
fessor W I King in The Wealth and Income
. .
,

of the P eopl e of the Unit ed Stat es

”

estimates that the richest 2 p er cent of the peopl e

of Wisconsin in the y ea r 1 9 00 owned 5 7 r c ent
p e

of the total wealth and that in the United King ,

dom F r ance and P r ussia in the year 1 9 0 9 the

, , ,

corr esponding figur es were 7 1 p er cent 60 p er ,

cent and 5 9 p er cent r espectively D oubtless

, , .
,

the wealth of all capitalistic a nd most non capi -

”
ta l istic count ries is highly conc ent r ated
1
.

F o rtunatel y the incomes of the p eople which

, ,

cont r ol thei r expenditur e are mor e evenly dis ,

tr ibute d I n the same b ook P r ofesso r zK ing

.

estimates that in the year 1 9 1 0 the total incom e

of the people Of the United States was in r ound ,

numb er s , of which wages and

salaries amounted to or

p e r cent while inte

, r est was p er cent r ent ,

p er c ent and business p r ofits dist r ibuted and ,

u ndist ributed w er e p e r,ce nt .

This is a marked imp rovement o ver the year

1 8 5 0 when the sha r e of wages and salari es was
,

1 K ing , op . ci t
.
, pp.79 ,
1 12 MARXIAN T H EO RY OF S URPL U S VAL UE
says Recent availab le figure s for
eight large A m er ican indust ri es employing over ,

three million labore r s give to capital a r eturn in

,

dividends and inte r est of and to

labor in salaries and wages of a
t ota l income of of which the

shar e of labor is sixty one p er cent and that of

-
,

capital thirty nine p er cent That these figur es

-
.

ar e typical of the whole field of Ame rican in

” 1
du stry is questionable .

The most r ecent figur es on this ect a re

tho se of Pr ofessor F riday of the sity ,

of Michiga n in P r ofits Wages and Prices

“
, ,
”

base d on the United States c ensus re

ports in which he states that the employe es of
,

mining manufacturing r ail road and public util

, ,

ity corpor ations in the year 1 9 1 3 r eceived

“ ”
er cent of the value added by these indust r ies
p ,

while p er cent went in taxes p er c ent in ,

inter est and , p er cent in di vidends and su r

plus P r ofessor Fr iday says : The as se rtion so

.
“

frequently made nowadays that only 20 or 2 5

p er cent of the nation s output
’
goes to the labo rer
” 2
as wages has clearly no foundation in fact .

A typical exagger ation of the degree of ex “

”
ploitation is giv en by the w ell known B r itish -

“
socialist H M Hyndman in The Economics
,
. .
,

1C o l mb i Uni
u a i ty S t di V l L I I N 2 p 44
v er s u es, o o

D avi d F i day P ofit W g nd P i p 124

. . .
.
, ,

2 r r s, a es a r ces, . .
,
 MARXI AN T H E ORY OF S U RPL U S VAL UE 1 13

of Sociali sm H e says : The worker ,

for every hou r he works for himself works th ree ,

or four for the ben efit of othe r people who may

”
or may not do any us eful social wo r k at all
1
.

C onditions in the United K ingdom — B ritish

as well as American statistics absolutely cont r a
dict this and similar statements The C en sus of .

Industr ial P r oduction o f the United Kingdom

( 1 9 0 7 ) as analyz e d by P r of esso r A L B owley . .
,

shows that out of a net p roduction valued at

,

wages and salari es amounted to

dep reciation and tax es absorb ed
and the shar e of capital in rents , ,

r oyalties and p r ofits was less than

Thus for eve ry

, going to capital labor ,

r eceived about a dist ribution quite the re

2
verse O f that imagin ed by M r Hyndman . .

Such figur es as thes e too a re quite at variance

, ,

with the vi ews of singl e tax er s of the school of -

H enry Geor ge who claim that all the benefit s

,

of p r ogr ess a r e abso r bed by the land own er P ro .

fessor King s figu res show that in the y ear 1 9 1 0

’

only c ent of the national income was

p er

taken in rent and this chi efly by the small land

,

own er s so common in the Unit ed States In the .

United Kingdom also wh ere large estates are , ,

the rul e the portion of the national income going

,

l H yndm n T h E ono mi
a f S o ia l i m p 85
e c cs o c s
k S o i l R fo m p 203
.
, , .

2 M ll a oc , c a e r , . .
 MARX IAN T H EORY OF S U RPL U S VAL UE
'

1 14

to r ent is r elatively small M r W H M al l ock

. . . .
,

in S ocial R eform ( 1 9 1 4 ) says : In the y ear

“ ” “

1 8 0 1 the land r ent of England and Wal es

-

amount ed to 2 0 p er cent of a total income of

T O day out of a total income of
-

mor e than it bar ely amounts to

as much as 4 p er c ent .

T he E fi ect of S a ving Finally in estimating

.
-
,

the actual consumabl e income of the capitalist

class a consider able deduction shoul d be made
,

from their money income on account of cor por ate f

and p er sonal savings This par t of income in

.
,

st ead of b eing enj oyed by the owne r s is saved ,

and invested and constitutes a sort of r evolving

,

fund most of which go es to labor P rofessor

, .

King makes a conser vative estimate of

as the national savi ng for the year 1 9 1 0 .

w
P r ofessor Friday says that the annual savings
of England and Ge rmany w ere g ene r ally esti

mat ed at each befor e the ar ,

and he states that the corp or ate savings of the

United States wer e thr ee fourths of this amount
-
.

If to these co rpor ate savings b e added per sonal

savings ou t of distr ibute d income the total is ,

p r obably in excess of the savings of England or

G ermany notwithstanding the fact that A m eri
,

cans both r ich and poo r are most imp rovident

, ,

p eople P ar t of th ei r savings of cour se come

.
, ,

fr om wages and salaries although most of the

,
116 MARX IAN T H EORY O F S U RPL U S VAL UE

d ead l abor that v amp irel ike lives by sucki ng

, , ,
” 1
living labor .

A r ough classification like this may easily l ead

to false conclusions if one thus assum es that all
,

capital is owned by capitalists and that all labo r

is done by worker s of the p r op ertyless class In .

fact thousands an d even millions of American

,

laborer s have modest savings invested in some

p r oductive way : a hous e a piece of land a small , ,

mor tgage or bond an insur anc e policy a de

, ,

p osit in a savings bank The insecurity of th eir .

position is due to the fact that they have so littl e

capital and are so much dependent upon a single
,

—
sour ce of income the la bor of th eir hands .

Statistics of savings bank s building and loan ,

associations and insur ance companies while th ey ,

do not separ ate the holdings of wage earner s -

from those of lar ge capitalists indicate the exist ,

ence Of a large number of small p r operty owner s .

F or example in they ear 1 9 1 8 the r e w er e no less

,

than dep ositor s in the savings banks

of the Unite d States and their aggr egate de
,

p osits amounted to In the year

1 9 1 7 the r e we r e member s of building
and loan associations the total assets of which,

amounte d to In the same year

ther e were life insur ance polici es in
force and the total assets of the comp anies con
,

I C
p i t l ( S onn n h in ) p 2 16
a a e sc e , .
,
 MARX IAN T H EO RY O F S U RPL U S VAL UE 1 17

c ern ed wer e However the to ,

tal p r ope rty holdings of the working class are

not la rge for accor ding to King the poor er 65
, , ,

p er c ent of the population O f Wisconsin in the

year 1 9 00 owned but p er cent o f the total

w
w ealth of the state .
2

T he C ap italist C l as s — There are many labor

er s ho a r e capitalists though in a small way , ,

and it is equally t ru e that the re are many capital

ists who a r e wo rker s and creator s of wealth .
.

C apitalists ar e of two classes : those who ar e a c

tiv el y engaged in business and those who have ,

reti red fr om business or hav e neve r ente re d it .

T he latter class is composed of administr ator s of

estates and b enevolent endowments r etir ed busi ,

ness men and men of leisur e widows orphans , , ,

p rofessional p eople and in gener al people of , , ,

w
the middle class who owning more or less , ,

capital and unable or unwilling to manage it

,

p r ofitably put it into safe investments at l o

,
:

r ates O f inte r est .

w
The former class on the other han d is made , ,

up of active capitalists young men and men in ,

the p rime of life using thei r o n capital and that

,

O f oth er s in the managem ent and p r omotion of

ente rp r ises O l d and new taking all the r isks of ,

business guar anteeing inte r est to the bondholder

,

S t t i t i a l A b t a t f th U S
1 a s c 19 18 s r c o e . .
, .

K ing p i t p 79
2
, o . c .
, . .
118 MARX IAN T H E ORY O E S U RPL U S VAL UE

and wages to the laborer bearing the los ses that ,

occur and taking to thems elves the lion s shar e

,
’

o f the p r ofits Fa rmer s are men of this class ; so

.

also are manufacture r s and mer chants banker s ,

and b r oker s and the small but influential class

,

o f people who cont r ol the r ailways telegr aph ,

companies and oth er gr eat business corpor ations

, .

Accor ding to King these p eople togethe r , ,

with the stockholder s who back them up and ,

shar e the r isk received in the y ear 1 9 1 0 about

,

and the land owner s perhaps the ,

l east active of all r ec eived onl y ,

ou t of the total national income of about

H O Wc an it be said that the active business

men of the country do no work The work that
?

they do is both d ifficult and impor tant r equ ir ,

ing ceaseless activity gr eat str ength of b ody an d

,

mind and with some minor exc eptions p r omot

, , ,

ing the mater ial welfar e of soci ety in a very high

degree Under competitive conditions which
.
,

Mar x assumes neither the labor er s nor the con

,

sumer s are exploited by them for wages rise an d ,

p rices fall while new fi elds of l abor are opene d

,

up new an d va ri ed p r oducts are created an d

, ,

u nd er such leade rship the country is able to main

tain a large a nd increasing population .

Every community can point to a few men of

this kind to whom in large measur e its p ros
, , ,
1 20 MARX IAN T H E ORY O F S U RPL U S VALUE

While a p olicy of l et alon e has -

its defects an effort to r educ e p r ofits and contr ol

,

p r ices in any dr astic way might easily p r oduce

e ffects the v er y opposite of those intend ed C er .

ta inl y such action by the gove r nment of any

,

great expor ting country like England woul d in

, ,

all p r obability have the most dis a str ous effects .

R ent I nterest a nd P r ofits

,
— S o it must be a d
mitted that active capitalists as a class a r e not
, ,

par asites and that the p r ofits of business under

, ,

comp etitiv e conditions a re the earnings Of busi

,

n ess men and not a surplus valu e stol en fr om

,

the p roletariat But what must one think of the

.

idle capitalists : landowner s bondholder s and,

mor tgagor s who do no wor k at all but m er ely

, ,

l end thei r p r op er ty to active capitalists who use ,

it p r oductively and r etur n to the own er s a part

of the p r oduct in the for m o f r ent or int erest ?

Sur ely h er e is a class of exploiter s and par asites ,

useless and even inj urious to soci ety reaping ,

wher e th ey hav e not sown and gathering wh er e

they hav e not str awed
P lausible as this line of reasoning is it over ,

l ooks the fact that the taking of inte r est is in

separ ably connected with the institution of p ri
vat e p r ope rty The use of p roper ty for a given
.

time is something which has valu e in exchange .

A ctive capitali sts ar e glad to get it expecting to

,

u se it so as to ea r n the stipulated inter est and a

 MARX IAN T H E ORY O F S U RPL U S VAL UE 1 21

net p r ofit b esides L abor er s a re not exploited

.
,

for the gr eat er the accumulation and investment

of capital the low er the r ate of inte rest the ,

great er the p r oduct and the high er wages will be .

Mor eover the paym ent of int erest encou rages

,

savings and investment the b enefits of which ,

acc rue to the whol e community and chiefly to ,

the labore r s thems elves .

There is in fact no r eason why the owner s of

, ,

p roperty should lend it W ithout int erest that is

not at the sam e tim e a reason why th ey should
give it all away without equival ent or consid er a
tion If the taking of inte rest is robb ery the
.
,

whole institution of p rivate p r op erty is r obb ery ,

and that is exactly what the socialists say .

“
Pr op erty is th eft says P r oudhon and if he
, ,

is right the taking of int erest is th eft also But

, .

if he is mi staken and p rivate p r operty is socially

,

b eneficial th en he who lends his mon ey at inter est

,

is no more a thi ef than he who r ec eives $ 1 00 for

an acr e of land or $ 1 for a bush el of potatoes .

M r Edwar d F Adams of S an F r ancisco

. .
, ,

puts the case very strongly and j ustly thus

T he accumulating man is ess ential to social sav
ing S ocial saving is essential to the support of
.

an increasing population Th er efore socialism .

,

by eliminating the capitalist would make life

” 1
impossible to many who now live .

1Edwa d F Adam T h I nh ma n/
r i ty f S o ia l i m 1913
. s, e u o c s , .
1 22 MAR X IAN T H EORY OF S U RPL U S VA L U E

While defending p r ivate p rope rty with the ,

consequent taking of r ent inter est and p r ofits

, ,

an d asserting that the essential featur e of busi

ness activity is not exploitation but fai r exchange
of mate rial things and pe r sonal se r vices it wo uld ,

be absur d to say that ther e are no abuses con

w
nected with capitalism no exploitation r obbe ry
, , ,

par asitism nor any opp r ession of man by man

, .

T o S ides to the P ictu re — Wh er e the re is so

much smoke ther e must surely be mor e or l ess
fir e
. L aborer s complain of low wages long ,

ho ur s and fr equ ent unemployment Far mer s

, .

say that they a re r obbed at ev ery turn by r ail

r oads ,banker s gr ain dealer s mill er s packer s
, , , ,

and commission mer chants The so called mid .

-

dle class of the cities finding it incr easingly

,

difficult to m ake ends meet cry ou t against ,

“ ”
the p rofi teering of landlor ds mer chants and ,
“ ”
tru stifi ed manufactu re r s M anil fa ctu r er s and
.

merchants thems elves complain of exc essive r ail

way r ates cut th roat competition and confi sca
,
-

tory taxation Investor s denounce unscrupulou s

.

p r omoter s who by lying devices sell worthless

, , ,

“ ”
securities or
, fr om the milk of p romising
,

enterp rises skim off the cream of the p rofits and

.
,

add much water besides .

Pr ofessors of political economy even usually , ,

content to take the wor ld as it is for bett er or ,

wor se are obliged to admit that all is not w ell

,
 MARX I AN T H EORY OF S U RPL U S VA L E
’

1 24 U

T he B enefits of C a p italism — Capitalism has

.

be en the chief cause of the vast imp rovement

in social conditions that has made the 1 9 th
century notable in the history of mankind It .

has explored and settled the wilde rness has im ,

p r oved land and developed mines It has built

, .

r oads b ridg es and canals It has unified the

, .

wor l d by steamships r ailroads and tel egraph

,

l ines I t has built gr eat cities whe re millions of

.

peop le are fe d clothed and sheltered in a degr ee

,

o f comfo r t unknown to the a r istoc r ats of fo r me r

times It has c reated schools colleges lib rar ies

.
, , ,

hospitals par ks playgr ounds and a thousand

, , ,

agencies for the b etter ment of social conditions .

C apitalism has incr eased wages dec r ease d ,

hour s and imp r oved conditions of labor in many

ways It has gr eatly r educed the death r ate
.
-
,

w
thus incr easing the ave r age dur ation of human
li fe I t has imp r ove d mor ality abolish ed famine
.
,

and pestilence and mitigated the horr or s of ar

, .

It has elevated the wor king class to the level of

the middle class of two hundr ed year s ago an d ,

the middle class it has r aised to the leve l of the

nobles an d p rinces of those days .

The count ri es whe re capitalism has most p re

vailed are the countr ies whe r e the laboring man
r eceives the high est wages an d maintains the

high est standar d of living T he countries wher e

.

capitalism has done least such as China India

, ,
 MARX IAN T H EO RY OF S U RPL US VAL UE 1 25

and Russia a re the countr ies wher e wages are

,

lowest where the laboring man is ever on the

,

ve rge of star vation and wh er e he is most exploit

,

ed by the merchant the mon ey l ender and the,

gover nment offi cial .

Capitalism with all its faults has d one gr eat

, ,

things for the w estern wo rld and will do still

m
,

ore unless the social revolutionists r unning

, ,

amuck succ eed in b r eaking up the syst em

, If .

they do there will b e no land own er s no capi

, ,

tal ists no business men n eith er r ent int er est

, , , ,

p rofits nor surplus value of any oth er kind T he

, .

ol d economic o r d er the p r oduct of centu r ies of

,

industr ial evolution will be gone and the p r ole

, ,

tariat will set its elf to the laborious slow an d ,

p ainful task of c reating a new social order ou t

of the ruins of the old Whil e this wo rk of r econ
.

struction is going on doubtless millions of people

,

will die of starvation but as the revolutionists , ,

would say what wi l l that matter in a thousan d

,

year s ?

If on the othe r hand the working class listen s

, ,

to couns els of mod er ation and p rudence they ,

will refu se to destr oy what they may not be abl e

to build again Th ey will watch and wait for the
.

w
outcome of the gr eat Russian exp eriment an d ,

for the r esults of governmental and co op er ative -

effo r t in th ei r o n countr i es If government s .

and co op er ative soci eti es show th emselves able to

-
126 MARXI AN T H EO RY OF S U RPL U S VAL UE

comp ete with p rivate enterp rise in p roducing

b ette r r esults at a lower cost then these associa
,

tions contr olled no doubt by the working class

, , , ,

will possess the field by vi rtue of super ior effi

,

ciency and the socialist ideal will be r ealized by

,

a p r oc ess of slow and continuous evolution .

But if not capitalism will continue to exist

, ,

and the wor king class will find it to their a dv an

tage to p reserve and fost er it while at the same
,

time doing th ei r utmost to r emove abuses and to

secur e as large a shar e in the j oint p r oduct as
they can without inj ury to the industrial system
o f which they a re a par t . T he wo r king class no
,

longer the exploited will p r ot ect and cherish

,

capitalism as th ey would a cow for its milk or ,

the fabled goose for its golden eggs .

128 S O C IAL I S T E C ONO MI C S OF MA C H I NE RY

ing machine an d a host of other labor saving

,
-

machines with innumer able methods p rocesses

, , ,

devices and syst ems of organization clos ely con

nected the r ewith Whe rever possible and p r ofit
.

ab l e machines are used instead of men and it

, ,

almost looks as though the time wer e coming

when human labor would be no longer n eeded

w
an d machin e owning c apitalists would poss ess
-

the ear th
M a rms Vie s on M achi nery —
.

O r tho d o x so
’
~
.

cia lists p r ofess th emselves unabl e to see any

benefit to the laboring class arising fr om the use
of machine r y so long as it r emains in p rivate
,

hands Thei r views are substantially the same as

.

those of Mar x as expounded in the fir st volume

“ ” 1
of C apital and may be stat ed as follows :
,

Machin er y inc r eases the p r oduct of in

( )
1
du stry but the surplus goes to the employer in
,

the form of larger p r ofits and not to the laborer

as higher wages Wages ar e determin ed by the
.

cost of subsistence of the wo rking class and no t

b y the pr oductivity of thei r labor ; ther efor e to ,

incr ease the p r oduct of industr y is to increase

exploitation without imp r oving the condition of
the working class Mar x says : “
. L ike every
other incr ease in the p r oductiveness of labor ,

machinery is int ended to ch eap en commodities ,

an d by shor tening that por tion of the working

,

C p i ta l P a t I V
1 a ,
r .
 S O C IALI S T E C ON OMI C S OF MA C H I NE RY 1 29

day in which the labo rer wo rks for hims elf to ,

lengthen the oth er portion that he gives without ,

an equival ent to the capitalist In short it

, .
,

is a means for p roducing su rplus value 1

w
Again wages a re paid ou t of variable
,
”
capital consisting of food clothing shelte r
, , , ,

and oth er consumable goods N o to increase .

,
”
machine ry is to multiply constant capita l ,

which cannot be used in payment of wage s ,

while va riabl e capital r elatively declines If .

,

then the fund ou t of which wages are paid

,

r elativ ely d ecr eas es while the wo rking p O p u l a

,

tion goes on increasing as women and children ,

a r e th rown on the labo r ma rket it is clear that ,

wages p er worker must fall and only the toil ,

o f sever al memb er s of his family can save the

laborer fr om d estruction .

( )
2 Machine r y constantly d i spl a ces l abo r ,

creating a vast numb er of unemployed worker s ,

“ ”
the indust rial rese rve a rmy whose despe rate ,

struggle for work dep resses the wages of the

emfl oyed thus inc r easing the m iser y and deg
,

r a dation of the whole wor king class and r ec ruit ,

ing the ranks of paupe rs and c riminals With .

r ega r d to the int r oduction of the powe r loom ,

“
Mar x says : History disclos es no t ragedy more
horribl e than the gradual e xtinction of the han d
”
l oom weaver s .
2

lC p i t l p 365
a a ,
. I b id p 4 3 1
.
2 .
, . .
1 30 S O C I ALI S T E C O N OMI C S OF MA C H I NE RY

He thinks too that capitalists wish to perp et

, ,

uate this fearful condition of a ffai r s in o r d er

that they may have abundanc e of ch eap labor .

“
He says again : The whole form Of the move
ment of mode r n industry depends upon the
constant tr ansfor mation of a par t Of the labor
ing population into unemployed or half em ,
-

”
ployed hands .

“
( )
3 Machine r y says Ma r,x I S the sur est ,
”
means of length ening the working day since it ,

is unp r oductive while idle and the capitalist ,

natur ally desi r es to keep such expensive equip

m ent working all the time Machine ry also in .

cr eases the intensity of labor thus r educing ,

nec essar y labor time or the time ne eded to p r o

-
,

duce the labor er s means of subsistence and in

’
,

cr easing surplus labor time and the p r oduct of

-

it which is sur plus value

, .

( )
4 Machine r y is the chief cause of the ex
t r eme specialization of labor which makes a man ,

the slave of a machin e increases the monotony ,

of labo r and has a narr owing influence on the

,

laborer both physically and mentally

,
.

( )
5 Machine r y by r educing
, the impo r tance

o f muscular pow er mak es possible the employ

,

ment of women and children thus displacing ,

men and reducing the wages of the family as

whol e to the l ev el of the forme r wages of the
man alone At the same time th ree or four
.
132 S O C I AL I S T E C ON OMI C S OF MA C H I NE RY

conc eived theo ri es of valu e surplus value and ,

incr easing miser y .

w
N o d oubt the use of labo r saving machin ery
,
-

has en riched many ent erp rising capitalists esp e ,

cia ll y those ho have fi r st int r oduced the var ious

imp r ovements While doing this however it
.
, ,

has b r ought great and permanent ben efits to the

laboring class enabling th em to maintain a stand
,

a r d of comfor t possibl e only to those who liv e

in highly capitaliz ed countr i es A b ri ef ex ami .

nation of the socialists arguments will show the’

essential weakn ess O f thei r position .

C o ntr a d i c ti o ns — When socialists admit

. ,

though gr udgingly that machin ery increas es the

,

p r oduct of industry they admit in eff ect that

, , ,

the employe r s cannot ke ep all O f the values ther e

by created T he p roduct p er labor er b eing in
.

c reased the market valu e of labor tends to ris e

, ,

inasmuch as d emand for labor which p r oce eds ,

fr om the supply of the p r oduct has incr eased ,

mor e rapidly than the supply of labor .

Exc ept wh er e machine ry is tempor arily mo

nop ol iz ed as by patents or tr ade s ec r ets co mp eti
, ,

tion b etween employ er s causes p r ices to fall and

wages to rise so that much of the inc reas ed p r od
,

u ct go e s to the labo r e r s in the fo r m of incr eased

money wages and r educed cost of living To say .

’
that the income of the laborer s family must r e
main the same and even diminish regardless of ,
 S O C IALI S T E C ON OMI C S OF MA C H I NE RY 1 33

the volum e of the p r oduct the labor of wife an d ,

child ren or the increas ed effi ciency of l abor is

, ,

to appeal to the subsist enc e theo ry of wages and

“ ”
the law o f incr easing mis ery b ack of whi ch ,

is the Malthusian theory o f population which ,

Mar x r idicules .

T he distinction mad e by Mar x betwe en con

stant and variabl e capital is very important but ,

leads to conclusions quit e contra ry to those

d rawn by him Buildings ships r ailways ma
.
, , ,

chiner y and other constant capital cannot in

, ,

c reas e without a corresponding inc rease in wh eat ,

flour b read cattl e b eef fish building mate rials

, , , , , ,

houses cotton w ool en and leather goods and all

, , ,

the forms of va riabl e capital available as food ,

clothing and sh elter for the working cl ass Con .

stant capital exis ts for the sake of p r oducing

variabl e capital ; it is a m eans to that end .

Moreov er it i s in the p r oduction of ch eap

,

cottons wool ens shoes and othe r staple ar ticl es

, , , ,

su ch a s the poor consume that machin ery is most ,

us ed and not in p r oducing luxur i es for the rich

, ,

which a re more commonly mad e by hand If .

,

then va riable capital inc reas es more r apidly than

,

the numb er O f labore r s it follows that the value

,

of labor must ris e whil e the value of commodi

,

ti es r elatively falls In oth er wor ds a given

.
,

quantity of labor must exchange for a larger

quanti ty of comm oditi es than it did b efo re .
1 34 S O C IAL I S T E C ON OMI C S OF MA C H I N E RY
’

Marx p r actically a dmits this wh en he says

In p r opor tion as capitalistic p r oduction is de
v eI O p ed in a count ry in the same p r opo rtion
,

does the natur al int ensity and p r oductivity of

labor the re rise about the int ernational level ;

w
therefor e nominal wages will be high er but not
, ,
” 1
nec essarily r eal wages .

No it i s clear that r eal wages also will be

highe r S ince the p rice of machin e made com
,
-

m odities will fall . In fact barr ing abnormal ,

p rice movements such as those caused by the

,

World W a r real wages or the purchasing power

, ,

o f wages have r isen in England G ermany the

, , ,

United States and all machine using count ries

,
-
,

while stagnation and pove rty char act er iz e the

more backwar d countries like most parts of A sia , ,

whe re nearly everything is done by hand .

This is so well unde r stood in England that the

socialis t writer s Sidney and Beatrice Webb say ,

“ ” “
in thei r Industrial D em ocr acy : It is not the
individual capitalist but the tr ade union which
,

most str enuously insists on having the very latest

” 2
imp r ovements in machinery .

D isp l ace L a bor — L abor sav .

-

ing machine ry is labor displacing but usuall y -

,

onl y for a time A s a rul e wh en imp r oved

.
,

machinery is intr oduced in a given industry ,

1C ap i ta l ( S onn n h in p b l i h ) p 5 7 1
e sc e u s er

1 nd t i l D mo
. .
, ,
2 us r a e y p 4
cr ac1 3 , . .
 w
1 36 S O C I AL I S T E C O N OMI C S OF MA C H I N E RY

w
E ven then much of the misery that the hand
,

worker s Of England suffe red might have been

p r evented had they kno n ho to adapt them
selves to the new conditions as organized worke r s ,

a re usually able to do While in cer tain districts

.

hand loom weave r s wer e star ving in othe r places

-
,

ther e was a gr owing demand for worker s in the

new cotton and woolen factor ies particularly in ,

the nor th and west of England T he Webbs go .

so far as to say : The really cr uel stages of all

this suffering are n eedless We have .

failed to discover a single instance of su p er ses

sion by machinery in which it woul d not have
been possible for the sup er sed ed handicr aft at
l east to have died a painless d eath There are .

industr ies which have been changed by machinery

as thor oughly as w eaving but in which owing , ,

to the enfor cement of a di ffe rent policy by the

t rade unions conc erned the hand work er s have
,
-

not only sur vived but are to day busi er more

,
-
,

highly paid and mor e skillful than ever they

,
” 1
we r e before .

N or can it be shown that employment is mor e

i rr egular than for merly D uring the Middle .

Ages all classes of soci ety wer e dep endent upon

the crops which depended upon the weather
, ,

than which nothing coul d b e mor e variable and

i rr egu lar Famin es w er e comm on so that not
.
,

1 nd t i l D m1
y p 4 17
us r a e o cr a c ,
. .
 S O C IALI S T E C ON OMI C S OF MA C H I NE RY 1 37

only was the re fr equent stagnation of business

and scar city of employment but myriads of ,

p eople died of star vation and p estilence .

w
In th ese days of imp r oved tr ansportation ,

wh en the world p roduces for a world market ,

famines are almost unkno n exc ept in non capi ,

-

ta listic count ri es and most O f the worke r s in the

,

indu str ial a rmy a re employed most of the time ,

while p r actically all of the unemployed the u m ,

employabl e exc epted are un employed only a

,

small part of the time .

The b est figur es on this subj ect are those of

the B ri tish tr ade unions which show that the ,

mean annual p erc entages of unemployed u nion

ists in fou r p rincipal industr ial gr oups vari ed
fr om p er c ent in 1 8 73 to
p er cent in
1 8 7 9 the most common p er c entages being in
,

the n eighborhood of 4 or 5 p er c ent In the .

early y ear s of the 2 oth century the p er centages ,

vari ed fr om a minimu m of in 1 9 0 0 to
in 1 90 4 and in
Statistics of unemployment in the Unite d

w
States a re incompl ete and unsatisfactory but ,

such as th ere a re s eem to show that fluctuations

in employment in the State of N e Y ork and in
Massachus etts are much greater than in Great
B ritain p erhaps b ecaus e of extr em e climatic and
,

1 W H B v idg Un mp l oym nt p 39 A C Pigo Un m

e er e, e e u, e
o
. . . . . .
,

p yment, p
l . 28 .
138 S O C IAL I S T E C O NO MI C S O F MA C H I NE RY

seasonal changes and the cong estion of p op ul a ,

tion esp ecially r ecent immigr ants in the east er n

, ,

cities T he Massachus etts statistics as to em

.

ployment of o rganized worke r s show that fr om

1 9 0 9 to 1 9 1 8 unemployment va ried f r om 3 p er
c ent for the quarter ending J une 2 9 1 9 1 8 to , ,

p er cent for the qua r te r ending D ecembe r

31,
C tainly unemployment is all too p revalent
er ,

in this country esp ecially in the winter months

, ,

but it cannot be attr ibut ed to the use of ma

chiner y nor to conspi r acy on the par t of employ
ers .A s Mar x himself says capita l ists desir e to ,

hav e their capital constantly employ ed Capital .

seeks labor j ust as labor seeks capital and the ,

fact that th ey d o not always m eet must be due

to imper fect organization of industry and im
,

per fect foresight O f futur e industrial conditions .

A s p r oduction bec ome s mor e sci enti fi c and

organization mor e p er fect there will doubtless ,

b e less idle capital and fewe r idle work er s and ,

imp r ovements in machinery and methods will be

intr oduced without the loss and dist ress that so
oft en accompany th em at the p resent time .

M achinery M a kes for S hor ter D ay — Wh at

Mar x says about machinery in r elation to the
hou r s of labor is but a half truth n egl ecting the -
,

1F T C a l t on T h H i to y nd P o bl m
. . r , f O ga ni d L a bo
e s r a r e s o r ze r,

pp 5 07 5 10
.
-
.
1 40 S O C IAL I S T E C O N OMI C S OF MA C H I N E RY

t raining as well B esides the life of a wor ker in

.
,

a great factory is in many r espects br oader than

that Of the h andicr a ftsnian in his little shop The .

moder n workman too Often enj oying consider , ,

able leisur e has the b r oad ening influence of the

,

public school the lib r ar y the tr ad e union the

, , ,

lodge the institutional church and the athletic

, ,

club so that both mentally and physically he is

, , , ,

or may be the supe r io r of the a r tisan of forme r

,

M en N ot D isp l aced by W om en — Women and

childr en while th ey may displac e men in certain
,

fields of work can n eve r displace them fr om the

,

industrial army so long as most occupations de

mand strength endur ance and other qualities
, ,

which men possess in a p re emin ent degre e -

.

Machinery has incr eased the demand for men ,

while at the same time making places for women ,

with the r esult that the total p r oduct of indu st ry

has been gr eatly incr eased Wages are paid .

ou t o f the p r oduct of indust r y and women ,

worker s c reating at least as much as they r eceive

, ,

have not diminished the shar e r eceivabl e by men .

In the yea r 1 89 0 the numbe r of women and

gi rls engaged in gainful occupations in the

w
United States was in r ound number s , ,

an d in the year 1 9 1 0 they numb ered

If th ese women could not earn th eir o n living ,

in whole or in pa r t th ey would b e a bur den upon

,
 SO C IAL I S T E C ONO MI C S OF MAC H I N E RY 1 41

th eir mal e r elatives and the nation s incom e ,

’

would b e reduc ed by the amount of the com modi

ti es p r oduc ed and the s erv ic es rend ered by th em .

That men have not b een displac ed by the in

creased employment of women is shown by the
fact that in th e y ear 1 9 1 0 th er e w ere
males engaged in gainful occupations as against ,

in the y ear 1 8 9 0 In the year 1 9 1 0 .

,

th erefore the re w er e over

, people en
gaged in gainful occupations out of a total
population of or an av er age of about

two b read winn er s to every five per sons

-
1
.

T he th eor y that the income of a family is no

greater wh en s ever al m embe r s wor k than wh en
the b u rd en of th ei r suppor t falls on the man
alone is a modification of the Malthusian th eory
,

of population and quite cont r a r y to exp erience

and common s ense It may apply possibly to .

, ,

c ertain restr icted localiti es or to c ertain A siatic ,

count ries whe re every b ett erment of the labo r er s

,
’

lot results in ear ly marriages and r apid increase

of population but it has not b een true of the
,

wester n world in gener al during the past hu n

dred year s .

D mestic
o a nd P rofessional W orker s .
-
D O

m estic s ervants a re r elatively d ecr easing in

numb er s whil e th eir wages ar e r apidly increas
,

1T h i t nt h C n
r ee f th Uni t d S t t
e s us o V l IVe e a es o
O p at ion S ta t i ti
.

ccu s cs.
1 42 S O C IAL I S T E C ON OMI C S O F MAC H I NE RY
ing as every employer of that sor t of labor
,

knows to his cost F r om 1 8 9 0 to 1 9 1 0 the num

.

“ ”
b er of se r vants an d waiter s inc reased by o nl y
27 p er c ent while the wo rking population in the
,

same time increased by 60 p er cent In fact the .

,

wages of domestic ser vants a re a good index of

the increasing p r osp erity of the working class ,
“ ”
an d a convincing r efutation of the l aw of in
cr easing misery .

C lergymen physicians teache r s a rtists and

, , ,

other pe rsons who r ende r p rofessional and p er

sonal ser vice a re as p r oductive as any labor
er s even though they may not dir ectly c reat e
,

material w ealth A l so they ser ve the working

.
,

class more and mo re for the increase d p r oduc

,

tiv ity of mode r n industr y has made it p ossible for

the p oor est wage earner s to have something more
-

than the bar e necessaries of life .

The socialist theor y that industrial crises a re

t r aceable to over p r oduction of consumabl e
goods and the decr easing pur chasing power of
the wor king class has b een often r efut ed and will
b e considered in d etail in the next chapter .

While it would be absur d to deny that there

a r e evils connecte d with the p rivate own er ship

and use of machinery it is equally absu rd to say

,

that these evils must grow wor se and wor se until ,

th ey d estr oy the capitalism that engender ed

th em and r eveal a new and almost per fect social
,
 T HE S O C I AL I S T TH E O RY O F
C RI S E S

S ocialists have little to say about the financi al

features of crises which loom so l arge at the
,

p resent d ay but they have a clear cut an d very

,
-

simple theor y of indust rial c rises derived from ,

the p redecessor s of Marx : Four ie r Sismondi an d ,

R odb er tu s A ccor ding to this explanation c rises

.
,

a r e due to the enormous p r oductiveness of m od

er n machine indust r y coupled with the increas ,

ing mise ry of the wo rking class R odb ertu s .

“
says : With incr easing p r oductiveness of the
labor of society the wages of the laboring class
,

b ecome an eve r small er p ortion of the national

p r oduc t . The p r oductiveness of labo r has

incr ease d an d continues to increase while the ,

qu antitative sum of wages has at best not in

cr eased in like p r oportion has perhaps r emained ,
” 1
stationary or even fallen .

It is a question of supply an d demand the ,

1 K J R db t O p o du t ion nd C i
o er u s, v er r 1 850 T an l at d
c a r ses, r s e
by J l i F an k l in 18 98 pp 71 73
. . .

u a r , , .
,
.

144
 S O C IAL I S T T H EO RY OF C RI S ES 1 45

supply inc reasing with every imp r ovement in

machine ry and methods the demand falling off
,

because the mass of the p eople cannot buy their ,

wages being kept down to the level of bar e sub

sist ence Pr esently ther e is a glut or sur plus
.

cul minating about onc e in ten year s in a cr isis

or panic follow ed by a pe riod of dep r ession then
, ,

by a time of p r osperity l eading up to anoth er

c risis more disastrous than the for mer and thus ,

decade after decad e capitalism suff er s fr om

p eriodic attacks of an incur able dis ease .

R odb ertu s h eld that cr ises could be abolish ed

by giving to the working class the full p r oduct
of thei r labor so that consumption might keep
,

pace with p r oduction demand with supply H e

, .

said that unl ess soci ety should wake up to the

necessity of securing this ideal distribution of

w
income history will indeed have to swing the
,
”
lash of revolution over her again .
1

M a ra ia n Vie
'
of C ri es
s — Mar xian socialists
think that capitalism cannot cu re its own dis
eases and that cris es will increase in fr equency
,

and violenc e until the final collapse of the decay

ing system in which they r age like an inte rmittent
fever Engels says : The mod e of p roduction
.

ri s e s I n r ebellion against the fo r m of exchange .

The bourgeoisie ar e convicted of incapacity

furthe r to manage th eir own p roductive forces .

R db t
1 o p i t p 1 40
er us, o . c .
, . .
1 46 S O C IAL I S T T H EO RY OF C RIS ES

The p r oletariat seizes political power an d turn

”
the means of p r oduction into state p r operty .
1

Engels did not altogether follow the theory of

R odb er tu s and even attacked it laying mor e
, ,
“
stress upon anarchy of p r oduction as the chi ef
featur e of competitive capitalism This anar chy .
,

however results in planless excessive p roduc

, ,

tion so that he comes back to overp r oduction and

,

unde r consumption as the basic causes of indus

“
tr ial crises He says : The enormous expansive
.

w
force of mode rn industry compar ed with which ,

that of gases is m er e child s play app ear s to us ’

,

no as a necessity for expansion both qualitative ,

an d quantitative that l aughs at all r esistance, .

The extension of the mark ets cannot ke ep

‘

pace with ext ension of p r oduction the collisions ,

” 2
become pe r iodic
The position of Ma rx in this r egar d is some
what doubtful an d even contradictory In the .

“ ”
se con d volume of Capital he ridicul es the
“
theory Of R odb ertu s thus : It is mer e tautology
to say that c rises a re due to lack of consumer s
who are able to pay for what th ey want
C r ises in each instance ar e engend ered in tim es
in which wages as a r ul e a re r ising and the work
, ,

ing class is actually r etaining a larger shar e of

1 F En g l S o ia l i m Ut op ia n nd S i nt i fi
e s, c s ( S onn n h in
a c e c e sc e

p bl i h )
.
, ,

u s er .

1 bid p 4 1
2 .
, . .
1 48 S O C I AL I S T T H EO RY OF CRI S E S

F oreign C ommerce —I n recent y ear s social ists

have called attention to for eign commer c e as
making an outlet for the surplus p r oducts of
capitalistic countries In this way they say the
.
, ,

downfall of capitalism will be postponed until

the markets of R ussia C hina S outh America , , ,

A frica and oth er backwar d countries a re as

,

fully exploit ed as those of western Europe and

the United States .

Then ther e will be for capitalism no more

wor lds to conquer no other outl et for surplus
,

p r oducts which will quickl y accumulate until

,

ther e sha ll b e in every line an enormous over

p r oduction when the most fear ful c r isis in his
,

tor y will occur involving the final and utt er

,

collapse of capitalism Th en the p r oletarians .

o f the wo r ld will take cont r ol and r econst r uct

society on the new foundation of int er national

collectivism .

Victor Be rger in his testimony before the

,

Committee on Elections of the House of R ep r e

senta tiv es on J uly 2 4 1 9 1 9 ; made much of this
,

st ruggle for world markets declar ing it to b e ,

the chief cause of the World W ar He said : .

“
Ever y manufacturing country was and is in
—
the same boat as we a re looking for markets
to s ell their surplus p r oducts N ot in any coun .

try and und er no ci r cumstances can the p r o

du cers get mone y enough t o buy back the p rod
 S O C IAL I S T T H E ORY OF CR IS ES 1 49

w
nots of the country und er the capitalist system .

N O matte r What we do we cannot get r id of all

ou r sur plus p r oduction — e can t sell it ; the r e is
’

not mar ket enough for it in the world .

The inference is cl ear Capitalism in every .

country trying to escape fr om itself car ries its

, ,

contr adictions and conflicts to every part of

the world onl y to find itself pur sued by the evil
,

geni us of the system S oone r or later the

.

avenger will overtake it and the ol d or de r , ,

economic and political capitalistic and imp erial

,

istic will go down to ruin

, .

I n all this can be s een the str ange consistency

and inconsist ency of
“
scientific socialism c on— ”

sistent with i t s elf as a great p r oduct of the im

a gina tion but quite inconsistent with the facts
,

which it is supposed to explain .

T he socialist theory o f c rises is in per fect

harmony with the rest of the Marxian system It .

go es back to H egel in that it is an exp ression of

r evolutiona ry dialectics which finds contra dic
,

t ions everywh er e especially in capitalistic so

,

ciety . Capitalism in this vi ew is torn and

, ,

shaken by contr adictions gener ated by the con

ditions of p r oduction and exchange W e have .

w
value cr eat ed by labor and surplus valu e seize d
by the capitalist socialized p roduction and indi
,

v idu a l ized di st r ibution fe magnates and many

,

p rol etarians concentr ation of wealth and increa s

,
15 0 S O C IAL I S T T H EO RY OF C RI S ES

ing misery increasing p r oduction and dec reasing

,

consumption expansion of sup p l y a nd contr ac

,

—
tion of d emand all pointing to the b r eakdown
of capitalism the intensification of the class
,

w
struggle and the sp eedy coming of the social
,

r evolution .

He r e ar e suggeste d t o ways in which the end

of the capitalist wo rld migh t come : fir st by the ,

expansive an d explosive powe r of modern in

du stry ; s econd by the action di rect or indi r ect
, , ,

of the wo rking class The theory of c rises of

.
,

cour se lays stress upon the former but by no

, ,

—
means exclude the latt er .

S oci al ist T heory I s F al se I n c riticism of

this theo ry it may be said that while ov erpr odu c
tion of consumption go ods in many lines though ,

not in all invariably accompani es an industrial

,

crisis the cause of it is not the inc reasing pov

,

er ty of the wor king class but an accumul ation of

,

mistakes in p r oduction t r ac eable to the limita

,

tions of human ability and p r escience cont ending

with the diffi culties and complexities and inces
sant changes of the business wor ld M ar x him .

s elf admits that the condition of the working

class imp r oves during the time of p rosp er ity
which p r ecedes and gives r ise to the crisis thu s ,

w
contr adicting the central point of the socialist
theory .

A s Tugan B arano sky T E Burton L ang

-
,
. . ,
1 52 S O C I AL I S T T H EO RY OF CRI S E S

which case p rices fall and the worker s what ever

, ,

th eir money wages enj oy an inc rease in r eal

,

wages by vi rtue of the abundance of the neces

,

sa ries and comforts of life .

If on the oth er hand the goods ar e not sol d

, , ,

ther e must be perpetual over p roduction and a -

continual crisis which is a contradiction in t erm s

, .

P erpetual over p r oduction is impossible and con

-

trary to expe r ience so that the incr easing pr o

,

du ctiv eness of modern indust ry must and does

cause p rices to fall and r eal wages to rise while ,

business men and capitalists as the p r ocess goes ,

on must content th ems elves with smalle r p r ofits

,

and l ower r ates of inter est .

Again if we suppose for sake of argument

, , ,

that the working class because of incr easing ,

mise ry cannot buy is it not absur d to suppose

, ,

that business men will go on p r oducing year ,

afte r year commodities for which th er e is no

,

demand Will they not r ather in view of the

?
,

w
stationary or declining d emand for the neces
sa ries of life the things consumed by the work
,

ing class p r oduce luxur ies for thei r o n class

, ,

whose purchasing p ower is unlimited or limited ,

only b y the ever incr easing mass of surplu s

-

valu e ?

w
This as a matter of fact is what business men
, ,

do They p r oduce for the market in r esponse

.
,

to demand which is contr olled by the people ho

,
 S O C IAL I S T T H EO RY OF CR I S E S 153

have p urchasing power If the wealthy have it .

,

and wish to sp end r athe r than to invest many ,

luxuri es are p r oduc ed ; if the wor king class have -

it n ecessari es comforts and some lu xuries will

, , ,

be p r oduc ed for them Ind eed as has been .

,

shown in the p r eceding chapter mod ern machine ,

methods have notably incr eas ed the quantity and

r educ ed the p r ice of the l eading staples which ,

ar e chiefly C onsumed by the labo rer s and the

middle class .

T he for ce of this c riticism cannot be evaded by

saying that the exporting of sur plus p r oducts to
foreign lands postp on es the final crisis and col
laps e of capitalism The embarr assing surplus
.

o f unsalable goods of which th ey sp eak do es not

exist The so called surplus is c reat ed in re

.
-

sp onse to foreign demand If th er e w ere no

.

foreign demand the surplus would not be c reat

ed exc ept by accid ent or as the r esult of miscal
,

culation of the home demand .

If the United States were shut ou t fr om all

the markets of the wor ld she woul d lose the ,

p r ofits of her foreign tr ad e do without co ffee , ,

r ubbe r t ropical fruits and oth er us eful com

, ,

modities and would suffer har dship for a time

, ,

but ch r onic over p r oduction of cotton wh eat

-
, ,

cattle and the like would not b e the p ermanent

res ul t B efore long p r oduction would b e a d
.

j usted to demand the eli min ation of foreign

,
1 54 S O C IAL I S T T H EO RY OF CRI S ES

commer ce might tend to r educe the severity of

cr is es and farmer s manufacturer s merchants
, , ,

and laborer s dep rived of the advantage p r e

,

v iou sl y enj oyed would cut thei r coat accor ding

,

to th ei r cloth .

The United States could get along fairly well

without for eign commer c e ; but England B el ,

gium and oth er populous manufactur ing coun

tries absolut ely n eed the foodstuffs of other
countri es to feed th ei r people millions of whom ,

would die if isolated fr om the r est of the world .

w
Ther efore capitalism is not the chi ef power im
pelling nations to s eek foreign markets to ac
,

quir e colonies and at times to make ar for

, , ,

the attainm ent of thes e ends Manufacturers .

w
an d mer chants are but the agents of the people
in carrying on these activiti es although of , ,

cour se they are fighting for their o n han d A

, .

socialist England und er the same p r essure of,

p opulation might be even mor e militaristic and

,

navalistic than the bourgeois England of the

p resent day Indeed ther e is r eason to think
.
,

that capitalism with its network of international

,

connections is mor e p acifi stic than any socialist

,

nation would be with its aggr essive p r opaganda

,

for the conve r sion o f the wor ld .

S cial ist P rop hecy G rou ndl ess

o —A s to the .

p r oph ecy conc erning the final crisis and end of

the capitalist wo r ld it may j ustly be said that ,
156 S O C IAL I S T T H EO RY OF CR I S ES

scious citizens how to administer the business

,

of the ir r espective count r ies for the co mm on

” 1
g ood .

But after that time ther e was no worl d c risis

of the fir st magnitude until the year 1 9 1 4 when ,

the Wor ld W ar br oke ou t and even then capi ,

talism did not coll apse but r ose to the O ccasion ,

w
in a most e xtraor dinary way carrying the na ,

tions along thr ough mor e than four year s of

w
ar and thr ee y ea r s Of slow and p ai nful r e

cup er a tion .

T he P resent C risis —The crisis which is no

o n, an d which may be followed by year s of de
p ression was not caused by the incr easing misery
,

of the wo r king class but was the natur al r esult ,

of gr eat inflation waste piling up of d ebts an d , ,

c redits expansion and r estriction of p r oduction

,

in many lines and gener al dislocation o f the

,

financial and industrial system N or is it likely .

to result in the b r eakdown of capit alism even ,

though it may b e accomplished by widesp read

bankruptcy serious losses to business men an d
,

othe r p r oper ty owner s an d much har dship ,

among the working class .

In spite of all that the industrial s truc tur e , ,

l ike a damaged ant hill or honeycomb will be -

,

built up again much as b efor e unless indeed , , , ,

the worker s r ebel against thei r leader s and try

1 B n t in Z
e1
'
s e G hi h t
,
Th i d S i l i m p 221
ur esc c e u . eor e . oc a s us, .
.
 w
S O C IAL I S T T H EO RY OF CRI S E S

to set up a totally ne system of contr ol Thi s .

would not be the p redict ed collapse of capitalism

by industr ial c risis according to the formul a of
,

R odbertu s but the final outcome of the class

,

stru ggle the revolt of the p r ol etariat upon

, ,

whi ch when all else fails Marxian socialists

, ,

take their final stand .

The fact is that capitalism like a h ealthy l iv ,

ing organism has wonderful power s of adapta

,

tion to changing envir onm ent and of recup er ,

ation afte r s ever e str ains and d eathlike wounds .

Even b efor e the W a r the United States was ,

p r otecting its elf against financial tr oubl es by

imp r oving the system o f cr edit and banking ,

w
especially th r ough the Fed er al R es er ve A ct ,

which took effect on N ovemb er 1 6 1 9 1 4 When , .

the ar b r oke out the mon eta ry str ingency was

r eli eved by the issue of em ergency not es unde r

the A ldrich Vr eeland A ct which tid ed ove r the

-
,

d anger until the F ed er al R ese rv e B oar d had the

situation well in hand T he B oar d may have .

made mistakes but it has doubtl ess p revent ed a

,

w
se rious financ ial c r isis on mo r e than one occasion .

Similarly the E u r opean count ri es have car

,

ried on fou r yea r s and more of ar without

financial coll aps e by m eans of the mor atorium

, ,

the closing of stock and p r oduc e exchanges a d ,

vanc es by the great cent r al banks the issue of ,

emergency curr ency and oth er devices Even

, .
 58 SO C I AL I S T T H EO RY O F CRI S E S

if gr eat financial disaster should come the Allied ,

nations at least will not consid er it too gr eat a

, ,

p rice to pay for victory and peace .

P rotective T endencies — N or would it be .

har d to S how that capitalism is p r otecting itself

aga inst indust rial crises also by means of better ,

methods of p r omotion and investment by scien ,

tifi c p r oduction by business education by the

, ,

analys i s of i ndustrial conditions which makes a

ce rtain d egr ee of p r ediction possibl e by co 0 p er ,
-

ation among business men and by the coneen ,

tra tion of owner ship and contr ol which if not , ,

carrie d too far may stabilize and r egulate the

,

indust rial or ganization and give it a certain im

,
‘

munity fr om the wor st e ff ects of indu strial

c rises This tendency is r ecognize d by some
.

socialists notably Be rnstein who says : With

, ,

ou t allowing mys elf to p r ophesy conce r ning the

final outcome of syndicates and t rusts I have ,

r ecognized the possibility of l essened dange r

fr om crises becaus e of the adaptation of p r oduc
” 1
tion to the needs of the market .

T hus is b r ought to light anoth er contr a diction

in the Marx ian system between the theory of ,

anarchic or planless p roduction res ul ting in ,

crises an d the theory of the concentr ation of

,

capital re sul ting in increasing exploitation and

the r ebellion of the working class Unable to .

1 B n t in D i Vo
er s e ,
t ng n d S i l i m
e r a u sse zu p 76 e . oc a s us . .
 THE M AR X I AN THE O RY O F THE
C O N CE N T RA TI O N O F
C AP I T AL

Marxian socialism is scientific in intent if not ,

in content because it tries to formulate the laws

,

o f social evolution and p r ofess es to see the new

social o rder growing as an embry o within the

, ,

body of the Old .

The concentr ation o f capital was p art ly O b

ser ved by Mar x but for the most par t deduce d
,

fr om the theori es of value and surplus value in

t erms of the Hegelian logic In fact the theory .
,

p r oceeds so logically step by st ep fr om p r emise

, ,

to conclusion that one susp ects at the ve ry ou t

, ,

set that it has but slight r elation to the facts in

,
”
the case C er tainly the law of the accumul a
.
,

tion an d conc ent ration of capital was not p roved

statistically but thought ou t by Marx as a
,

math emati cian d erives one p r oposition afte r a n

othe r fr om p r eliminar y d efinitions axioms an d ,

postulates .

The argument runs about like this : A ll val ue

“ ”
is c reated by labor which has the peculiar
,

160
 T H E O RY O F C ON C EN TRA TIO N OF CAP ITAL 1 61

p ower of c reating more value than it receives .

This surplus value stolen by the capitalists

, ,

grows ever larger with eve ry imp r ovement in

machine ry and m ethods of p r oduction wh ile the ,

mis ery of the wor king class inc reas es more and
more Wealth accumulat es b ecause neith er the
.
,

laborer s nor the capitalists can consume it and , ,

as comp etition gr ows fi ercer the big capitalists , ,

the mi nt e fficient eat up the little ones

, Thu s .

the middle class gradually disappear s and the ,

p rol etariat the many seeing great wealth in few

, ,

and feeble hands take it away fr om th em as the

, ,

strong in the st ruggle for existenc e have always

, ,

done .

M a rm A nticip a ted S ocialist s often give

Mar x cr edit for having p r oph esi ed the concen
tra tion of capital as r ealize d in the trusts and
combinations of the p res ent day but s ever al ,

oth er write r s had already don e that The b ril .

liant French economi st Constantin P ecqu eu r

, ,
“
in his Economi e S ociale ( 2 d ed whose .
,

work was well known to Mar x anticipated him ,

“
in a r emarkable way thus : Everyone knows
,

that in r eality in using st eam to reduce the cost

, ,

of p r oducts and r ealize gr eat advantages it is ,

ne cessa ry to Op er at e on a large scal e to u se large ,

amounts of capital and a l arge numb er of work

men ; in a wo rd to p r oduc e on a la rge scale
,

O ne may r eadily infer that j oint stock com

1 62 T H EO RY OF C ON C E N T RATI ON OF C AP ITAL

p a nies very r ich individual capitalists and

or

manufacture r s will swallow up the work of the

small p r oduc er s killing th em off by competition
,

which is immeasu r ably unequal and cru elly piti

less . Eithe r on the disappear ance of small
scale p r oduction the small p r oduc ers will be
co pa r tn er s Of the la rge conce r ns ; or th ey will
-

degenerate into paid workm en into a herd of ,

ser fs wor king f r om day to day in facto r i es ; into

p rol etarians always poor always without a fu

, ,

ture ; and all the large indu str ies will be exclu
” 1
siv el y monopolized by an indust r ial f eudalism .

The oft quoted statement of Mar x hims elf

-
,

though strikingly eloquent do es not add much ,

“ ” “
to this In Capital he says :
. This exp r o
p r ia t io n is accomplished by the action o f the
imman ent laws of capitalistic p r oduction itself ,

by the c entr alization of capital O ne capitalist .

always kills many Along with the con .

sta ntl y di minishing numbe r o f the magnates Of

capital who usurp and monopolize all advantages

o f this p r ocess of t r ansfo rmation gr ows the mass ,

of mise ry opp r ession slave ry d egr adation e x

, , , ,

l o it tion ; but with this too gr ows the r evolt of

p a

the working class a class always increasing in

-
,

numbe r s and disciplined united o rganized by , ,

the very mechanism of the p rocess of capitalist

1 C i t d in S imk h it h M a xi m
e S o ia l i m p 4 8
ov c Cfr s v ersu s c s

Ma x C ap i ta l p 78 7
. . .
, ,

r , , . .
1 64 T H EO RY OF C ON C E N TRATIO N OF C AP ITAL

ings everywhe r e would be swallowed up by great

e states and bonanza fa r ms .

P er haps if Marx and Engels had had more

,

exper ience of country life they woul d have ,

und er stood the advantages of the small farm and

the ext reme difficul ty of applying capitali stic
methods to agri cultur e A t any r ate agr icu l . .
,

tur a l statistics in all countr i es are quite at vari

a nce with the socialist p r ediction .

F or example in Ge rmany in the year 1 882 , , ,

no les s than p er cent o f the fa rms we r e of

less than 2 0 hecta res ( 5 0 acr es ) and ,

hectar es ou t of a total of h ectar es

wer e thus h eld In the year 1 8 9 5 the situation
.
,

was p r actically the same : p er cent o f the

farms were under 2 0 hectar es and p er c ent ,

o f the total a r ea consist ed of such hol di ngs

1
.

The A merican farm is of course far larger , ,

than the Eur opean but it shows a t endency to ,

diminish in size A ccor ding to the United States

.

C ensus the ave r ag e size of farms in the year

,

1 8 5 0 was ac res ; in the year 1 9 00 it was

acr es ; and by the y ear 1 9 1 0 it had fallen to
2
acres .

T rue the value of the aver age farm including

, ,

buildings machin ery and livest ock in the y ear

, ,

1 8 5 0 is given as in 1 9 00 it was
1 S t ti ti l d
a s D t h n R i h
c es N F B d 1 12 p 1 1
eu c e Cf e c es.
S k l ton S o i a l i m p 159
. . . .
. .
,

e c s

T h i t nth C nsus f th Uni t d S ta t Ab t t

, . .
,
2 r ee e o e e es. s r ac .
 T H E ORY OF C O N C E N T RATI ON OF C AP ITAL 1 65

and in 19 10it was This of cour s e in , ,

dicates the p r osper ity of the Am erican fa rme r

r athe r than his app r oaching anni hilation

A M Simons in The American Farmer

. .
“
,

( 1 9 0 3 ) and late r wr itings has tr ied to show that ,

the increase of t enancy and farm mortgages to ,

gether with the activiti es O f banks r ailway com ,

n i s elevator cold stor ag e and packing com

p a e , ,

w
p a n ies, and the like have mad e the fa
, rme r s mo re
“ ”
dependent than former ly on the big business
of N e Y ork Chicago Minneapolis and other
, ,

great cities .

w
Apar t fr om the fact that th ese various agen
cies hav e b een of immens e benefit to the farmer s ,

especially in the West this ne interp retation of ,

concentration is very far fetched and quite for -

eign to the thought O f Ma rx Ce rtainly this .

,

great industry the p roperty values of which in

, ,

the year 1 9 1 0 wer e estimated at

,

or about a four th of the total w ealth of the

“ ”
United Stat es must be excluded fr om the law
,

o f conc entr ation until some time in the dim and

distant futur e .

W hol esal e a nd R eta il T r ade — Then ther e is .

anothe r great fi eld in which conc ent r ation ,

though consider able has fallen far short of the ,

socialist expectation and that is wholesale and ,

r etail t r ade According to the United States

.

“
Census the re w er e wholesal e merchants
1 66 T H E ORY OF C ON C E N T RATIO N O F CAP ITAL

and dealer s in the year 1 9 0 0 and no less than ,

people of this class in the y ea r 1 9 1 0 The .

figures of cour se say nothing about the v olume

, ,

of business done by the se people .

R etai l merchants have not mul tiplie d so

2

w
r apidly as those calling themselves wholesal er s ,

but it is gene r ally admitted even by socialists , ,

that small m er chants a re holding thei r o n very

W ell against the great depar tment stor es the ,

chain stores and even the mail or der houses The -

.

“ ”
number of r etai l merchants and dealer s in the

w
United States incr eased fr om in the y ear
1 90 0 to in
—

w
T he F ina nci al P o er A s t o r ailway trans
.

p or t a t ion it is often
, said that about eight gr oup s
o f owne r s o n and contr ol some two thir ds of -

the mileage of the United States but ther e have ,

been few mer ger s in r ecent year s for in most , ,

cases the expecte d p rofits of cent r alization have

,

not mate r ialized M oreove r the r ailways of the

.
,

United States after a ll thei r consolidation do ,

“ ”
not y et seem r ipe for socialization .

In the financial field the existence of a money

t rust has been Often asserted and as oft en de
nied The r epor t of the P uj o Committee in
.

1 9 1 3 stated that 2 0 of the la rgest banks in N ew

Y ork City held p er c ent of the total r e

1 T h i t nt h C n
r ee
f th Un
e su s oi t deS t a te O p
es a t ion ccu
S tat i t i
s cs .
1 68 T H EO RY OF C ON C E N TRATI ON OF CAP ITAL

and the restr iction of C ompetition in the financial

world are far l ess than is commonly supposed .

M a nu factu ring But it was in manu fa ctur

.
-

ing that Ma rx expect ed concent r ation to have its

full e ffect and dur ing the past twenty year s
,

socialists have pointed to the gr eat American

“ ”
trusts as a striking fulfilment of his p r ediction .

Yet even her e the movement seems to slacken and

fall shor t of the mark .

In the year 1 9 04 the re we r e m anu fac

t uring establishments in the United Stat es and ,

in the year 1 9 1 4 ther e wer e of such estab

l ishments .O f cour se not all of them we r e in

,
“ ”
dependent conce rns as sever a l estab l ishments
,

might b e owned by a single corpor ation C er .

tainl y the co rpor ation is of gr owing impor

,

tance for in the year 1 9 04 no less than

, p er
“ ”
cent of the value added was p r oduced by cor
or a tions an d in the yea r 1 9 1 4 the cont r ibution
p ,

of co rpor ations amounted to er cent of

p
“ ”
such value Value added it may be said in
.
, ,

passing is the value of the p r oduct less the valu e

,

of the mat er ials used

1
.

L arge scale p roduction too is going on apace , ,

.

The manufactu ring establishments of the largest

size having a yearly p r oduct valued at
,

0 00 or mor e in the y ea r 1 9 0 4 p r oduced

, p er

c ent of the value added and in the year 1 9 1 4 ,

1 T h i t nt h C n u
r ee f th Uni t d S t a t
e s s o e Ab t t e es s rac .
 T H EO RY OF CON C E N TRA TIO N OF C AP ITAL 1 69

their quota was cent The figu es of

p er r .
,

cour se do not show whether manufacturing is

,
“ ”
b eing tru stifi ed or not nor the extent to which
,

combination is likely to p r evail in the futu r e .

Th ere is r eason to think howev er that the move

, ,

ment is n earing its limits J enks and Clark in .

,
“
The T rust P r oblem ( 1 9 1 7 ) say : In estima t
” “

ing the extent of both the economic and social

e ffects of industrial combinations it is essential
to note that th eir activity is li mited now to only a
pa rt of the industrial field not mor e than 2 5 p er ,

cent at the most and the re seems no likel ihood

, ,

that they will in this era if ever cover it en , ,

”1
tirel y .

Even the most no torious trusts seem to have

tr oub l e in dominating thei r r esp ective indust ries .

In the y ea r 1 9 0 4 the Standa r d O il Company

,

pr oduced p er c ent o f the illuminating oil

r efined in the Unit ed S tates but since that tim e , ,

becaus e of competition in California Texas and ,

O klahoma the p r oportion of the dissolv ed com

,

n ies has b een much r educed D ur ing the ea rly

p a .

year s of the Am erican Sugar R efining Company

it refined fr om 8 0 to 9 0 p er cent of the national
output but its p r oportion was not ove r 60 p er
,

c ent in the year 1 9 1 0 and according to the Sugar

, ,

T r ade J our nal it was only

, p er cent in the
ye ar 1 9 1 6 .

1 Jenk s and C l a k p i t p 2 12
r , o . c .
, . .
1 70 T H EORY O F C ON C E N TRATI ON O F CAP ITAL

The I nternationa l Harv ester Company p ro

du ced in the yea r 1 9 0 2 about 9 0 p er cent Of the
binder s 8 0 p er c ent of the mower s and 67 p er
,

cent of the r akes manufactu red in the United

S tates wher eas in the year 1 9 1 8 the quotas we re
,

r educed to 6 5 p er cent 60 p er cent and 5 8 p er , ,

cent r espectively
, .

The United States Steel C orpor ation organ ,

ized F eb ruary 2 3 1 9 0 1 p r oduced in that year

, ,
’

e cent o f the i i on 6 6 c ent of the

p r p g r
p er ,

stee l ingots p er
, cent o f the st eel r ails an d

p er c ent of finished r oll ed p r oduct includ ,

ing structur al mate rials ; but in the year 1 9 1 1 the

Ste el Corpor ation manufactured p e r c ent

w
o f pig i r on 5 4 p er cent o f ingots
, p er cent ,

o f r ails and , p er cent of the r olled p r oduct .

These p r oducts of cour se ar e the r a mater ials

, ,

w
for the manufactur e of mor e highly finishe d
p r oducts in which combination has not gone so
,

far
1
.

D ifiu sion of O
'

nership —Even if al l the man

u fa ctu r ing industries Of a given country were
completely tr u stifi ed and monop olized and they ,

a re ve r y far f r om that they would not ful fill the

,
“ ”
M a rxian test of ripeness for socialization u n
l ess the owner ship of them wer e also concentr at ed
in a few hands But on the contr ary ther e is a
.
, ,

strong tendency towar d di ffusion of owner ship ,

223 F d a l R p o t
1 55 e er e r er .
1 72 T H EORY OF C O N C E N T RATIO N OF C AP ITAL

Unquestionably the ownership of industrial

,

corpor ations has be en highly conc entr ated but ,

now appear str ong counte r tendencies towa r d -

di ffusion of owner ship by which the gr eat cor

,

or a tions may be la rg ely democr atiz ed In such

p .

an event th ey will like living organisms change

, ,

with the ch anging conditions and without col , ,

lapse or r evolution socialization may be indefi

,

n itely p ostp oned .

A s a par ody of the cel eb rated p rophecy of

Marx one might say with some degree of p r ob
, ,
“
ability : C ent r alization and decentr alization of
the means of p r o duction with di ffusion of owner
,

ship especially among the worker s at last r each

, ,

a point where p r oduc er s la rge and small and

, ,

thei r employees can meet on comm on gr ound .

The mor e industrious and frugal among the

worke r s receiving both wages and p rofits j oin
, ,

hands with the management and capitalism , ,

adapting its elf to the changing env i ronment ,

”
continues indefinitely .
THE MAR X I AN PR O P HE C Y O F THE
E L IMI NA TI O N O F THE MID D L E
C LA S S

L ike all Hegelians Marx interp rets huma n

,

life in terms of cont radictions which go by twos , ,

so he finds in every historical stage two chief

contending classes : maste r and slave bar on and ,

w
s er f capitalist and p roletariat Y et he must
, .
,

have known that at all times the re have been

many people ho did not belong to either of the

w
opposing classes or were par tly in one and partly
,

in the other .

S O while Ma rx sees in mod ern society but t o

,

gr eat rival class es he cannot ignor e the millions

,

O f unclassified p eople — working capitalists p rop ,

er ty owning wo rke r s
-
,
—
tr ader s and oth ers who ,

for lack of a b etter wor d a r e usually known as

,

the middl e class O bviously th ey act as a bu ffe r

.
,

betw een the gr eat capitalists and the p r ol etar i

ans and a re a stumbling block in the way of
,

socialism wh erefor Mar x writes of them in con

,

temp tu ou s t erms as though th eir v ery existenc e

,

were an impertinence He is pleas ed to think

.

173
1 74 EL IMI NATI ON OF T H E M IDDLE CLAS S

of them as a decadent and vanishing gr oup a sort ,

o f vestige like the ver mifor m app endix which

, ,

will be removed b ecause it no longer contributes

to human w ell being and p r ogr ess
-
.

T he M iddl e C l ass — The middl e class in the

.
,

view o f Marx ar e the su rvivor s of the once

,

p ower ful ind ep endent ent erp rising and useful

, ,

bur gher s or guildsm en of ear ly times : master

cr aftsmen and m er chants small p rop r ietor s ,

wor king in th ei r littl e shops side by side with

thei r j ourn eymen and app r entic es b efor e ma ,

chine ry and the industr ial r evolution came to

spoil the peace of th ese happy industr ial families .

But moder n equipm ent was exp ensive and

beyond the reach of most mer chants and manu
factu r ers so it gave a tr emendous advantage to
,

those fir st using it enabling them to accumulat e

,

much surplus value to p r oduce on a large scale

, ,

to sell ch eapl y and by the power of comp etition

, , ,

to kill off thei r weaker rivals Thus capital tends .

to be concentr at ed in fewer and fewer hands the ,

middle class is eliminat ed and the day of rev ol u ,

tion dr aws nea r In the Communist Manifesto

. ,

“
Mar x and Engels say : T he lower strata of the
—
middle cl a ss the small tr adespeople shopke ep ,

er s and r eti r ed t r adesmen gene r ally the handi

, ,

—
cr aftsmen and peasants all these sink gradually
”1
into the p r oletariat .

1C omm ni t M ni f to ( K
u s p bl i h ) p 23
a es er r , u s er ,
. .
176 ELIMI NATIO N OF T H E M I DD LE C LAS S

a ccount of the incr ease in land values which has ,

b een the far m owne r s chief sour ce of income dur

’

ing the past twenty or thirty year s Besides .

,

even poor farmer s like the pe asants of Eur ope

, ,

a re seldom r evolutionists and their so called ,

-

socialism is at bottom nothing mor e than mid

dl e class r adicalism
-
.

A good illustration of that is the rad ical legis

l ation passed in N ew Z ealand in the nineties and
after by the L iber al L abor P ar ty of B allance
,
-
,

S eddon and War d The small farmer s and the

.

agricultur al laborer s desiring to b reak up the,

great estates formed an alliance with the labor

,

unions and put thr ough a r ather startling p ro

gr am of legislation for thei r mutua l b enefit But .

when the small farmer s got what they wanted

they b roke away fr om the labor alliance and came
ou t in their t rue colo r s as faithful membe r s of

—
the middle class b ecause th ey had something to
l ose To the same class b elongs the r adicalism
.

of the G r ange r s the P opulists and the P r ogr es

,

siv es and even the fa rmer s of the N on P a r tisan

,
-

L eague who with all their exp er iments in state

,
“

”
capitalism desi r e littl e mor e than to share the
,

p r ofits of the big capitalists .

A gain there wer e in the year 1 9 1 0 no less

,

w
“ ”
than agricultur al laborer s most of ,

whom wer e farm er s sons serving thei r appren

’
,

ticeship and expecting to become tenants or o n

 ELIMI NATIO N O F T H E M IDD LE CLAS S 1 77

er s as soon as possibl e If to the total number

.

“
of fa rm er s plante r s and ove r see r s
, we add onl y
h al f of the agricultur al labor er s , with gar dener s ,

florists stock r ais er s and the like we have

, , ,

r oughly mor e than

, people of the farm
“
ing class about a fourth of all the gainfully em
,
”
ployed in the Unit ed States .

M a nu factu re — A furthe r examination of the

census r eports shows that the old middle class of
small merchants and manufacturers is still very
numer ous Fr om 1 9 00 to 1 9 1 0 the number of
.

mer ch ants and deal er s inc reas ed fr om to

“
and the number of manuf actur ers
”
and Officials increas ed fr om to
Closely connec ted with th ese are a number of
other occupations such as r estaur ant keepe r s
, ,

bank e r s and b roker s officials of banks and com

,

panics and so on a complete enume r ation of

, ,

whom would run the numb er of m erchants and

manufac tur er s very n ea r to
P rofessions a nd S kil l ed L ab or —Then there .

is a new middle class scarc ely existing a hundr ed

,

y ear s ago but now numb ered by milli ons They

, .

a re not usually ind epend ent p r op r i etor s like ,

w
farmer s or small me rchants but r ather people of ,

m edium incom es who enjoy a comfortabl e living ,

o n mor e or l ess p r op er ty and ar e not p r oletar i

,

ans in any s ens e of the wor d Such a re the so .

“
called p r ofessional peopl e including actor s , ,
178 ELIMINATIO N OF T H E M IDD LE C LAS S

architects a rtists clergymen dentists engineer s

, , , , ,

j ournali sts lawyer s lit era ry and scientific p er

, ,

sons musicians gover nment officials teach er s

, , ,

and pr ofessor s in colleges The total number of .

these accor ding to the census is

, of ,
“
whom p r obably a small minority ar e intellectual
r oleta rians
p .

B esides there are many well paid agents com -

,

mer cial tr avele r s heads of depa rtments buye r s

, ,

and salesmen Again ther e is an enormous.

,

numb er of small shar eholder s in manufacturing ,

mer cantile and financial corpor ations who as ,

indust ry becomes centr alized r ep r esent the de ,

centralization and di ffusion of own ership a ,

movement scar cely begun which may go far

towar d democr atizing and p opular izing big
busin ess .

Finally we have r ailway engineer s and con

,

du ctor s ca rpenter s b r icklay er s plumber s ma

, , , ,

chinists and many othe r unionized wo rke r s the ,

“ ”
ar istocr acy of labor whose wages are high er ,
“ ”
than the salari es of many soft handed wo rker s -
,

and who though wearing over alls at work are

, ,

w
not to be distinguish ed f r om oth er member s of
the middle class on Sundays and holidays .

M iddl e C l ass D omina nt — H o lar ge the mid

dle class all told actually is it would be hard to
, , ,

say but a r ough guess may b e made on the basis

,

o f the figur e s giv en by Wilfo r d I King I f . .

1 80 EL IMI NATION OF T H E M IDD LE CLAS S

the y are drifting towar d the p r ol etar iat to whom ,

they belong .

Thus the argument shifts fr om the physical to

the spi ritual plane as the middl e class physically
, ,

still on ea rth spir itually has passed away for

, ,

it has lost its soul Y et who can show j ust what

.

the middle class has lost or the p r oleta riat has

gained ?

S hr ewd as this argument is it is far fr om con ,

v incing for it is me r ely dispute about the use of

,

w
wor ds A lso it is a danger ous ar gument for
.
,

socialists to use becaus e it p roves too much If

, .

ther e is no ne middl e class th en the r e is a new

‘

p roletariat a p r oletariat of p r osper ous worker s

, ,

which i s a contr adiction in t erms Y et these .

nameless ones ar e a large and growing class who ,

having something to lose are likely to p r ove as

,

great an Obstacle to sociali sm as the peasants ,

the small far mer s or any other membe rs of the

,

ol d middle class .
 X I

THE M AR X I A N THE O RY O F THE

C LA S S S T R UGG L E

T he M arxian system is at bottom a phil oso

, ,

phy of history which is p robabl y the reason why

,

the higher c ritics of socialism try to distinguish

b etween essential and non essential doctr ines
-
.

O rthodox socialists say that not a single part of

the great stru cture can b e taken away without
w eakening or d est roying the whol e but the h ere ,

tics hold that the system is str engthened by re

moving the t emporary suppo rts which have ,

s er ved thei r purpos e and all owing the edific e to

,

s ettle upon its main foundation .

S O the r evisionists give up or explain away al

most all the Mar xian theori es but they still b e
,

li eve and t each that the ruling classes have always

gr ossly exploited the mass of people and that ,

thos e masses aft er long struggl e against fr ight

,

ful tyr anny are now app r oaching the day of their
,

r edemption . Wh eth er the r evisionists can thr ow

par t of the faith ov erboard and save the rest r e
mains to b e s een but th ei r candid admissions
,

se rve to nar r ow the fi eld of discussion and b r ing

181
1 82 T H EO RY OF T H E C L AS S S T R UGGLE

into bold relief their basic conception of human

l ife and hi story .

With a magnificent gestu re Marx and Engels

“
b egin the Communist Manifesto thus T he his "

tory of all hith er to existing society is the history

of class st r uggles F r eeman and slave patrician
.
,

and plebeian lor d and ser f guild master and

, ,
-

j ourneyman in a wor d opp r essor and oppr essed

, , ,

stood in constant opposition to one another ca r ,

r ied on an uninterrupted now hidden now Open , ,

fight a fight that each time end ed eith er in a

,

w
,

r evoluti ona r y r e constitution of society at lar ge

-
,
”1
or in the common r uin of the contending classes .

H egel and D a r in — A l though the th eory of

.

the class st ruggle did not or iginate with Marx

and Engels to them belongs the credit such as
, ,

it is of having taken it as the mast er key of hu

,
-

man history In this they followed H egel who

. ,

vi ewe d the univer se as the gradual unfolding of

id eas in a series of conflicts and comp r omises ,
“
exc ept that with Fechner and the oth er N ew
,
”
H egelians they r ever sed the p r ocess placing
, ,

the mate r ial univer se fi rst as det ermining alike

the char acter of man and the course of history .

This was befor e the time of D arwin who se ,

”
Or igin of Species appea r ed in 1 8 5 9 since when ,

socialists have t ried to r econcile the theory of the

class struggle with the D arwinian theories of the
C o mm ni t M ani f to ( K
1 u s p b l i h ) p 12
es er r, u s er , . .
1 84 T H EORY O F T H E CLAS S S T R U GG LE

such an assumption is demonstr ably false an d ,

with r espect to land he goes so far as to say :

“
Thus the intensive study of a single though ,

vast ar ea leads to an historical r econstruction

,

that di r ectly contr avenes the sociological dogma

of a p r imeval commu nistic tenur e This condi .

tion appear s not as a univer sal but as a highl y ,

spe cialized cas e as a late r ather than an early de

,
”
v el op m ent .
1

T heory of the O rigin of C l asses — As a matter .

of fact the Ma r xian th eo ry of the class st ruggle

,

is as imaginary as the fiction of p r imitive com

mu nism T he story r uns about as follows : Into
(
.

the communistic E den wh er e th er e is nothing ,

wor se than cannibalism and human sacrifice ,

comes the se rpent of p rivat e p r ope r ty after ,

which the re is slave ry exploitation class struggle , ,

and mea sm el ess agony for thousands O f year s

’

, ,

until at the end of the R oman Empi r e the an

, ,

tagonisms thus ar oused b r eak up the ancient

tyr anny and the ch aos of the D ark Ages takes
,

w
its place .

Th en gr adually the Feudal System arises at

’

, , ,

w
l east in weste rn Eur ope and a ne st ratification ,

is for med with ba r ons and high er cl er gy on top

, ,

a fe burgh er s and free t enants in the middle ,

and a gr eat mass of s er fs bound to the soil at , ,

the bottom T he class struggl e is r esum ed until

.
,

R H Lowi P i mi t i S o i ty p 2 33
1 . . e, r ve c e , . .
 T H E ORY OF T H E CLAS S S TR U GGLE 185

the powe r of the bar ons is b r oken the bourgeoisie ,

become str ong feudalism pass es away and th e

, ,

era o f mod er n comm e r cialism capitalism and , ,

wage slaver y is usher ed in .

Under capitalism the class stru ggle still goes

on but now the p r ol eta riat emancipated concen
, , ,

tr a ted in la rg e cities inc reasingly num er ous rnis

, ,

w
cr able and class conscious absorbs the middle ,

class and ma rches upon the str ongholds of capi

ta lism. Th er e the fe r emaining magnates ,

w
thinking to d efend th ems elves with th ei r tremen
dous engines of p r oduction are really diggi ng ,

thei r o n gr aves S ooner or lat er the rising p ro

.

l etar iat will sweep th em all away and after a , ,

time of tr ansition and r econst ruction will set up ,

I
the collective commonwealth the second E den , .

C ontradictory H istorical D a ta — This is far

too simple for the compl exity of social variation .

Even H M Hyndman the N estor Of B ritish

. .
,

S ocialism in T he Evolution of R evolution

,
“ ”

does not follow the st rict Marxian inter

g

p r eta tion .Whil e claiming that class st r uggles

have be en continuous in the evolution of w estern
society he is unable to show that th ey b r ought
,

about the t ransition fr om slav ery to feudalism or ,

fr om feudalism to capitalism .

Hyndman admits that forcible exp ression of

the class str uggl e such as the r eb elli on of R oman
,

sl aves an d gla diato rs neve r ac com l ish ed any

p ,
1 86 T H EORY OF T H E CLAS S S T R U GGLE

thing and that if they had succeeded sl ave ry

, , ,

and cir cuses would have gone on as before R o .

man slavery pass ed away he says ; because of the ,

scar city of slaves the lack of money with which

,

to buy them the incr easing cost of their keep

, ,

the increasing number of free farmer s coloni and ,

l abor e r s the cost of tr anspo rtation and other cir

, ,

cumsta nces which made slaver y unp r ofitable or

impossible .

Similar ly the r eb el l ion of ser fs unde r feu dal

,

w
—
ism the J acqu erie of 1 3 5 8 in Fr ance Wat T y ,
’
l er s r ebellion of 1 3 8 1 in England and the G er ,

man peasants ’
a r of 1 5 2 4 1 5 2 5 — had little to
-

do with the decay of ser fdom In fact serfdom .

,

pass ed over into free tenancy largely th r ough the

desir e of the landlor ds for money r ents in plac e
of su r ly se rvice r oyal taxation for fo reign wa r s
, ,

and othe r causes un relat ed to class struggle al ,

though in many cases the desir e of the s er f for the

fr eehold had its influence .

S tr a tifica tion i A l l S ociety

n — History r ecords .

numb erless and fear ful conflicts but sectional ,

r ath er than class st ruggles fill its pages F or the .

most par t it is clan again clan city against city , ,

nation against nation T ru e the re has been .

,

stratification in every society with fr equ ent con ,

fl ict of inter ests but int ernal t r oubles have been

,

kept down by the di r e nec essity of p resenting a

“
united fr ont against the exte rnal enemy High .
1 88 T H E ORY O F T H E C LAS S S TR UGGLE

tiona l struggle or a combination of both it is

, ,

har d to say A t any r ate th er e was no overturn

.
,

ing of p r oper ty r ights but r ather a shifting of ,

power fr om one gr oup of owne r s to another and ,

t he opening of the door by which new men en

tered the p r eviously exclusive upper class .

M odern C onditiona —i
f S O it is hard to fin d a
clear cut class struggle until the r ise of the mod
-

ern wor king class afte r the Indust rial R ev ol u

tion which began in England and soon sp r ead to

,

other countri es It was in England natur ally

.
, ,

that the first great labor agitation began the —

C hartist movement o f the thir ties and forties
’ "

which Mar x and Engels thought woul d soon l ea d

to a social r evolution T he Chartists p r opos ed
.
,

however only political r eforms the celebr ated

, ,

Six P oints which th ey failed to obtain al

, ,

though all but one have since been granted .

Since that time in eve ry capitalistic country

, ,

the wor king class has gr own in number s and

power as can easily be seen I n the gr eat labor
,

union movement the gr owth of socialist parties

, ,

the passage of many kinds of labor l egislation ,

an d the gr owing disposition of employer s to tr eat

thei r employees with considerationand r esp ect/If
—
fi

cy Unfu l fil l ed F or all that . ,

the mode rn labor movement does not seem to be

developing along the lines laid down by Marx .

In the fi r st place the middle class is not disap

,
 T H EORY OF T H E CLAS S S TR U GG LE 1 89

pearing but is r elatively incr easing and capital

, ,

ism by the infusion O f new blood fr om this source

,

and from the wo rking class is being str ength ,

ened even as the land owner s we r e r einforced b y

,
-

the bourgeoisie dur ing the Industr ial Revolution .

This p r oc ess corr espondingly r educes the fight

w
ing power of the wo rking class for its natural ,

leader s a re be ing constantly taken over by the

employer s as foremen manager s and o ner s , .

Besides many young and ambitious worke rs not

, ,

yet p romoted are not class conscious p r oleta rians

,
-

by any means but rather attaché s of the capital

,

ist class into which they hope to be admitted

, ,

sooner or later .

S econdly the wage ear ner s are not full y or

,
-

n i ed in any count ry and many if not most of

g a z , ,

thos e who are b elong to the aristoc racy of la bor

,

and have no revolutionary ends in vi ew At the .

p r esent time th er e are roughly or gan

, ,

ized and unorganized wage ear n ers in -

the United States T he Ame rican F ede r ation.

of L abo r with , member s in the year

1 9 2 0 is o rganized not for r evolution but for col
, , ,

l ectiv e bargaining which logically involves loyal

,

co ope r ation with the employe r s and due r egar d

-

for the inte r ests of p rivate p r operty .

T rue radical leader s like Will iam Z F oster

,
.
,

wish to conver t the A F of L to socialism but . . .

,

th ere is no immediate p r ospect of the success of

1 90 T H EORY OF T H E C LAS S S T R UGGL E

thei r endeavo rs The labor uni ons of E ur op e ar e

.

far mor e socialistic than those of the United

States as might be expected in vi ew of the r ela
,

tive over population of those countri es and the

-

l ack of oppo rtunity for the common man .

Thi r d there is among organized laborer s a no

,

table lack of unity or solidar ity an d much conflict ,

o f inte r ests between occupational gr oups The .

interests of coa l miner s r ailwaymen an d steel

,

worker s for example are b y no means in com

, ,
“

p l ete ha r mony and the,r e ar e vexed questions at

w
issue between b ricklayers carp enter s plumbers , , ,

and other membe r s of the building tr ade s"

I ndee d it often looks as though the figb ear n
,
-

ers of pa rticular indust ries such as t he r ailways , ,

ha d more in common with the employe r s than

with wage earner s of other gr oups A lso the r e
-
.
,

a re se rious conflicts of inte r est between the skilled

an d unskilled worker s in every trad e as is clear ly ,

seen in the disputes between the r ailway section

men an d the aristocr atic enginee r s and con
du ctors .

T he T rip l e A l liance in E ngl and

oup — The gr

conflicts of the working class are well illustr ate d

in Great B ritain by the notorious T r iple Alliance
Of coal miner s railwaym en and t ransport work
,

ers which at one time r ec ently s eemed to have

, , ,

the countr y by the thr oat and to b e holding up , ,

not the employe r s only but their fellow workers

,
-
1 92 T H EO RY OF T H E CLA S S S T R UGGLE

is an att empt to find a r ational b asis for the class

st ruggl e and the soci a l r evolution That basis is
.

the closely knit seri es of p r opositions the -

theor i es of value surplus value incr easing mis

, ,

ery and the r est — which have so often been

weighed in the balance and found wanting A s .

none of these a r e theo r etically sound the so call ed

,
-

r ational basis is a myth an illusion

, and if the
,

class struggl e goes on to the bitter end as it may , ,

with the Ma rxian conditions unfulfilled it must ,

b e b ecau se man is not p rimarily a r ational animal .

 w
THE S O C I AL R E V O L UTI O N

No comes the final act in the d r ama of eco

nomic dete rminism when the last of the antagon
,

isms that have convulsed the wor ld since the time

o f p r imitive communism is about to cause the col

laps e of capitalism and to clear the way for the

communism that is to b e T o this all the th eor ies
.

of Ma r x lead st ep by st ep ; h ere all the lines of

,

argument converge This is the day of wr ath

.
,

when j udgment shall be p r onounced and exe

cu ted upon capitali sm and all its wo r ks Thi s is
.

the day of emancipation that is to ushe r in the

millennium of the p r oletar iat .

Karl Marx like J ohn the Baptist was a voice

, ,

crying in the wildern ess denouncing the wicked

,

ness of his day p reaching r epentance and p roph

,

esying d eliver ance D oubtl ess he was a r ev ol u

.

tionist by temp er ament befo r e he was eithe r

j urist historian or economist and he us ed the
, ,

resul ts of all his studies to illustr ate and r einfor ce

his faith .

L ike many of his contemporari es Marx was ,

“ ”
very conscious of the r ec ent bourgeois r ev ol u
193
1 94 T H E S O C I AL REV OLUTIO N

tion and felt that a revolution of the wor king

,

clas s might not be far away The C ommunist .

Manifesto ( 1 8 4 8 ) was a call to ar ms and it is ,

clear that the wr iter s expect ed the social r ev ol u

w
tion to come ve ry soon L ater in life they saw .

“
their mistake In 1 8 9 5 Engels wr ote : History
.

p r ov ed that we wer e wr ong — e and those who

like us in 1 8 4 8 awaited the speedy success of

, ,

the p roletar iat It became pe r fectly clear that

.

economic conditions all over the C ontinent w er e

by no means as yet su flicientl y matured for su
s ed in the capita l ist o rga ni zation of p r oduc
p er g
”1
tion .

M ethod of the R evol u tion — However one ,

must not lay too much str ess on all the mistakes
o f Mar x A s B oudin says time has little to do
.
,

w
with the validity of his a rgument S ocialists ar e .

eager souls hoping to see the r evolution with

,

thei r o n ey es and r eluctantly admitting that , ,

in the long p r ocess of evolution a thousand year s ,

are as one day .

But what of the metho d of re v olution and how

is the collapse of capitalism to come about ? Will
th ere be a gr eat industrial c risis national or in ,

ter nationa l ? Mar x and Engels thought so but ,

the higher cr itics now admit that this theory was

unsound and that the b r eakdown of capitalism
,

E ng l
l E inl i t ng
e s, K / l M
e uDi Kl nh éimp f
eu inar a rc s
’
e a sse e

F a nk i h 18 4 8 185 0 C f S imkh it h M a xi m S o al
o

r re c -
. . ov c ,
r s v er su s ci
,

i m pp 2 8 2 53
s , .
, .
1 96 T H E S O C I AL REV OL UT ION

Economy ( 1 8 59 ) Mar x r eve rts to the logical

position of economic determinism in the oft

w
“
quoted sentence : N o social or de r ever disappear s
b efor e all the p r oductive for ces for which th ere ,

is r oom in it have developed ; and ne and high er

,

r elations of p r oduction n eve r appea r b efor e the

w
mater ial conditions of thei r exist ence have ma
”
tu r ed in the womb of the old society
1
.

D a r inism a nd M a mt O bviously ther e is a -

,

cont r a diction b etween the views of the earli er and

the late r Mar x or r ath er betwe en the two sid es
, ,

of his dual pe r sonality This became mor e glar .

’
ing aft er the appearance in 1 8 5 9 of D a rwin s , ,

epoch making book The O rigin of Speci es

-
“
,
”
,

which cl early taught that in biological evolution , ,

at least new forms developed by slow co ntinuous

, ,

change along div erging lines without leaping ,

for war d backwar d or sideways and without any

, ,

episode in their evolution that coul d b e call ed a

r evolution .

Y et Mar x an d most of his follower s in the u n ,

scientific spi rit of the Hegelian logic find an ,

apparent r econci l iation of the contr adiction in

the l ife history of plants and animals Gr adual
-
.

development goes on for a while an d then by , ,

a sudden catastr oph e or r evolution the s eed b e ,

comes a seedling the C hrysalis a butterfly the , ,

Ma x A C ont i b t ion t th C i t i q e f Political E on my

1 r r u o e r u o c o ,

T at y on
,

p. 1 2 .an l d br Ns 1 S t e e . . .
 T H E S O C I AL REV OL UTION 1 97

egg br eaks and a chick appear s the emb ryo ma ,

tur es and a child is born .

It shou ld not be necessary to say that analogies

such as these p r ove nothing with r egar d to the
possibility of r evolution in biological or social
evolution The life history of an individual re
.

p e ats the history of every other individual of the

same species M etamorphosis and birth are not
.

biological r evolutions but as Engels puts it are , , ,

“
examples of nature moving in the eternal one
”
n ess of a p erp etually recurr ing ci rcle .

This is but a single illust ration of the fact th at

scientific sociali sm gains no support by appeal
ing to modern science in general and biology in
particular as the m ethod and a ims of socialism
,

and sci ence a re wide apar t Vebl en him self a .

,
“
kind of sup er Marxist rightly says : The fact
-
,

that the th eo r etical str uctur es of M ar x collapse

wh en th ei r el ements ar e converted into the t erms
o f mod er n sci enc e sho ul d of its elf be suffici ent

p roof that those structures were not built by th eir

maker ou t of such el em ents as mod ern sci ence
”
habitually makes use of .
1

B iol ogical a nd S ocia l E vol u tion — Biology ,

ther efor e giv es no suppor t to Ma rxism but pos

, ,

sib l y histo ry and sociology may hav e som ething

bett er to o ffer C ertai nl y social evolution is

.
,

1 Tho t in V bl n T h P l a f S i n in M od n C i i l i a
rs e e e e ce o c e ce er v z
tion p 4 37
,

. .
,
1 98 T H E S O C I AL REVO L UTIO N

mor e r apid than biological evolution The hu .

man body has scarcely changed sinc e the time of

pr imitive man but economic politi cal r eligious
, , , ,

and oth er social customs and institutions have

changed very much Also social movement may
.
,

be acceler ated as in the ninet eenth c entur y when

, ,

wester n Europe mad e gr eate r p r ogr ess in ma

ter ia l civilization than during the p r eceding fi f
teen c enturies .

Again a tr ansformation may be so complete

,

as to amount to revolution The P r o t estant R ef

.

ormation was a r e ligious r evolution The gr eat .

inventions of the eighteenth and nin eteenth cen

tu ries b r ought about an industr ial r evolution .

T he social and political powe r of the land ed aris

tocra cy of Eur ope has been supplanted to a ,

w
gr eater or l ess extent by the pow er of m anu fac
,

tu r er s and me r chants — in F r anc e by a sudden

and Violent upheaval in England by the slo
,

and peaceful methods of constitutional govern

m ent The Amer ican R evolution on the other
.
,

w
hand was no r evolution at all but a political
, ,

secession .

H o R evol u tions H a ve O ccu rred — T he

Marxian conception of revolution is intimately
connected with the doctrin e of economic det er
minism and the class struggle The social r ev ol u .

tion accor ding to Mar x is the class stru ggle

, ,

“
r aised to the highest pow er It is a more or les s .
2 00 T H E SO C IAL REVOL UTIO N

er s by the bourgeois i e as a fusion of the two into

a larger and mor e power ful capital ist class .

hI a rar s P r op hecies N ot F u l fil l ed
’
— U p to the
p r es ent time society has obstinately r efused to
divide itself into two gr eat hostile camps as re
qui red by the theory of the class st ruggle O ne .

“ ”
may think of people as divided into the haves
“ ”
and the have nots but that is not to say that
-
,
”
all the haves are suppor te r s of capitalism or
“ ”
that all the have nots would like to see it de
-

str oyed The line u p of int er ests and opinions

.
-

in the intricate n etwork of industrial relations is

by no means so simpl e .

In other respects too the conditions laid down

, ,

w
by Mar x as p r eliminary to the fi nal r ev olution
have not been fulfill ed In no capitalistic coun .

try befor e the ar was the miser y of the wo r king

class incr easing either absolutely or r elatively

, .

The middle class was not being eliminated but ,

incr easing in numb er s wealth and influence ,

.

Concent ration of capital had not p r oce eded a c

cor ding to the Mar xian p rogr am and di ffusion ,

o f owne rship seemed likely to count er act the con

centr ation of wealth In b rief the evolution of

.
,

capitalism was not going as Marx wished and

exp ecte d when he wr ote
, in the fir st volume of ,
“ ” “
Capital ( 1 8 67 ) Centr alization of the means
o f p r oduction and socialization of labor at last

r each a point wh er e th ey b ecome in compatible

 T H E S O C IAL REVOLUTION 20 1

with their capitalist integument This integu .

ment is bur st asunder T he knell O f capitalist .

p r ivate p r op erty sounds The exp r op riato rs are .

”1
exp r op r iated .

C ap ital ism E vol u tionary — Here is another

misl eading biological analogy involving a curious ,

misconception of the nature and functions of

capitalism based as it is on the institution of p ri
, , ,

vat e p r op erty Capit a lism is no mer e sh ell or

.

integument within which ce r ta in evolutionary

,
“ ”
changes go on until th ey ar e ripe for rev ol u
tion It is the industrial organization its elf the
.
,

vast mechanism of p r oduction which creates all ,

goods and se rvices and daily feeds clothes and

, ,

sh elter s hundreds of millions of p eopl e with a ,

d egree of comfor t unknown to the wo rking cla ss

of any p revious time or inde ed to most of the , , ,

a ristocr ats .

St ru ctural changes take place within this or

g a n iz a tion o,f cour s e b ecau se it
, is liv ing gr owing ,

and adapting its elf to the changi ng conditions .

Ind eed it is fa r more elastic and adaptable

,

than any living organism as may b e se en by ,

consid ering the evolution of capitalism in Eu rop e ,

America and elsewh ere dur ing the past hundred

y ear s .

In that time the population of all capitalistic

countries has enormously inc reased ; stand ar ds
C ap i ta l p 78 9
1
, , .
202 T H E S O C I AL REVOL UTION

of l iving have r is en ; the wage earner s have b e -

come educated ambitious and di scont ented ; new

,

l ands have been opened up ; gr eat indust r ies and

works of engineer ing have been created ; govern
ments have become mor e democr atic ; laws and
cu stoms hav e changed ; business organization has
~

r eached a high d egr ee of pe r fection ; and finally , ,

business men thems elves have become more com

petent mor e consider ate Of their employees more
, ,

r espectful to the public and in gener al mor e

, , ,

r eady to accomm odate themselves to the chang

ing envir onment How then can capitalism be

.
, ,

thought O f as a r igid form or fette r or shell or

, , ,

w
integument that must b e b roken befor e any new
and better social or der can take its place ?

P rop hecy of F inal O verthro — I n View of .

the fact that the evolution of capitalism has not

p r oceeded along Ma rxian lines inasmuch as the ,

conditions p r eliminary to r evolution have not

been fulfilled the p r ophecy that the working
,

cl ass will take over all the means Of p r oduction

is nothing but a shr ewd guess posing as a scien
tifi c demonst r ation With far gr eater p rob abil
.

ity one might hazar d anothe r guess to the effect ,

that the magnates of capitalism r einfo rced by ,

the middle class and a large section of the wage

earne r s will be able to maintain the p resent in
,

du strial or de r in all its essential featur es for a

, ,

l ong time to come .

 204 T H E S O C I AL REVOL UTION

employing c l ass have something in common .

Thi s is a basic p r inciple upon which enl arged ,

and str engthened may be b uilt the temple of co

,

oper ative capitalism

I f one may j udge by what has happened in
many so called r evolutions economic political
-
, ,

and r eligious the capitali st class r ep enting of

, ,

thei r sins will set thei r house in orde r and will

,

make fr iends of many of their former opponents .

They will be able to p r ove to the mor e comp etent ,

at least of the wage earner s that they have much

,
-

to lose and nothing to gain by a social r evolution .

In other wor ds they will set in motion a counter

,

r evolution which will p ostp one the threa tened

,

re volution of the p r oletariat or make it forev er ,

imp ossible .

—
R eason or P assion? A n alte rnative p rophecy
like this assumes of cour se with Ma rx and most
, ,

o f the r evisionists that man is a r ational animal

, ,

that t ruth is t eachable and that people individ , ,

na ll y and collectiv ely may be wisely l ed

, These .

a r e la rge assumptions which history does not al

,

together j ustify I t may be that men are gov

.

é i fl ed chiefly by emotion and passion that envy

’
’

and j ealousy blind the eyes of r eason that in ,

th ei r ever expanding desi res they cannot b ear to

-

be thwarted and that in fanatical frenzy or child

, ,

ish p etulance they may destr oy what they can

,

neve r recr eate .

 T H E S O C IAL REVOL UTION 20 5

All this is mor e less plausibl e but it is not

or ,

accor ding to the lat er and saner Marx The .

great anar chist Bakunin might have sanctioned

it or the syndicalist Sor el or the I W W
, , . . .

l eader Bill Haywood or the philosoph er B erg

, ,

son or the psychologist F reud or the sociologist

, ,

Veblen or the revolutionists L enin and T r otsky

, .

It agrees with r evolutionar y t err orism and sa ,

b otage and the gene r al st rike and a strike in coa l

, ,

mining t r ansportation and oth er basic indust ries

, ,

and with Bolshevism and the ea rlier Marx but it ,

is out of harmony with economic determinism the ,

evolution of r evolution and all the cha r act eristic

,

w
“ ”
dc rines of sci entific socialism .

'
“
Scientific socialism must b e j udged by its
o n standa r ds as a r ational syst em consisting of
,

a logical s er i es of p r opositions d erived fr om cer

tain p r emises If the p r emises be disp r ov ed the
.
,

whol e syst em falls to the gr ound and cannot b e

r eviv ed by the inj ection of any for eign stimulant .

F or this reason the r evisioni sts or high er c ritics ,

o f socialism having abandoned Mar x a re not

, ,

very sur e of anything exc ept that th er e is no

solid gr ound b eneath th ei r feet In this unstable .

condition th ey cannot well r emain so th ey must ,

—
go forwar d or backwar d for w a r d towar d emo
tiona l un r easoning r evolutionism or backwa r d
, ,

towar d a qualified suppor t of capitalism coupled ,

20 6 T H E S O C IA L REV OL UTIO N

with a faint hop e that society will be ripe for col

l ectiv ism at some futur e time
In this latter position most of the r evisio nists
now stand and ther e is little di ff e rence between
,

th em and the or dinary p r ogressive sociologists or

social r eformer s who know that R ome was not
,

b u ilt in a day but who will do all they can to

,

mold and r enovate society after the pattern of

the ideal state .

E motion a l ists Ther e are those however

.
-
, ,

who con scious that Marxism is withou t r ational

,

basis continue on the r oad to r evolution because

,

they fe el that it satisfies th eir emotional and ideal

istic natur e which in the final t est th ey hold to
, , ,

be the only true guide C oncentr ating their at .

t ention on the evils of capitalism they are fille d ,

with rage an d would d estr oy it with slight com

punction Fixing th ei r ey es on the beauties O f
.

w
the new socia l or der they a r e lost in faith an d
,

hope and forgetting the difficul ties and danger s

, ,

of the way they r ais ethe banne r of a hol y ar

—a children s crusade
,
’
.

It is surp rising how many r evolutionar y lea d

er s a r e of this emotional imaginative id ealistic , , ,

impulsive type an d what a st r ong appeal they

,

make to the p opular m ind al ready p r epar ed for ,

thei r suggestions by pover ty sympathy disap , ,

pointment envy ambition and all the instability

, , ,

o f temp er ament that leads m en to emb r ace a new

 X III

B O L S HE V I S M O R THE D I C T A T O R
S HI P O F THE C O MMU N I S T
PAR T Y
T he striking phr ase di ctator ship of the p ro le
”
tariat was coined by Kar l Marx hims elf in the
"
y ea r 1 8 7 5 when in a,now famous lette r h e w r ot e :
“
Between capitalist and communist society lies
the pe r iod of the r evolutiona ry t r ansfor mation
of t he one into the other T hi s r equi res a political .

t ransition stage which can be nothing less than,

the r evolutionary dictator ship Of the p r ole

” 1
tariat .

In the C ommunist Manifesto the same idea

“
was exp r e ssed in other words thus : The p r ol e
tariat will use its political sup rem acy to wr est ,

by d egrees all capital fr om the bourgeoisie to

, ,

c ent r alize all instruments of p r oduction in the

hands of the stat e i e of the p r oletaria t organ , . .
,
” 2
ized as the r uling class .

The Communist Manifesto gives also a for e

cast of the measur es which the p r oletariat of the
L tt f Ma x to B a k Ma 15 18 75 C i t d by L nin
o l tion p 8 8 nS p a go T h G a t t F ai l
1 e er o r r c e, e e
, . ,

Th S t t
e a nd R
e a ev u r e re es ur e
i n A l l H i to y p 35 5
,
. .
,

s r

C o mmuni t M anif to ( K p b l i h ) p 40
. .
,
2 s es er r , u s er . .
,

208
 D I C TAT ORS H I P or C OMMU N I S T PARTY 20 9

most advanc ed countries will take including ,

abolition of p r operty in land abolition of the ,

r ight of inh er itance confi scation O f the p r op er ty

,

o f emigr ants and r ebels cent r alization of cr edit

,

and tr ansportation in the hands of the state ex ,

tension of stat e own er ship of factor ies equal ,

liability of all to labor the establishment of in

,

du stria l armies and fr ee education of all children

,

in public schools .

The p rogr am itself is very simpl e and dir ect ,

and the re is little disput e about it in Ma rxian

cir cles but as to wh en and how the dictatorship
,

shall be set up and wh en and how it shall b e dis

,

plac ed by communism pure and simple there is ,

w
much di ffe renc e of opinion d egener ating at tim es ,

into veh ement debate and bitt er pe r s ecution .

“
T he Yel l o s a nd the R eds
” “
— S ocialists of .

the chai r the p ul pit and the parlor wishing to

, ,

make the thought of revolution palatable to the

bourgeoisi e usually foll ow the later evolutionary
,

Mar x in teaching that the social revolution can

not come until al l things a re r eady ; and that if ,

br ought on too soon it must p erish as an u m

,

t imely bi r th And wh en in the ful ness of time

.
, ,

“
the r evolution gently arr iv es the immense ma ,

j y
”
or it of th e p r ol eta r iat will set up a
, dictato r

ship that will not be a dictator ship as it will b e ,

d emoc r atic in all its ways .

But the evolutionists the parliamentarians the

, ,
210 D I C TATORS H I P OF C OMMUN I S T P ART Y
cooper ator s the Fabians the guildsmen an d the
, , ,
“ ” “ ”
r est of the good or yellow socialists have ,

by no means accept ed the whole of the Marxian

gospel and the revolutionary violent faith of
, ,
“ ”
the reds which they have r ej ected now holds
, ,

chief place in the c reed of the C ommunist P arty .

N or is it st r ange that the mor e ar dent souls

embr ace a mor e militant creed for soci alism with
, ,

its fier ce denunciation of the p re sent world an d

w
its glowing p ictur e of the wor ld to come makes ,

so strong an appeal to the p r imitive instincts of

man that the wonder is ho any of its votar ies
can await p atiently the long expected day or -
,

keep themselves in thought and action within

, ,

the bounds of reason .

The cont radictions in the opinions and actions

of Marx him self are so glar ing that it is imp os

sible to draw a clear line of demarcation placing ,

all the evolutionary parliamentary Marxists on

,

the one side and all the r evolutionary di rect ac

,

tionists on the othe r C ertainly the syndicalists

.
,

do not wish to be e x communicat ed for distrusting

pa rliamentary a ction and favoring the gener al
strike nor do the Bolshevists think that they
,

deny Marx wh en they call th emselves commu

nists set themselves at the head of the p r oletar iat
, ,

and p r op ose to march di rect from E gypt to the

Pr omis ed L and without going thr ough the wil
d erness of capitalism H owever th ey admit tha t
.
,
2 12 D I C TATORS H I P OF C OMMU N I S T PAR TY
exce ed 5 p er cent of the population leaving an ,

upper and middle class of about 1 0 p er cent I n ,

clu ding the land owning aristocr acy the O flicial s

-
, ,

the p r ofessional people and a consider able num

,

b er of manufactur er s and me r chants .

C apitalism had b egun in Russia but it had not ,

gone far ; and it is no wond er that socialists b e

came discour aged or impatient as they looked ,

forwar d to long year s of industrial evolution

b efor e the middle class should ris e fulfill its his ,

toric mission and pass away ; before the peasants

,

should be exp r opr iated ; and the p r oletariat at ,

“ ”
last comp r ising the immense maj orit y of t he
p eople should be r eady for r evolution Inde ed
, .
,

the outlook was hop el ess fr om thei r point of View ,

“
for as Be rnar d Shaw r ecently said :
, If social
ism is to wait until fa rmer s become class con -

”1
scious Marxists it will wait for ever
, .

But many of the R ussian socialists di d not

want to wait and easily p er suad ed th emselves
,

that the r evolution might b e b r ought about by

the industr ial wo rker s fighting as the vanguar d
o f socialism a so rt of Gideon s B and who would
’

, ,

be followed as lib er ator s by the poorer p easants

, , ,

th en by the middl e peasants aft er which ther e ,

would be no class able to withstand the United

w
ar my of the p r ol eta riat .

1 B na d S h aw T h O l d R l ti ni t nd th N
er r e evo u o R l s a e e evo u

tio n T h Na t ion ( Lon don ) Ma h 12 1 92 1 p 704

,
“
. e ,
rc , , . .
 D I C TATORS H I P OF C OMMU N I S T P ARTY 213

Writing shor tly after the abortive r evolution

of 1 9 05 and looking forwar d to the next rev ol u
,

tion L eon T r otzky ( B r onstein ) then an inter

, ,

national Menshevist said : ,

“
O nce the p r oleta riat becomes master Of the
situation conditions will imp el the p ea sants to
”1
uphold the polici es of a labor d emoc r acy .

T r otzky th en freely a dm itt ed that the indus

t rial p r ol eta riat howeve r gr eat th ei r faith and
,

cour age could not stand alone but must r eceive

, ,

sp eedy aid fr om the Russian p easants and fr om

w
a p r ol etarian r evolution in oth er countries else ,

it would soon collapse 2

.

T o R evol u tions E xp ected — Russian social

ists have always had two r evolutions in mind
a bou rgeois or mid dl e class r evolution which -

should over thr ow the power of the Czar the a ris ,

tocra cy and the bu r eauc r acy and a p r ol eta r ian ,

r evolution following soon er or lat er aft er that .

N atur ally th ey woul d h elp the mid dl e cla ss in

,

w
the fi r st r evolution though fully intending to ,

tur n against th em in the s econd .

It as a question howeve r whether the social , ,

ww
ists should try for a p r oletarian r evolution soon
aft er the bourgeois r evolution or wait until Rus ,

sia which a s back ar d indust rially had b ecome

, ,

a fully develop ed capitalistic country This was .

1 L on T ot ky O R o l t ion ( ol l t d t an l at d nd d
e r s ur ev u c ec e r s e a c
O in
, ,

it d b y M i
e
y J l
o ssa
g ) p 10 0
e
I bi d p 144
. . .

2 .
.
, .
214 D I C TATOR S H I P OF C OMMU N I S T P ART Y
p r obably back of the fateful dis ruption of 1 90 3
in the S ocial D emoc r atic P arty when the B ol ,

shev ists under the leade r ship of L eni n Ulia

, (
nov ) stood for methods of conspiracy in r evo
,

l u tionary tactics and a p arty organization closed

,

to all but p r ofessional r evolutionists ; while the

“
Menshevists including most of the intelligent
,

w
”
sia favored mor e open political tactics and a
,

part y o rganization admitting a ll sympathize r s

i th the S ociali st cause In other wor ds the
.
,

“ ”
B olshev ists wer e the close communionists of

w
the social r evolution .

B oth L enin and T rotzky took par t in the r evo

l u tion of 1 9 05 following the disastr ous ar with
,

J apan and in the gener al str ike of O ctober

, ,

which compelled the C zar to p r omise a constitu

tion and to convene the fir st D uma D ur ing the .

’
gener al strike the fir st C ouncil of Wo rkmen s
D eputies was forme d in S t P ete r sburg to act .
,

as the center of the r evolution and to be the

nucleus of a r evolutionar y labor gove rnment .

Similar councils sp rung up in many other in

du strial center s b u t all w er e dispe r sed as soon
,

as the government began to get the upper hand .

For ecasting the cour se of the next rev olution ,

“
T r otzky said in 1 9 0 8 :
,
The fi r st new wave of
the r evolution will lea d to the creation of soviets
all ove r the count ry A n All Russian S oviet
.
-
,

organiz ed by an A l l R ussian L abor C on gress

-
,
216 D C I TAT OR S H I P OF C OMMU N I S T P ARTY
autocracy was gone O n March 1 5 the C zar
.

abdicate d .

A s T rotzky ha d p re dicte d informa l commit

,

tees or councils or soviets wer e immediate ly or

g a nized fi r
, st among the wo r km en o f P et r og r ad ,

then among the soldier s and sailor s and p r esently ,

a mong wo r kmen and peasants eve rywhe r e The .

P etr ograd C ouncil of Worker s D eputies took ’

th e lead with T chcheidze a S ocial D em oc r at as

, , ,

Pr esident and Kerensky then a member of the

, ,

L abo r P ar ty as V ice P r esident The D uma

,
-
.
,

failing to p r eserve the monar chy organized a ,

p r ovisional gover nment under P rince L vov an d ,

began to arr ange for the election of a C onstituent

A ssembl y .

A fter that the country drifte d with a du al gov ,

ernment and no st r ong pe r sonality to take the

,

lead T he weakness of the mid dl e class was re

.

fl ected in the va cillation of the D uma and the ,

intoxi cation of the masse s in the disor derly

behavior of the soviets .

A N ational Congr ess of Worker s and S 0 1 ’

die r s D eputies was call ed on Ap r il 1 6 ; an A ll

’

Russian Congr ess o f P easants met in P etr ogr a d

on May 1 7 a nd anothe r A ll R ussian C ongress -

opened on J une 2 2 r esulting in the election of

,

the All R ussian Council of Worke r s

’ ’
-
S oldier s ,

and P easants D eputi es with an Executive C om

’
,
 D I C TA TORS H I P or CO MMU N I S T P ART Y 217

mittee mor e power ful than the Provisional GO V

ernm ent itself .

With all this there was much disord er with ,

infinite variety of opinion and incessant debate ,

while military di scipline was r elaxed soldier s and ,

sailor s deserted worker s took contr ol of factori es

, ,

and p easants seized and divide d man y of the

great estates .

B olshevists S ecu re C ontrol — M eanwhi l e the ,

w
mor e r adical elements gained contr ol in the
D uma and in the soviets The middle class cabi.
-

net O f Pr ince L vov and P r ofessor M iliu k ov a s

r eplaced by that of Ke r ensky whos e dr amatic ,

career lasted until the N ovember revolution The .

soviets passed fr om the contr ol of the Social

R evolutionists and the M enshevists into the
hands of the B olshevists who had a more d efinite
,

p r ogram in mind .

Hearing that r evolutio n was impending the ,

exil es gathe r ed fr om Siber ia and fr om fo r eign

lands With the connivance of Germany wish

.
,

ing to foment more tr ouble L enin and about one ,

w
hundred r evolutionists of various factions came
fr om Switzer land in a sp ecial t r ain T rotzky .
[

sailed fr om N e York was detained for a t ime

,

in Halifax but released at the request of P r o

, ,

w
fessor M il iu k ov he made his way to P et r ogra d
,

to play his part in the p rol etarian r evolution .

The ar wen t on more disastrously than ever ,

218 D I C TATORS H I P OF C OM MU N I S T P ARTY
until the Germans were at R iga a lmost within ,

striking distance of P etr ogr ad The Kerensky .

government could not handle the situation and ,

ther e was fear of r eaction especially after the ,

futile revolt of Gene ral K ornil ov on S eptembe r ,

9. The Pr eliminary P arliament which met on ,

O ctobe r 8 passed a vote of confidence in the

,

Kerensky ministry though by a small maj ority

, .

B efor e that the B olshevist member s numbering ,

5 3 ou t of 5 5 5 delegates had left the P a rliament

, ,

p r otesting that it favor ed the bourgeoisie .

Then the B olshevists th r ough the P et rogr ad

,

Soviet seeing their opportunity determined to

, ,

make a great str oke by seizing the p olitical

,

power in the name of the R ussian p roletariat .

O n N ovember 4 they organize d a great demon

stra tion in the st reets of P et r ogr a d when the ,

people clamor ed for peace for b rea d for the , ,

“
downfall of Kerensky and for all p ower to the
”
soviets .

T he C oup d eta t —’ ’

Then came the coup

.

”
d etat of N ovember 7 ( O ctober 2 5 ol d style )
’

, ,

wh en the B olshevists with the help of detach

,

m ents of soldier s an d sailor s surr ounde d the ,

Winter P alace arr este d th e p r ovisional govern

,

m ent and declared Ke rensky who had escaped

, , ,

an o ffend er against the state In a similar man .

ner th ey sei zed the political contr ol which they ,

have held b y force until the p resent time Thus .

2 20 D I C TATO RS H I P OF C OMM U N I S T P AR TY

T he C entra l E xecu tive C ommittee .

—
Accor d
ing to the Constitution the All Russi an C on ,
1
-

gr ess of S oviets is the sup r eme power and is con

v oked by the E x ecutive C ommittee at least twice

a year This congress number ing about

.
,

member s is composed of r ep resentatives of the

,

urban soviets ( one d elegat e for voter s ) ,

and p r ovincial congr esses of soviets ( one delegate

for voter s ) The city p r oletariat a re
.

thu s given p r edominant p owe r .

The executive power is in the hands of the A ll

R ussian C entr al Executive C ommittee of not ,

mor e than 200 membe rs el ected by the Congress , ,

which again el ects an inner ci r cl e of 1 7 member s

the C ouncil of P eople s C ommissa r s The whole ’
.

or ganization is contr oll ed b y the C ommunist

P arty an exclusive organiz ation Of some
,

men and women chi efly industrial worke r s with

, ,

r elatively few int ellectuals : daring devoted , ,

r uthless fanatical conspi r ator s the backbone of

, ,

the r evolution The dictator ship then is in the

.
, ,

hands of a fr action of the urban p r oletar iat a ,

“
minority of a minori ty B r ailsfor d says : With .

the soviets the tr ade unions the coO p erativ es and

, ,

the army under its contr ol the C ommunist P ar ty ,

commands the whole organi zed life in Russia ” 2

w
.

R ian do m nt t N 136 Ma h 19 19 P bl i h d by

w
1 u ss cu e s, e c O rc u s e
A m i an A o ia t ion f Int nat ional C on i l iation N
.
, , .

the er c ss c or er c e
Yo k C i ty
,

r
11 N B ai l fo d in T h N R p b l i D 2 2 1 9 20
.

2 . . r s r e e e u c, ec
, .
, .
 D I C TATORS H I P O F C OM MU N I S T P ARTY 22 1

T he P ea santry — A fter the Mar ch r evolution

.

the p easants who already owned over 60 p er

,

c ent of the land s eized much of the r emaining

,

l and and divided it among themselves T he P r o .

visional Gover nment was ca refully p r eparing a

comp rehensive land act but the Bolshevists cut ,

the t angled knot by the decre e of N ovemb er 7 ,

1 9 1 7 announcing the confiscation of all landed

,

esta tes yet l eaving the peasants in undistu rbed

'

poss ession of the land they had seized Complete .

socialization of land was p rovided in late r decrees .

A ft er this for a time the peasants soviets wer e

, ,
’

r ecogniz ed by the Communist government as the

foundation of the whole system of agr icul tural

p roduction and as the basic units of government
in the rural dist ricts .

But soon the p easants sovi ets p roved far fr om ’

satisfactory at least fr om the national point of

,

Vi ew as th ey cared only for local inte rests and

,

held their gr ain at exo rbitant p rices The Food .

Commissar s int ervened with the help of the poor ,

e st peasants o rganiz ed into Committ ees of the

,

P oor by dec ree of J une 1 1 1 9 1 8 and thus re , ,

du ced the power of the soviets especially wh ere ,

th ey were cont rolled by the r ich or the middle

peasants who wer e hoar ding gr ain
, .

L ater the Bolshevists tri ed to conci l iate the

,

middle p easants and even p r omis ed to l et the

,

rich p easants alon e if th ey would refr ain from

,
2 22 D I C TATOR S H I P O F C OMM U N I S T P AR TY

w
counter revolutionary tendencies But neither
-
.

p r omises nor th reats could make the peasants

pa rt ith thei r p r oduce at legal p rices except ,

when r equisitioned by the government Also the .

,

seizing of p r oduce and the bad treatment of the

r ich and middle peasants r educed the surplus ,

decr eased p r oduction and caused food to rise to

,

famine p rices In these and other ways the

.
,

p easants as Marx had for eseen and as T r otzky

, ,

had specifically p rophesi ed p r oved the greatest ,

stumbling block in the way of communism

-
.

The Russian peasants in thei r newly won l ib,

erty may have been peculia r ly intr actable

, but ,

certainly the B olshevists with thei r tr aditional ,

dislike of all peasants especially the more p r os

,

p ero u s have
, sa dl y mismanaged the whole agr a
rian p r oblem A s early as J uly 2 1 9 1 9 an
.
, ,

Am erican r ep res entative r eported as follows

“
The agricultur al situation is d esper ate All .

’
farm equipm ent stolen fr om the landlor ds es
tates at the beginning of the r evolution is now
spoiled and ther e i s no one to r epair it and it ,

would not be of much u se anyway as there are , ,

no se eds and per sons poss essing do not intend

,

w
sowing th em but try to sell them on the sly as
, ,

the B olsheviks took the last autumn crop fr om

the pe asants at a l o figur e P easants j ust cu l .

tiv a te su fficient for thei r own needs and a quan

tity which is allow ed is kept Former p riva te
, , .
2 2 4. D I C TAT OR S H I P OF C O MM U N I S T P ARTY
instead of giving all p ower to the soviets as th ey ,

had p romi sed tried to r educe thei r inj urious

,

activities L enin himself favored employment

.

of t echnical e xpe r ts at high salar ies and even ,

advised the intr oduction of the Taylor system of

efficiency engineer ing And when in March .
, ,

1 9 1 9 L B K r asin unde r took the r eo rganization

, . .

w
of R ussian indust ry he insisted on r estoring ol d ,

and t ried methods of factory management nar ,

r o l y limiting the powe r s of the wo rke r s coun

’

cils . E vidently the soviet o rganization was ,

found quite unsuited to the conduct of bu smess,

as S chafll e and other critics p r edicted many years
ago P a sv ol sky says :
.
1

“
The con flict of author it y the disp r oportion ,

ate growth of the managing per sonnel and the

absence of efficiency due to lack of coor dination
among the various parts of the system are all
char acteristic of the whole system in its lar gest
r amifications They ar e all in the final analysis
.
, ,

attributable of cour se to the human elements in

, ,
” 2
the system .

The tr ade unions too soon found that they , ,

wer e under a system of compulsory militarized ,

labor wher e a strike was equivalent to mutiny

,

an d t reason The r uthless punishment of the

.

P etrogr ad str iker s of March 1 9 1 9 and the s up , ,

1 S h fifll
c T h I mp o i b i l i t y f S o i l D mo
e, e ss y 1 88 5 o c a e cr a c
l k y E ono m i P o b l m t h t S o i t R i h Nt
.
,

2 L eo P a sv o s c c r e s a v e u ss a as a
S ol d T h A nn l i t Ma h 14 19 2 1
,
“ ”
ve . e a s , rc , .
 D I C TA TOR S H I P or C O M M U N I S T P ART Y 225

p ression of many unions clearly show ed that the ,

unions we re no longer fighting organizations but ,

w
subor dinate agenci es of the centr al power .

“
Spargo says : The Bolsheviki had been forced
to r ecognize the fundamental eakness of every
form of syndicalism including sovi etism Th ey
, .

had found that the sovi ets wer e not qualified to

carry on industry effici ently ; that narr ow gr oup
interests wer e permitted to dominat e instead of ,

the large r int er ests of soci ety as a whole The .

”1
same thing was tr ue of the tr ad e unions .

However ther e has rec ently b een a reaction

,

against cent ralization and military contr ol and ,

the soviets and t r ade unions s eem to b e asse rting

themselves once more Both the conference of .

tr ade unions in N ovemb er 1 9 2 0 and the Eighth , ,

All Russian Congress O f Sovi ets in D ec emb er

-
,

favor ed reducing the power of the P eople s Com ’

m issars and inc reasing that of the C ent ral Ex ec

utive Committee Thes e mur murings show that
.

the Russian people a re r estl ess under the dicta

tor ship of the C omm unist P a rty and that th er e ,

is a tendency towar d d ecentr alization which may ,

lead to r eaction if not to anarchy Comm en

, ting .

o n this situation Fa rbman says : T he r eal and

fundamental cleavage is b etween th es e factions
( including L enin and T r otz k y) and the L abo r

O pposition which r ep r es ents the non partisans

,
-
,

S p a go T h G a t t F ai l i n A l l H i t o y p 25 6
"

1 r e re es ur e s r
, , . .
 w
226 D I C TATOR S H I P O F C O M M U N I S T PA R TY
no the biggest par ty in R ussia The Gommu .

nist P a rty r emains the r uling force in the politics

of R ussia but within it the r e is wor king a p ow er
,

ful democ r atic section The ferm ent in the Com .

mu nist P a r ty and the awakening of the non

w
p ar tisan masses undoubt edly marks a cr isis in the
p rogr ess of the Russian R evolution ”
.
1

w
E conomic B rea kdo n — A s is w ell known the ,

indust r ial system of R ussia is in a bad way The .

falling off in p r oduction O f most ra mat erials

and manufactu r ed goods has been enor mous so ,

that the citi es lacking food and fu el are being

, ,

depopulated and the countr y districts lacking

, ,

clothing shoes salt p etr ol farm implements and

, , , ,

w
many other things a r e r ev erting to p rimitive ,

ways of living The r ailways have ru n down . ,

factor i es a re shor t of coal and r a mat erials ma ,

chinery has becom e unusabl e busin ess men have ,

become comm on labor er s many of the technical ,

experts have disappeared and th er e is a s er ious ,

sho r tage of labor as gr eat number s of the indus ,

t rial worker s have regar dless of s ever e p enalties ,

for desertion fled to the country in sear ch of

,

food .

Then too the vast issu es of paper money an d

, ,

the fixing of maximum p ric es have gr eatly ag

t d the situation causing p r ic es to r is e to

w
g r av a e ,

1 Mi h a l Fa bman T h F m nt in th C omm ni t P ty in
c e r e er e e u s ar

ia T h N S tat man Ma h 5 19 2 1
,
“ ”
Ru ss , e e es ,
rc , .
22 8 D I C TATORS H I P OF C O MM U N I S T PA R TY
r ur al Russia is clamor ing for salt and ker osene
and cotton fab r ics and nails and flour and
”1
scyth es .

These an d many other misfortunes are att rib

u ta b l e in pa r t to the diso rganization caused by the

Gr eat W a r and the civil war s following in par t ,

to the blockade but chiefly to the attempt by the ,

B olsh evists to cr eate a new system upon the ruins

Of the ol d In this connection H G Alsber g
.
, . .

says : A goodly shar e of the mis ery in R ussia

“

to day has b een due to the stupid deadening dog

-
,

m a tism the corr uption the frightful bur eau

, ,

cr acy the tyr anny the disdain the contempt for

, , ,

wh a t we w est er n bourgeois would call p er son ‘ ’

ali ty the individual which have b een char acter

, ,

istic of R ussian Ma rxism as distinguish ed fr o m

R ussian human natu re L enin again and again .

has p ointed out that the communist r é gime has

been not only stupid but almost insan ely doc
”2
trina ire .

I ndividu a l L iberty S u p p ressed — Much mor e

could be said concer ning the failur e of commun
ism in Russia which has be en r ecognized by most ,

o f the for eign Obser v er s notably thos e of s ocialist ,

faith or leanings M J O lgin says that there is . . .

w w
no p ersonal libe r ty in Russia no political fr ee ,

M i
l
y J Ol gin M
o ssa ha ni e f P o in R i T h N ec cs o er uss a , e e
R p bl i J n 15 19 2 1
.
,
”
e u c, u e
H n y G Al b g Ru i S mo k d Gl Ro T i nt
.
,
“
2 e r s er Th ss a : e ass vs se e
Nat ion J n 15 1921
.
, .
,
”
, u e , .
 D I C TAT ORS H I P OF C OMM U N I S T PA R TY 22 9

dom and no equality The peasants are dep riv ed

.

O f thei r c r op s without r ec eiving the equivalent

in manufactur ed goods ; the workingman is bound

to his factory or mine and cannot move without
a permit fr om the labor organization which is ,

contr oll ed by the state ; he cannot go on strike ,

and is comp elled to par ticipate in the activities of

the union . The bourgeois parties of cour se ar e , ,

under the ban but the Menshevists and the S O

,

cia l ist R evolutionists even tho se of the L eft

,

w
Wing ar e p r event ed fr om issuing newspaper s
,

and magazines or pamphlets and ar e forbidden

to call op en meetings of thei r o n Mor eover .
,

ther e is not even lib erty O f sp eech as the people ,

a r e in fear of the Extr ao r dina r y Commission for

C ombating Counte r revolution which has p r a c

-
,

tised all the methods Of the Vehm Ge richt and

the Spanish Inquisition 1
.

C ivil iz a tion in P eril Writing from a more

.
-

theor etical point of view the well known Engli sh -

mathematician theoretical anar chist and p r o

,

fessed guild socialist Bert ran d Russ ell said, , ,

aft er visiting Russia in May and J un e 1 9 2 0 : ,

“
F or my part after weighing this th eory
,

( r evolutiona r y communism ) ca r efully and aft er

admitting the whol e of its indictment of bour

g e o is capitalism I fin,d myself defi nitely and
str ongly oppos ed to it

1
, e w
e
I cannot sup
Ol gin in T h N R p bl i Jun 15 1921
“
.

e u
”
c, e , .
23 0 D C I TATO RS H I P OF C O MM U N I S T PA R TY
por t any movement which aims at wo rld r ev ol u
tion The inj ury to civilization done by rev ol u
.

tion in one country may be repai red by the

influence of another in which ther e has been no ,

r evolution ; but in a unive r sal cataclysm civiliza

”
tion might go under for a thousand year s .
1

Besides all this many observer s have noted the,

cultur al and mor al decadence that has aecom

p a n ied the decline o f mate rial civi li zation A pa r t .

fr om the damage that has b een done to the

Chur ch to religious life and mor al standar ds
, ,

science an d art have suffered gr i evously thr ough ,

the d eath imp ove r ishment and exile O f many Of

,

R ussia s most distinguished men The case Of

’
.

the Russian scholar s alone is suffi cient illustration

w
O f what has happ ened in oth er cultur ed ci r cles .

Pr ofessor R ostovtsef formerly of the Univer sity ,

o f P etr ogr a d no of the Univ e r sity of Wiscon

,

sin writes :
,
“
In painting the dark picture of Russia in
agony emphasis is usually laid upon the physical
,

and mater ial side of the r uin wr ought b y the B 0 1

shev iki T his is fea r ful enough in all conscience
. ,

millions Of hapless victims paying the p rice

through execu tions star vation and epidemic dis , ,

e ases But more terrible and i rr epar able is the

.

destruction of the cultur al and mor al values .

1 B t an d R l S o i t
er rl R —
ia 1920 T h Nat ion J l y 3 1
u sse , v e uss ,
“
e ,
u ,

1 9 20 .
232 D I C TATO RS H I P OF C O MM U N I S T P ARTY

w
bourgeoi s i e is m enaced by the l ab oring class
which as D r P aul R ohrbach says is over
,
“
.
,
”
hel mingl y anti Bolsh evik O nly or -
.

1 1 p er cent of the memb er s of the Com

,

mu nist P a r ty are at p r esent employed as work

men the r est being soldier s or Officials of one
,

kind or another D r R ohr bach says : . .

“
In Moscow ther e ar e har dly workmen
left but ther e are
, S oviet Officials both ,

male and female A l l attempts to eliminate ineffi .

ciency sabotage and co rruption f r om this gigantic

, ,
”
bur eaucr atic app ar atus are doomed to failur e .
1

Thus the Bolshevists in thei r fatuous determi ,

nation to carry ou t their theori es to the logical

consequences ar e confr onted with social for c es
,

and Obstacles which they can neither destr oy nor

cont rol and in conflict with which th ey ar e likely
,

to su ffe r shipwr eck Pr ofessor Z agorsky sums .

up the situation thu s

The S ovi et autho rities set as th eir aim the
immediate reali zation of communism in Russia ,

but by their policy th ey succeeded onl y in cre

, ,

ating conditions favor abl e to the r ebi rth of capi

—
tal ism p ri mitive b r utal and r uinous Wishing ,
.

to abolish the division of societ y into classes they ,

p r ovoked class antagonisms such as R ussia had

never yet seen T rying to stifl e the capitalist and .

1 D P a l R h b a h G m ny nd E a t n E op T h
r. u o r c er a a s er ur e, e

W kl y R vi w Nov mb 3 1920
,
”
ee e e , e er , .
 D I C TATO RS H I P OF C O MM U N I S T PART Y 2 33

bourgeois cl ass es they c reated a new p etty bour ,

g eo isie equally r apac i o us

, I n end e avor ing to .

supp ress p r ivate p r oper ty they merely succ eeded ,

in developing in al l gr ades of soci ety p r operty

, ,

instincts pushed to an unh ear d of degree and -

, ,

thr oughout the whol e social economy an u npre ,

cedented o rgy of unb r idled egoism .

C ap ital ism C oming B ack — T he soviet gove rn

ment evidently r ecognizing the drift towar d
,

capitalism and unable to handl e the industrial

,

situation has offe r ed conc essions to for eign capi

,

tal ists for per iods running fr om 2 0 to 8 0 yea rs ,

including a tentative concession to an American

syndicate for the exploitation of fish fur s coal , , ,

and p etr oleum in Kamchatka a great fo restry ,

conc ession to an Engli sh syndicate and another ,

to Ger man dye manufacturer s A lso the gov .

,

ernment has m ade ove r tur es for t r ad e with for

ei n count ries as in the ec ent R usso B r itish -

g r ,

w
agr eement alth ough it has little to Offer in ex
,

change but gold as th er e is p r actically no su r ,

plus O f wheat flax lumb er or oth er r a mater i , , ,

als And as the gold is limit ed in quantity th ere

.

“
r emains as K r asin has said , only the granting ,
” 2
of conc essions .

w
—
Finally and this is anoth er long step back to
I S Z g ky L aA p t S i
or s d l R é p bl iq
es d So i ts ec s oc a u e a u ue es v e s,

Mond No v a Fé v i 19 2 1
.
,
”
Le e u e u, r er ,
K a in an w W l l B y Fab ian F nk l in T h W k l y
.

2 “
r s s er s e s ra e ee
R vi w J n 18 192 1
.
,
”
e e , u e , .
2 3 4: D I C TATORS H I P OF C O M M U N I S T P ART Y
war d capitalism —
the Tenth C ongress of the
C ommunist P a rty which met at Moscow in May , ,

1 92 1 adopted a r adical change of polic y de

,

signed to encourage the peasants and the small

w
capitalists The peasants ar e to pay taxes in
.

kind by giving the st a te about one thir d of the -

cr op the r emaining t o thir ds to r emain at the

,
-

di sposal of the peasants for t r ading t hr ough the

r e established coop er ative societies
-
The gover n .

ment is to r etain contr o l Of tr ansportation and

the largest industri es but small and middle sized ,
-

coiip er a tiv es an d p r ivate ind ustri es a r e to be p er

mitted “ 2

—
.

T he T hird I nterna angely incon tion l St a r

sistent with such comp r omises are the twenty one -

conditions of admission laid down by the C on

gr ess of the Thir d International held in Moscow
in August 1 9 20 designed to separ ate the she ep
, ,

fr om the goats in al l socialist cir cles t hr oughout

the wor ld S ocialist organizations desir ing ad
.

mission to the Inte rnational C ommuni st P arty

1 “ T h Lit a y D i g t J n 18 1921 ”

ww
e er r es u e
Th i d i ion am t l at t ind th p a ant to ai
.
, ,
2 s ec s c e oo e o u ce e e s s r se
la g
r er crop ind d t v th
s, or , al a mo n t f d t h a t
ee o sa e e u su u o see so
th a ag p l an t d f th op f 192 1 t han al nd
, ,

e cr e e e lor e cr o as ess u su a
th am o n t f
e u d p l an t d p
o seed i tin a ) e l than
er es a a cres as ess

h al f f th o a l am o nt S wh n th d o gh t am in th
e u su u o, e e r u c e e

Vol ga gion t h w b t l i gh t v n wh i h th p a ant

.

re er e er e u s r eser es o c e e s s

o l d l iv nt i l anoth a n no a d q at m an f t an p o
,

c u e u er se so e u e e s o r s r

t ti n f food f om th Uk ain nd o th di t i t nd v y
,

a o o r e r e a er s r c s, a er
l i tt l d t p l an t f
e see o th h a v t f 1 922 Th
or pon i b i l i ty f
e r es o e res s o

S ovi t gov nm n t f wo t f i gh t f l
.

th e e th er elt f th or e rs r esu s o e r u
fam in f 1 92 1
e o nnot b vad d ( C f W hy R i S ta
ca e e by e u ss a r v es,

T h W k l y R vi w
. .

L eo P l ky
a sv o s ,
“
Ag t 6
e ee e e
”
,
u us ,
2 36 D I C TATORS H I P O F C O M M UN I S T P ARTY
of that belief including A l ge rnon L ee J ames
, ,

O neal M eye r L ondon V ictor Berge r and M or

, ,

ris H il l quit r efusing to bow down to the Moscow

,

International are excomm unicat ed and onl y a

, ,

r emnant o f compar ativel y unl ea rne d agitator s

are left to bear the standar d .

B ol shevi m I s R evo u tiona ry M arxi sm

s l — But
intel lectuals of high standing such as th ese ,

among whom are now number ed P l ekhanoff and

M artoff of Russia Kautsky and B er nstein of
,

Ge rmany and even J ean L onguet Of F r ance

, ,

grandson and interp rete r of Kar l Marx cannot ,

app r ove eith er the doctr ines or the tactics of the

Russian communists becaus e th ey do not con
,

form to the ev olutionary views Of the late r Marx ,

“
and do not r est on the will of the immense ma
”
j ority of the p r oletariat .

D oubtless the r evolutionism of the R ussian

communists is theo r etically unsound and was
r epudi at ed by Ma rx and Engels in thei r lat er

years And yet these communists have a right

.

to claim both Mar x and Engels as th eir spi ritual

fathe rs b ecause they follow their earlier if not
, ,

thei r late r teachings an d ar e moving in the di

, ,

r ection indicated by them though far too fast ,

for thei r academic comr ades The case is w ell .

stated by Vexler :
“
Between B ab eu f s C l u b of E qu al s and
’

L enin s C entral C ommittee lies a world of dif

’
 D I C TATORS H I P O F C OMMU N I S T P ART Y 237

fer ence and a century of hi story Y et it cannot .

be gainsaid that an unb r oken chain of r evolution

a ry t r adition links the conspi ra cy of 1 79 6 with

the cou p d é ta t of 1 9 1 7 Fr om B ab euf to B lan

’
.

qui fr om B l anqu i to Marx fr om the latter to

, ,

L enin the r ed thr ead of the social revolution

,

r uns unbr oken thr ough sever al r evolutionary

” 1
o rganizations .

Therefor e the academic socialists who for ,

more than a centur y have t ried to a r ous e the pr o

l etaria t to a bu rning sense Of thei r w rongs and
to convinc e them that capitalism was doomed to
destruction have no reason to be surp rised or
,

gr ieved b ecause the enraged and unl eash ed p r o

l etaria t se eing the quar ry at th eir me rcy have
, ,

sp ru ng dir ect at its throat .

The communists will doubtl ess fail in their p re

mature attack but they have at l east p resented
,

w
an Obj ect lesson of socialism in action that may
save the wor ld fr om like experiments though at ,

t err ibl e cost to th ei r o n country and to th em

s elves A nd the academic socialists whos e theo
.
,

r etica l position is no l ess unsound cannot exon ,

ers t e th em selv es by saying that th ey did not plan

or int end the ev ent What a re plans and sp eci

.

fi ca tions in time of r evolution ?

It might have b een well for them if they had

pondered the wise wor ds of that political cynic ,

F l i i V xl C ol mb i Univ i ty " a t l y J l y 19 19
1
“ ”
e c u e er, u a ers u r er , u , .
238 D I C TATOR S H I P OF C OMMU N I S T P ARTY
M achiavelli : L et no
man who begins an inno
v ation in a state expect that he can stop at his

pleasur e or r egulate i t according t o his inten

”
tion .
2 40 A PPE ND IX
g at u ban nt b tw n th G at Lak
re r ce er nd th e ee e re es a e

P ifiac oa tc c s .

T h n t No th D akota i till l a g ly a n op tat

e , oo, r s s r e o e-cr s e,

p odu ing hi fly mall g ai n f whi h p ing wh at i

r c c e s r s, o c s r e s

by f th ar m o t i mpo t nt e T h i g at op i mo tly
s r a . s re cr s s

fi n a n d m a k t d nd mill d in M inn apoli St P aul

ce ,
r e e a e e s, .
,

D ul th M ilwauk
u , and Chi ago a nd i t i n t t ang
ee c , s o s r e

that th fa m e f No th D akotr hould ga d th m

er s o r a s re r e er

c ha nt manu fa tu
s, and ba nk f thc i ti
r er s n n ers o ese c es a s o

i d nt li n
w
r es e a e s.

Th a again t th fin an i al in t t f th g a t
e c se s e c er es s o e re

c i ti i n lud i ng N Y o k th moth
es, c f th m l l m ak
e r , e er o e a , es

m n ti on f p
e latio n in land di i min ati n in a ilway
o s ecu ,
scr o r

r a t i n a in m o tgag high at f i nt t g owth

es, cre se r es, r es o eres ,
r

o f t na n y and oth
e c fo m ,
f al fan i d xploitati o n
er r s o re or c e e ,

b ut th h i f oun t in th indi tm nt a t that th

e c e c e c e sser s e

fa mr d n t
er s iv a qu a d al in th ma k ti ng f
o o rece e s re e e r e o

fa m p odu t
r r c s .

A t th m a k tin g f p i ng wh a t
s o e l ativ ly li ttl i
r e o s r e , r e e e s

ai d about th automati dj u tm nt f p i
w
s e n th c a s e o r ces o e

Chi ago boa d f t ad a nd i mila o ga ni zati on lthough

c r o r e s r r s, a

th i op ati on
e r era my t y t o t i d s a re h f that s er o u s ers, o or

re sa o n u p t th in i d
s s f m a ni pulation ga mbl in g and
ec e s er s o ,

o th qu tionabl p a ti
er es But i t i w ll kn own tho gh
e r c ces . s e ,
u

n t g n ally ad mitt d that th p i

o e er paid t th fa m e ,
e r ces o e r er s

flu tuat w ith tho f th nt al m a k t and that th

c e se o e ce r r e s, e

g ain d al
r allow i ng f f i ght ha g and all oth
e er s, or re c r es er

e xp n e doing b in
ses, a ren n a ow ma gin T h us ess o a rr r . e

c h i f omplaint th fo i that th g ading don a t th

e c ,
er e r e, s e r e e

p ivat l v ato i u n fa i a n d th a t o mp titio n h b n

r e e e rs s r c e as ee

l a g ly li minat d in th buy i ng f g ain by th on p i a y

r e e e e O r e c s r c

o f th d al e nd th l ad h i p f v a iou bu in
e er s u er e e ers o r s s ess

m n a o iation p i ally th M inn ap l i Cha mb f

’
e s ss c s, es ec e e o s er o

Comm erce .

In a nt p h S nato E F L add fo m ly p i
rece s eec , e r . .
,
r er res

d n t f th N th D akota A g i ul tu l Coll g
e o e or ai d r c ra e e, s
 A PPENDI X 24 1

flag ant inj ti f allowin g th g ad f g ain

T he r us ce o e r es o r

t b
o a bit a ily fix d by th b y i b t v id n d by
e r r r e e u er s es e e ce

th fa t that th g at t m inal l vato

e c e t M inn apoli
re er e e rs a e s

and D uluth habit ally old m o bu h l f high g ad u s re s e s o r e

g ai
r n th an th i o d how that th
e r y had pu
rec r ha d s S e rc se

f o m th fa m
r e Ev id n tly by o m my t io ho u
r er s . e s e s er us c s

po g a in b am nhan d in v alu a ft it had l ft th

cu s r ec e e ce e er e e

fa m and gon into th hand

r f th g ain b y
e a nd f
e s o e r u ers, , o

c ou thi ma nipula tion in g ad o t th fa m

r se, s f r es c s e r er s o

No th D akota in th gg gat m any millio n f doll a

r e a re e s o rs

v yy a
w
”
e er e r .

I n ply t thi a nd i mila t at m nt th monthly l t

re o s S r s e e s e e

ter f th Nati onal Ci ty Ba nk f N

o e Y o k f A p il o e r or r ,

192 1 ay ,
s s

In opini n i t i i n dibl that th M inn apoli

our o s cre e e e s

Chamb f Comm o n t nan d un fa i and i

w
er o h erce as c u e ce r r

re g la m thod I t i qui t po ibl tha t th m y ha v

u r e s . s e ss e er e a e

b n individ al m mb
ee f th g ain x hang
u e h w ul der s o e r e c e o o

n t b
o abo v ha p p a t i b t that th x hang
e e s r r a c ce, u e e c e as

body would adopt ul f p a ti f that kind i m r es o r c ce o s u

b li vabl
e e e .
”

T h ha g i ba d upo n th p a ti f mix ing by

e c r e s se e r c ce o ,

whi h a t in a mo n t f g ain f in f io g ad m y b
c cer a u o r o er r r e a e

mix d wi t h that f b tt
e q ali ty wi thout low ing th
o e er u , er e

g ad
r i nju
e or ing th m i l li ng valr M o o v t h e po i ue . re er , e ss

b il ity f doing t hi i tak n in t o a o nt in fi xing th p i

o s s e cc u e r ce

o f th low e g ad t hat
er th f a m
r m y gain
es, so i n p i e r er a r ce

pa t all f what h lo in g ad How v thi

r or o e ses r e . e er , s ex

planati on do no t a t i fy th fa m es f No t h D ako t a
s s e r er s o r .

Th th hi f lin f a tion op n t th fa m
er e a r e r ee c e es o c e o e r ers

f No th D kota any o th tat wh i mila p obl m

w
o r a or er s e er e s r r e s

p nt th m l v I n th fi t pla th y might d th i
rese e se es . e rs ce, e o e r

o n ma k ting th ough r e iip ti a ia t ion lik th

r co er a ve ssoc s e e

Cali fo nia F it G ow
r A o ia t ion whi h ha v b n
ru r er s
’
ss c , c e ee

m a u ably
e s r f l in holding p i vat i nt
su ccess u t in h k r e er es s c ec

an d in tti ng tanda d f fa i ma k t o n di ti n v n
se s r s o r r e c o s, e e
2 42 A PPE N DIX
wh n th y h av g a i n d l i ttl in th way f high p i
e e e e e e o er r ces.

S ondly th y might app al t th ta t t mov th

ec , e e o e s e o re e e

m o t gla i ng ab
s by i n p t ion and ont ol f g adin g
r u ses s ec c r o r

and oth onditio n f ma k ting thu uppl m nti ng th

er c s o r e ,
s s e e e

wo k f th Unit d St t Bu au f M a k t O go ing
r o e e a es re o r e s . r,

fa th r along th l i n f ta t a tivity th y m ight k f

er e e o s e c , e as or

s ta t ow n hip a nd op atio n f l vato mill and oth

e ers er o e e r s, s er

ag n i by whi h th g ai n g ow might b om in
e c es c e r r er s ec e

d p nd nt f p ivat nt p i
e e e O a t l a t t up quita bl
r e e er r se or e s se e e

s tanda d t whi h p i v a t bu i n would on fo m

r s o c r e s ess c r .

I n th thi d pla th fa m might fi nd a ft a ful

e r ce, e r er s ,
er c re

s tudy f ma k ting that it o ld b m o t ffi i ntly a i d

o r e ,
c u e s e c e c rr e

o n ,
n ow by p i vat n t p i
as ,
nd that th bu i n
r e e er r se, a e s ess

m n e gan iz ati on would iip t with th m t mo v

’
s or s co er a e e o re e

or min i m iz ab and t u th g at t po ibl

e u ses o sec re e re es ss e

b n fi t t all on n d
e e o c cer e .

T h fi t f th
e m thod h
rs b n t i d in No th
o ese e s as ee r e r

D akota h i fly b y th E qui ty C iip ti E x han g

, c e e o er a ve c e,

whi h h b ilt h nd d f l vato om f whi h ha v

c as u u re s O e e r s, s e o c e

b n qui t u
ee f l p ially du ing th tim f i ing
e s ccess u ,
es ec r e e o r s

pi r ces How v th t minal l v ato whi h th E qui ty

. e er, e er e e r c e

E x hang built i n St P a l lo t in fou y a about $ 7 5 000

c e . u s r e rs , ,

and f ou ,
o th cfi nan i al i nt t f M i n n ota w
r se, e c er es s o es er e

bla m d f thi e or s .

i w ll known fa m oop a tiv a o ia tion ’

A s s e ,
r er s c er e ss c s a re

ha d t a y n th
r o c rr t m any m a t
o i t i d ith
,
as er e a r e oo s er s, s

cu l t t obtain o m p t nt m a na g
o and n t a y t tabli h
c e e ers, o e s o es s

fi nan ial onn tion

c cB id th ma gi n f p o fi t p
ec s . es es, e r o r er

bu h l f g a in handl d i n ot la g
s e O r i ommonl y e s so r e as s c

suppo d a nd in g n al th fa m
se , y t l a k i
e ng er , e r er s a r e as e c

in tip ti xp i n
co er a ve e er e ce .

E v i d ntly th e iip ti l vato f No th D ak ta

,
e co er a ve e e rs o r o

w n t altog th ati fa to y i hown by th lamo

er e o e er s s c r ,
as s s e c r

f or tat own d l vato whi h a o

s e e f ba k th
e e rs c r se a s ar c as e

y a 1 9 0 7 I n th l tio n f Nov mb 1 9 1 2 th p opl

e r . e e ec o e er , , e e e

r ati fi d a o n tituti on al am ndm nt a tho i z ing th tat

e c s e e u r e s e
2 44 A PPE N DIX

w w
e x mpti o n f imp o v m nt and om p onal p op ty
e o r e e s s e er s r er

f o m ta xatio n
r T h total v ot f th L agu in th
. e e or e e e e

s ta t wh i t
es a tiv
ere about as c e as

T h p og a me f th
r L agu point d t ongly in th
r o e e e e s r e

di recti o n f tat o iali m d manding t t t minal

o s e s c s ,
e s a e er

l vato wa hou flou m ill pulp and pap mill

w
e e r s, re ses, r s, er s,

s to kya d pa king hou

c r s, old to ag plant tat hail
c ses, c -
s r e s, s e

in u a n
s r u al dit bank T h n t th
ce, r r cr e an s . e , oo, er e as

a dd iti onal p og a m f l abo l gi latio n d ign d t aptu

r r o r e s es e o c re

th labo v ot

w
e r e .

D u i ng th r i o n f 1 9 1 9 th L gi lativ A mbly
e sess o e e s e sse

o f No th D akota n
r ompl t ly ont oll d by th L agu
,
o c e e c r e e e e,

p a d
sse law f th a tion f a t t bank tat m ill
s or e cr e o s a e ,
s e s

a nd l v ato e e a y t m f ta t g ading a tat ho m build

r s, s s e o s e r ,
s e e

i ng o i ation tat i n u an and oth m a

a ss c ,
s f e s r ce, er e su r es or

th b n fi t
e e f th fa m
e o fi t f all T h A mbly al
e r er s rs o . e sse so

pa d a i f labo law i n ludi ng di ab ility m

sse ser es o r s, c s co

p n
e ti san ight
o hou ,
day e f wo m n m ini
-
m m wag rf or e , u e or

wo m n li miting th i an f inj n tion in labo di

e , e ssu ce o u c s r s

put q i ing th un ion lab l n tat p i ntin g F

w
es, re u r e e o s e r . or

th e ad mini t atio n f th tat indu t ial nt p i a n

s r o e s e s r e er r ses

I ndu t ial Co mmi i o n

s r at d on i ting f th ss as cr e e , c s s o e

G o v n o th Atto n y G n al and th Co mm i i on
er r, e r fe -
e er , e ss er o

A g i l tu and L abo
r cu re r .

T h inaug ation f o n i d abl a p og am f tat

w
e ur o so c s er e r r o s e

e nt p i er q i d a o n id abl m f mon y
r se re u re an c s er e su o e ,
so

i u f bond up t a li mit f autho iz d

w
ss e o s o o as r e

by th A mbly T h l gality f th nti p og am in

w
e sse . e e o e e re r r

l ding th v alidity f th bond

c u e oon att k d in th o e s, as s ac e e

c o t b t a fa v o abl d i i on
u r s, u nd d by th Uni t d
r e ec s a s re er e e e

Stat S p m Cou t n J un 1 1 9 2 0
w
es u re e r o e ,
.

T owa d th nd f th y a a n i u f
r e e o in e e r ss e o

bond b a i ng i nt t f om 5 t 5 % p
s, e r nt o ff d
er es r o er ce as er e

f or sal but ould n t b float d at th tim F i nd f

e, c o e e e e . r e s o

th e L agu a e th efi nan ial i nt

ccu se t f on pi in g t e c er es s o c s r o

d i dit th bond an d f d m nding that North D akota

scre e s o e a
'
 A PPEN DI X 2 45

abandon pa t f it ind t ial p og am th p i f th i

r o s us r r r as e r ce o e r

a i t an
ss s T h ba nkce n th
. o th hand y that th
e s, o e er , sa e

bond n t att a ti v t i nv t o
s a re o th fi nan ial a ff ai
r c e o es r s, a s e c rs

o f No t h D ako t hav b n badly m anag d

r and th e ee e , a as e

bond ma k t i n g n al h b n mu h d p
r e d F ail i ng
e er as ee c e r esse .

to ll th bond in th u ual way th Bank f No th

se e s e s , e o r

D akota h ntly fl d th m t popula ub iption

a s rece o er e e o r s scr .

L a king f n d f om thi ou
c and ag t b gin th
u s r s s rce, e er o e e

v a io r nt p i
us th eIn d t ial Co mm i io n took d
er r ses, e us r ss a

vant g f tion 7 f th A t ating th Bank whi h

a e o sec o e c cre e ,
c

re q i d all t t o nty town hip m ni ipality and

u re s a e, c u ,
s ,
u c

sc hool di t i t f nd wi th th f nd f all p nal d a

s r c u s, e u s o e , e uc

ti n l and indu t ial i n t it t ion

o a f th ta t and all oth
s r s u s o e s e, er

p bli f nd t b d po i t d i n th bank
u c u s, o e e s e e .

On th ba i f th e d po it th Bank mad la g
s s o ese e s s e e r e

adva n t th i ndu t ial n t p i

ces o Th e M ill and s r e er r ses . e

E l va to A iation o ga n iz d M ay 2 9 1 9 1 9 pu ha d
e r ssoc ,
r e , ,
rc se

a mall xp i m nt l flou mill at D ak whi h it op at d

s e er e a r r e, c er e

at om lo b au f falling p i
s e ss whi h o ld n t b
ec se o r ces c c u o e

l gally v d d by th ual h dging On M ay 5 1 9 2 0

w
“
e e a e e us e .
, ,

th A o ia t ion b gan th
e ss c on t tion f a la g mill at e e c s r uc o r e

G a nd F o k t o t about
r r s b t th wo k
o c s u e r as

su s p nd d lat in th y a f la k f f nd T h Hom
e e er e e r or c o u s . e e

B ilding A o iation b ga n op a t ion in th mm f

u ss c e er s e su er o

19 19 in wh n 3 1 hom hav b n ompl t d and 2 7

, s ce e es e ee c e e

a re in o f on t
c tion ; but th i wo k al o h b n
u r se o c s ru c s r s as ee

su s p nd d e e .

T h Ba nk al o l nt n a ly
e i n ov 6 0 0 fa m
s e e r er r

loan unning f 3 0 y a
s, r T h n t i t d po it d abo t
or e rs . e , oo, e s e u

th am amount in om 4 7 0 lo al ba nk om f whi h
e s e s e c s, s e o c

w p ially fa v o d T h d po i t i n th S andina v ian

ere s ec re . e e s s e c

Am i an Bank f F a go now lo d in whi h L agu

er c o r ,
c se , c e e

m mb e aid t hav b n la g ly in t t d amount d

er s a r e s o e ee r e e r es e ,
e

t o and th d po i t in o th lo d bank e e s s er c se s

a mo nt d t abo t
u e mo oI n th and oth
u re . ese er

way n a ly s e f th Ba nk
r ou w ti d o e
’
s res r ces ere. e
 2 46 A PPE N DI X
up in non —
l i qui d dit nd w n t a v a il abl
or fr oz ne cr e s a er e o e

t o m t th d mand
ee f th lo l go v n ing b di
e e s a nd o e ca er o es

oth er tod i a n f p bli fund

cu s s o u c s .

T h t oubl e f th Bank w
r es on t wholl y d t bade er e o ue o

b a nki ng b t in pa t t a h a ng in publi op ini o n whi h

w
, u r o c e c c
,

ft a ti m t t ongly again t th L agu In N

w
a er e se s r s e e e . o

1 9 1 6 G o v n o F azi l t d by a maj o ity

w
ve mb er, , er r r er a s e ec e r

O f in 1 9 1 8 hi m aj o ity du d t s r as re ce o

a nd in 1 9 2 0 i t o nly altho gh in that l ti o n

as u e ec

wom n w fi t allow d t v ot A t that tim t th

w
e er e rs e o e . e, oo, e

L a g lo t ont ol f th Hou holdi ng th S nat by

e ue s c r o e se, e e e

a mall maj o ity T

s p th rli m ax t
. i mpo t an t o ca e c , o r

m a u
e s res w ad pt d by f nd m v ot th n n
er e o e r e er e u e, e o e co

fini ng th a tivi ti e f th Bank t u al di t thu

c es o e o r r cr e s, s

p v n ting th fi nan ing f th i nd t ial p oj t th

re e e c o e us r r ec s, e

o th p aling th a fo m ntion d tion 7 whi h q i d

er r e e e re e e sec c re u re

th pol i ti al ubdi vi ion t d po i t th i fund w i th th

e c s s s o e s e r s e

B ank .

Soon a ft thi 3 7 t f 5 1 ounty t a

er s d m a nd d
ou o c r e surers e e

th i f nd and p ntly oth

e r u s, todi an f publi m n y
r ese er cu s s o c o e s.

follow d uit thu e s ating a iou n n th Ba nk

,
s cre ser s ru o e ,

w
as th d po it w la g T h upo n th Bank had t
e e s s ere r e . er e e o

c all in d po it f om th lo al bank
e s s a ti ng a i i whi h
r e c s, cr e cr s s c

o nl y pa tially li v d by th d po it f th fund
w
as r re e e e re e s o ese s

by th i u todia n in th a m
e r c s oth lo a l ba nk T h
s e s e or er c s . e

s it a tio n
u d id dly mba a i ng p ially i n v i w
as ec e e rr ss ,
es ec e

o f th g n al fi nan ial t i ng n y
e e er So m 3 5 f th l a l
c s r e c . e o e oc

bank lo d th i doo i n l di ng th S andina vi an

s c se e r r s, c u e c

Am i an Ba nk and th Ba nk f No th D ak ta i t l f
er c ,
e o r o se

c o ld n t pay all it d po ito

u o T h Ba nk i doubtl s e s rs . e s ess

sol v nt nough it h th
e e dit f th tat b a k f it
,
a s as e cr e o e s e c o ,

but it will t k a lo ng tim t liq i dat and m anwhil

a e e o u e, e e

th taxpay
e will ha v t pay Al t og th No th D ako
er s e o . e er , r

ta s
’
xp i n
e f t at bank i ng
er e ce o pl d with tat in
o s e , c u e s e

d t i l nt p i
us r a e h n t b
er n happy
r se, as o ee .

A t th s o fa il f th ind t ial n t p i
e su ccess or ure o e us r e er r ses,
248 A PPE ND IX

th i mutu al b n fi t an d in th y a tha t follow d th y

e r e e , e e rs e e

put th ough a doubl ba l d p og am f l gi lation d

r e -
rr e e r r o e s e

s i gn d t b ak th p w
e o f th g a t l a ndow n
re e and o er o e re er s

ca pit li t a s s .

O n th n hand W e o l aw d ign d t b k up th
e er e s es e o rea e

g at tat wh th by di t pu ha
re es es, eby p ial er r ec rc se or s ec

taxa ti on f la g holdi ng and th p op ty f ab nt

o r e s e r er o se e es .

Th er ew gov nm nt advan t ttl

ere er and oth e ces o se er s, er

fa v o t th
rs m all fa m
o eOn th oth h and a long
s r er s . e er ,

i
ser es o f labo law w pa d i n l ding th mploy
r s er e sse ,
c u e e er s

li ability am ndm nt t th i ndu t i al on iliatio n and

e e ac , e s r c c

a bit ati on t th
r r m n t a t
ac , p o v iding f l d
e sea e
’
s ac , c s r or o

p ion wo k dw l ing advan wo k and

w
’
a g e n e s l s, t r ers e s, ces o r er s

th l i k
e Al th go v nm nt whi h al ady own d and
e . so, e er e ,
c re e

o p at d th ail oad a qui d a f

er e e r oal m in w nt
r s, c re e c es, e

i nt th fi , l i f and a i d nt in an b in
o e re e and cc e su r ce us ess,

w
c a i d n om oth a tiviti pointing i n th d i tion f
rr e o s e er c es e r ec o

s ta t o iali m
e s c s .

T h xp i n f N Z al a nd how l a ly that a
e e er e ce o e e S s c e r

ount y m y m o v in a gi v n di tio n f a tim wi tho t

w
c r a e e r ec or e u

w
app oa h i ng th appa nt goal C tai nly th ag a ia n
r c e re . er ,
e r r

l gi lation f N Z ala nd whil o t n ibly o i ali ti

e s o e e , e s e s s c s c,

a s re ally th v y ppo it f that e it in a d th

er o s e o , as cr e se e

n umb f m all fa m and t ngth n d th i atta h

w
er O s r er s s re e e e r c

m n t t th in t itution f p i v at p op ty
e o e s S al o th o r e r er . O s e
“
o i ali ti labo l gi l tion i n f
s c s c
”
it r b n fi ial
e s a ,
so ar a s as e e c

t th labo
o e t nd d t m ak th m l di ont nt d and
rer s, e e o e e ess sc e e

mo reloyal t th p nt o ial o d o e r ese s c r er .

—
How v a nd thi i an i n t ting pha f th la
e er s s er es se o e c ss

t ggl — th L ib L ab P a ty ontinu d f a tim b t

s ru e e
“
-
r
”
c e or e, u

as th fa me b a m mo p o p ou and th labo
r ers ec e re r s er s e rer s

d mand d m o and m o i n l ding f th taxa tion f

e e re re
,
c u ur er o

land v alu th llia n w ak n d and fi nally b ok p

w
es, e a ce e e e ,
r e u ,

th e fa m fo ga t h ing w it h
r ers on vati v whil th
re er c ser es, e e

mo adi al f th labo
re r c d i ft d towa d o iali m
o e rer s r e r s c s .

An th in t o tin g ph a f stat a tivity in N Z

er eres se o e c e ea
 A PPE N DIX I 2419

land i th fa t that i t h built up a la g and i nfl ntial

s e c as r e ue

c iv il vi ser bu a a y whi h i a ou
ce or f politi al
re u cr c ,
c s s r ce o c

t ngth t th pa ty in pow givin g oppo tunity t

s re o e r er, r o

politi al l d t b ild up an i mp gnabl ma h in

w w
c ea er s o u re e c e.

I nd d th long li f f th Li b L b P a ty f m 1 8 9 1
ee ,
e e o e
“
-
a r , ro

t 19 12
o p obably d in pa t t th t m ndou p
, as r ue r o e re e s o

er wi ld d by th M ini t y whi h m ad i t advan t g o

e e e s r , c e a e us

to iv il
c v ant m hant manu fa tu
ser ont a to
s, er c s, c r er s, c r c r s,

w
bank n w pap s, o nti muni ipaliti
e s a nd v n
er s, c u es, c es, e e

fa m tand in w i th th go v nm nt T h fa t
“ ”
r t
er s, o s e er e . e c

that thi kin d f o pti on h n t gon fu th i n N

s o c rru as o e r er e

Z al nd i a t timony t th g n ally hi gh t nda d f

e a s es o e e er s a r s o

publi mo ality i n that o nt y

w
c r c u r .

A t th g n al fi nan ial u
S o e f th in d t i al n
e er c s ccess o e us r e

t p i
er r sesin N Z aland th m o t th a t n b aid i that
e e , e s ca e s s

th y hav n t ui n d th ount y al tho gh o m f th m

w
e e o r e e c r ,
u s e o e

hav ul t d i n d fi it whi h hav b n mad up t f

e r es e e c s c e ee e ou o

tax and lo an I t hould b not d t that N Z ala nd

es s . s e e , oo, e e

h as don li ttl in th way f o iali ti l gi la t ion du i ng

e e e o
“
s c s c
”
e s r

th pa t fi ft n y a
e s and that thee i at p nt li ttl
e r s, er e s r ese e

ev id n t how that apitali m in that ount y i b ak

e ce o S c s c r s re

of tho
s c
Vi ewing
f N
se o

o i ali m i t i v id nt that th fa m
s ,
e

s e
w
xp i m nt f No th D akota in th li ght
the
Z al and an d in th i lati on t
e

i nti fi
e

f No th D akot
er

e
e

,
s o

e
r

e r re

r er s o
o

r
“
sc e
e

c
”

as a la c n t o i ali t
ss nd that i f th y
a re od in s c s s, a e su ccee

solv i ng th ma k ting p obl m wh th by t t a ti vity

e r e r e , e er s a e c

or iip
co ti ff o t
er a m ly by g l atin g p i vat n
ve e r , or er e re u r e c

t p i
er th y will b b tt ati fi d than v wi th th
r se, e e e er s s e e er e

p i v at own hi p f land and o th p op ty M o v

r e er s o er r er . re o er,

as v ybody kn ow th fa m
e er th bulwa k f s, e r er s are e r O

capitali m and anything that will m ak th m p o p ou

s ,
e e r s er s

and happy will t ngt h n th fo ndatio n f th p nt s re e e u s o e rese

o ial o d
s c r er .

By th am t k n th db o iali t wi hing i nd t i al
e s e o e ,
or o x s c s s, s us r

co ndi tion t g ow w s and w o o ff t l l su h ex

r orse orse, sc a a c
25 0 AP PEN DI X
p eri mentsin sta te sociali sm o tate a p i tal ism s
hav b n t i d in N e Zeal a nd a nd No th D akot Some
e

of th m ha v
ee r e

a tta cked the Nonpa ti san Leagu a n d

e e
w ”
r

r
“
s

r
c

e
a.

a re
a

gl d t
a i t fail becaus th y w i h t h v i t l a ly
o see , e e s o a e c e r

show n that so cial sal v atio n c n c o me th ough the p r ol e a r

t i at alon e But th fa m of No th D akota e n t

ar . e r ers r ar o

p ol ta ian s and ha v n w i h to b com such ; wh r fo

r e r e o s e e e e r,

f o m the point of vi w of th
r v olu t iona y M a rx i sts a nd e e e r ,

ce t inly f o m th at
r a f th M o cow I nternati o nal th y re
r o e s
, e a

b ut h enchmen of th bo u geoi i e e r s .

F all that th ha v b n a n d
or a n umb e of so ci al
,
er e e ee a re r

i sts O f v a ious had of d r p ink am ong th l ea d s

s es re or e er

of th No npa ti an L ague for soon a fte th mov ement

e r s e , r e

had w ll b gun a n umb of a p et bag so i ali ts ame

e e er c r -
c s c

fr o m f r an d n ea r ev en s the Bol sh evi ts an d oth e

a of , a s rs

that b li f gath e ed in P trog ad a fter the M a rch R ev o

w
e e r e r

l ution .

C T ownl y hi m l f
A . . an ganiz f th So i al e se as or er or e c

i t P a ty an d
s r n f th l gi latu f No th D a kotra n or e e s re o r a o

th So ia l i t ti k t in No v mb
e c 1 9 14
s T h w ll kn w n
c e e er, . e e -
o

o i al i t autho an d j ou nali t Cha l E dwa d R u ll

s c s r r s r es r sse

w
h lp d t laun h th Nonpa ti an L ad w t a i
e e o c e r s e er, ro e ser es

f pp i ati v a ti l f P a on M aga zi n al a ’
o a r ec e r c es or e rs s e, so

b ook a n d ,
f om mo nth valu d advi
as f th or s e s a e sor o e

L eague .

Ar thur S ueur
a sociali st of lo n g stan di ng a fri en d
w
L e , ,

w
an d a so ciat of M D b s an d a member of the ex ecutive
s e r . e ,

c ommi tt e o f the S ociali st P a ty

e s one o f th e l eadi n g r , a

lights f the L agu Anoth r s W alte T homa s Mills

o e e . e a r ,

w
p e ipat ti autho r and orato r onc of Milw auk later
w
a r e c , e ee,

of Cali fo ni a st i ll later a so ia l i st agi ta tor a n d o g an iz r

r ,
c r e

in N e Z ala n d Still a n oth er s D C Co ates sometime

e . a . .
,

l i ut nant go v n o of C olo rado one of the o ganiz e s of

e e -
er r ,
r r

th e I W W in Chi ago i n th e y a 1 9 0 5 l t r a p o minen t

. . . c e r , a e r

so ci al i t in Spoka ne W a shi n gton B sid th se w e

s ,
. e es e er

min o so ci ali t l i ghts such s A E Bow en J o seph G ilb e t

r s ,
a . .
,
r ,
25 2 A PPEND IX
poli ti al ma hin An d in a mu h a n mb f th mo t
c c es . s c as u er o e s

w
p omin nt l ad
r eo iali t and adv ntu
e w iner s, as s c s s e r er s, er e

n n
o se se r ep ntati v f th fa m f No th D akot
r ese es o e r er s o r a,

th d i ta t hi p f th L a gu
e c or sl l th mo bj o e e e as a e re o ec

tiona bl e .

At th e p rese nt ti me i t lo ok s
th ugh th m thod if as o e e s,

n t th a i m
o e f th Nonpa ti a n L agu
s, o f No th D akot a
e r s e e o r

w p tty w ll di dit d
ere re p matu ff o t t olv
e scr e e , as re re e r s o s e

th m a k ti ng p obl m by tat
e r e nt p i n t la g a
r e s e e er r se o oo r e

sc al T h vi d p og am f th L agu in oth tat

e . e re se r r o e e e er s es

a pp a t fa v o t at own hi p f l vato mill pa k

e rs o r s e er s o e e r s, s, c

i ng ompani and th lik

c in
es, f n ay t e e,
“
so ar as ecess r o

res to omp titio n and b ak monopoly pow

re c e re er .
”

M a nwhil th
e h b n a viv al f int t in
e, er e as ee re o eres

co bp ti
er a ma k ti n gve x mpli fi d in th wo k f th
r e , as e e e e r o e

Fa m E du ational C O p ti U n i o n and in th nt
’
r er s c o er a ve , e r ece

o ga ni zation f th U nit d Stat G ain G ow

r o e In e es r r er s, c ,.

whi h i t oo di na t th wo k f many f th oth

c s o c r e e r o o e er

co iip ti
er a o i ation t a y n th ma k ti ng f
ve a ss c s, o c rr o e r e o

g ai n a n d t mana g o th op ati on n a v y la g al
r o e er er s o er r e sc e .

T h p o p tu all it A fa m own d n n to k n n “
-
e r s ec s c s r er e ,
o -
s c , o

p ofit
r iation t ha ndl and ll g ai n at o t f it
a ssoc o e se r c s or s

fa m r m mb
er d ign d t t bili z ma k t p i
e er s, es e o s a e r e r ces,

e li mi nat p ulati o n and mani pul a ti on an d fu n i h d

e s ec ,
r s a e

qu at d i t t fa m
e cr e o r er s .
”

Cl a ly th volt f th fa m aga in t th abu

e r , e re o e r er s s e ses,

re al and imagi na y f th p nt ma k ting y t m i r , o e r ese r e s s e s

n t a
o v oluti n a y mo v m nt di t d again t th fo nd
re o r e e r ec e s e u s

ti o n f th p
s O nt o i al d f whi h th fa m hav
e rese s c or er, o c e r ers e

w
alw ay b n taun h uppo t
s ee s D oubtl th
c fa m s r er s . ess, e r er s

o f No th D akot a w i ll p
r ntly g t id f th va g ant r ese e r o e r

o i al i t h h av
s c s s b a dl y m ddl d and di
o dit d th
e so u e scre e e

mov m nt w i th th i va gu th o i
e e a n d th i wo f l la k
e r e e r es e r u c

o f bu i n s xp i n ess A ft ethat th mo v m nt w ill

er e ce . er e e e

doubtl o ntinu in a an and mo bu in l ik way

ess c e s er re s ess e .
 SE L E C TE D L I S T O F B O O KS I N
E N G L I SH
GE N E RAL A N D H I S TORI CAL
B a k J E lli B iti h So iali m 1 9 0 8 S ibn
r er, . s . r s c s . . cr er .

B M A Hi to y f B i ti h So ial i m 2 v l 1 9 1 9
w
eer, . s r o r s c s . o s . .

B ll ( L ondon )
e .

Bli N En y lop di a f So i al R fo m 1 90 8 F u nk
ss, e c c e o c e r . .

an d W a
gnal l s .

C o I B E ntial f So iali m 1 9 1 2 M a milla n

r ss, ra . sse s o c s . . c .

E ly R T So iali m and So ial R fo m 1 89 5 C ow ll

, . . c s c e r . . r e .

E n o R C K ( di to ) M od n So ial i m 1 9 0 7 S i b
s r, . . . e r . er c s . . er

ner .

Guth i Will i a m B So iali m B efo e the F n h R l u

r e, . c s r re c ev o

ti on 1 9 0 7 M a m ill an
. . c .

H il l quit M o i ,
Hi to y f So i li m i n th United rr s . s r o c a s e

State 1 9 1 0 F unk and W gn l ls . . a a s .

H gh n J
u a i W Am i an So iali m f th Pres nt
, ess e . er c c s o e e

D ay 1 9 1 1 L an . . e .

Ki kup T ho ma s a nd P a
r , E dwa d Hi to y of S ocial ,
e se, r . s r

i m s1 9 14 .M a millan . c .

L a i dl Ha y W So iali sm in T hought and A ti on

er , rr . c c .

1 920 M a m illa n . c .

Mav o J am r, An E onomic H i sto y of R u ia 2 v ol s

es . c r ss . .

19 14 D utton . .

M en g Anton T he Ri ght to th Whol P od ce of

er, . e e r u

L abo 1 899 M a mill a n

r . . c .

R us ll B t and P opo d R oad s to F edom 1 9 19

se ,
er r . r se re . .

Holt .

S hal ffle, A T he " uintessen ce of So i ali m 1 8 80 S ib n

'

. c s . . cr er.

253
25 4 S E LE C TED LI S T OF B OO KS I N EN GLI S H
S el igman , E co n omi In te p r ta ti on of
E R A . . . T he c r e

Hi to y 1 9 0 2 Columb ia U ni ve ity
s r . . rs .

S p ar go J ohn nd A n
, G o ge B L E l ment of , a r er , e r . . e s

So i alism 19 1 2 M a mi lla n
w
c . . c .

S pa go J oh n S o i ali m : a Summa y 1 9 1 8 M a mill a n

r , . c s r . . c .

S todd a rt J T T h N , S oci al i sm : an Impa ti al I nqui y

. . e e r r .

1909 H odd 8 Stoughto n ( L o ndon )

. er : .

Wall in g Willi a m E So i ali sm s I t I s 1 9 1 2 M a cmillan

, . c a . . .

W llin g Stok
a ,
H u gh n nd L a i dl r ( d i to ) T
es,h a a e e rs . e

So i ali m f T od ay 1 9 1 6 Holt
c s o . . .

Vand e v ld E mi l T he St a te v S o iali m 1 9 1 9 K e r
r e e, . s . c s . . r .

E X PO S ITIO N OF SC IE N TIFI C S O C IALI S M

B oud in L ou i s B
,
T h eo eti cal Sy stem of Ka l M a x . r r r .

K
1 907 . err .

D L
e neo D a ni l So ial i t R o n t ti o n f So i ty
,
e . c s ec s ruc o c e .

19 18 N Y L abo N w C . . . r e s o .

Eng l F d i k So i l i m U t p i a n a nd S i nti fi
e s, re er c . c a s ,
o c e c .

1892 K . err .

F a b ian E a y 19 13 B all Publi h ing C ( Bo t n )

ss s . . s o . s o .

F a in a L oui C
r ,
R v olutiona y So i ali m 1 9 1 8 C m
s . e r c s . . o

mu nist P ress .

H il l quit, M o i s S o cial i sm in T h o y and

rr . e r Pr a cti ce . 1 909 .

Ma illa nc m .

H yn d ma n H M Ev oluti o n f R v oluti on 1 9 2 1 Bo ni
, . . o e . .

Liv i ght er .

Kaut ky Ka l T h Cla St uggl

s ,
1 892r K . e ss r e . . err .

K aut ky Ka l So i al R vol tion 1 9 0 2 K

s ,
r . c e u . . er r .

Ma x K a l Capit l ( 3 v ol )
r ,
r l I 1 8 67 ;
. l II a . s . vo .
, vo .
,

1885 ; l I I I 1 894 K vo .
, . er r .

Ma x Ka l a n d E ng l F d i k T h Co mmuni t
r ,
r , e s, re er c . e s

M a n i f to 1 8 4 8 K es . . err .

Pl kh n fl G o g A na h i m a nd So i a l i m
'

e a o ,
19 12
e r e . rc s c s . .

K err .
25 6 S ELE C TED LI S T OF B OO KS I N EN GLI S H
S imkh ovitch, V . G . M a rx ism v e us S o ci al i sm rs . 19 13 .

Holt .

S k lton O D
e ,So i ali m a C i ti al An aly i 1 9 1 1
. . c s , r c s s . .

Houghto n M ifll in .

S mb t W n
o ar , So ial i m an d th So ial M ov m nt
er er . c s e c e e .

1 9 09 D tton . u .

S p a g J ohn Ka l M a x H i L i f and W o k 1 9 1 0
r o, . r r : s e r . .

Hu b h e sc .

T owl W G and R ay W So iali m I t P o mi and

w
er, . .
, , . c s : s r se

F a i lu 1920 King ( L ondon )

re . . .

T uga n B n ky M M d n So iali m 1 9 1 0 All n

-
ara o s ,
. o er c s . . e

( L ondon ) .

d T n l m nn G W
e u ze T h Sup ti ti o n Call d So iali m
a , . . e er s e c s .

1911 All n ( L ondon )

. e .

Va ughan B na d So i ali m f om th Ch i ti an St nd
,
er r . c s r e r s a

po i nt 1 9 1 2 Ma millan . . c .

V bl n T ho t in P la
e e ,
f S i n in M od n Ci vil iz a
rs e . ce o c e ce er

ti n 1 9 1 9 Hu b h
o . . e sc .

Wi th Ha tl y T h Ca f Cap i ta li m 1 9 20
er s, r e . e se or s . .

D utto n .

S Y N D I C AL I S M A N D T H E I W W . . .

B i
r sse nd n P aul F e T h I W W A S t dy f Am i an
,
. e . . : u o er c

Syndi al i m 1 9 1 9 L ngm n c s . . o a s.

B ook J oh n G Am i an S yndi ali m T h I W W

r s, . er c c s : e . . .

19 19 M a m illan . c .

Clay S i A th,
S yn di al i m an d L abou
r r 19 11 J oh n
ur . c s r . .

M ay ( L ondon )u rr .

E t y J A R v oluti on a y S yndi ali m 1 9 1 3 King

s e , . . e r c s . .

( L ondon ) .

L vi n L o i Syndi al i m in F a n
e e, u s 19 14.
L ngm n c s r ce . . o a s .

L w i A D Syndi al i m an d th G n al St ik 1 9 1 2
e s, . . c s e e er r e . .

Unwin ( L ondo n ) .

M a donald J Ram a y S yn d i al i m 1 9 1 2 Co n t bl
c ,
. s . c s . . s a e

( L o n do n ) .
 S ELE C TED LI S T OF B OO K S I N EN GL IS H 25 7

S ott J W Syndi ali m and Philo ophi al R li m

c , . . c s s c ea s .

19 19 Bla k ( L ondon ) . c .

Snowd n Philip So iali m and Syndi ali m 1 9 1 3

e , . c s c s . .

Colli n ( L ondon ) s .

Spa go J ohn Syndi ali m Indu t ial Uni o ni m an d

r ,
. c s , s r s

So i ali m 1 9 13 H b h
c s . . ue sc .

GUIL D S O C IALI S M
Col e, G D H L abo i n the Co mmonw alth
. . . r e . 1 9 19 .

Hu b h e sc .

Col G D H Guild So iali m R ta t d 1 9 2 0 P a on

e, . . . c s es e . . rs s .

( L ondon ) .

Col G D H So ial T h o y 1 9 2 0 Stok

e, . . . c e r . . es .

Col G D H S l f G ov n m nt i n I ndu t y 1 9 20
e, . . . e er e s r . .

B ll ( L ndon )
e o .

D ougla C H E onomi D mo a y 1 9 20 Ha o t
s, . . c c e cr c . . rc ur .

Hob on S G National G ild 1 9 1 9 B ll ( L ondon )

s , . . u s . . e .

Hob on S G Nati onal G ild a nd th St t

w
s ,
. 19 19 . u s e a e . .

M a m ill an c .

F nty A J
e ,
O ld W o ld f N . 19 17.B ll r s or e . . e .

F nty A J G uild and th So ial C i i 1 9 1 9 All n

e ,
. . s e c r s s . . e

U nwin ( L ondon ) .

R kitt M au i B and B h f C E T h M anin g

ec ,
r ce .
, ec o er , . . e e

f Nati onal G ild

o 19 18 M a millan u s . . c .

T aylo G R S Guild S t a t I t P in ipl and P o i

r, . . . e: s r c es ss

b il iti 19 19 M a millanes . . c .

W bb Sidn y and B a t i
e ,
Con t it ti on f th S iali t
e e r ce . s u or e oc s

Commo nw alth f G at B itain 1 9 2 0 L ngm n e o re r . . o a s .

B OL S H E V I S M
A b n l l i E ti nn
u o eBol h v ik R i a 1 9 2 0 Knop f
,
e e . s e u ss . . .

B a il fo d H N T h R ian W o k R p bli 1 9 2 1
r s r , . . e u ss r er s
’
e u c . .

Ha p r er s .

Bulla d A thu T h R u ian P ndulum 1 9 1 9 M

r ,
r r . e ss e . . ac
25 8 S ELE C TED L I S T OF B OO KS I N EN GLI S H
H ill quit, M orri s . From Marx to Lenin . 19 2 1 . T he Han
d
for Press .

K aut ky K a l D i t to h i p f th P ol ta ia t 1 9 2 1
s ,
r . c a rs o e r e r . .

A pp al t R a on Gi a d Kan a
e o e s ,
r r , s s .

L nin N So vi t a t W o k 1 9 1 9 R n d S h l
e , . e s r . . a c oo .

L nin N T h Stat nd R v olutio n 1 9 1 7 All n

e , . e e a e . . e

U nw in ( L o ndon ) .

L n in N an d T t ky L P ol ta ian R v oluti on in
e , .
,
ro z , . r e r e

R u ia 1 9 1 8 Co mmuni t P
ss . . s r ess .

M il i k
u P a ul
ov, Bol h v i m An I nt na ti onal D a ng
. s e s : er er .

1 9 20 S ib n . cr er .

O lgin M J ,
T h Soul f th R u i a n R v oluti n
. . 19 17 e o e ss e o . .

H lt o .

P l ky L
a sv o s T h E o n o mi
,
f C o mmu ni m
eo .192 1 e c cs o s . .

Macmill an .

P a ul ,
E d n and C da e C eative R ev oluti on 1 9 2 0 e r . r . .

All n 8 U nw in ( L ondo n )
e 1 .

R o s E dwa d A T he R u ian Bol h vi k R v olution

s , r . ss s e e .

192 1 Centu y . r .

R ussell B ert an d Bol h evik T h o y 1 9 2 1 H a cou t

,
r . s e r . . r r .

S a ck A J
,
Bi th f th R u ia n D mo a y 1 9 1 8
. . r o e ss e cr c . .

R us i a n In fo m ation Bu eau
s r r .

Spargo J ohn Bol h v i m 1 9 1 9 Ha p e

, . s e s . . r rs .

Sp a go J ohn T he G at t Fa ilu e in all Hi to y 1 9 2 0

r ,
. re es r s r . .

Ha p s r er .

T otsky L eo n O u R v olutio n 1 9 1 8 Holt

r ,
. r e . . .

T t ky L on
ro z ,
T h Bol h v ik i an d W o ld P ce
e . 19 18 e s e r ea . .

Bon i L i ve ight r .

W alli n g W E Sovi ti m 1 9 2 0 D utto n

, . . e s . . .

W ll s H G R u ia i n the Shadow 1 9 2 1 D o an
e , . . ss s . . r .

W illia ms A R L en i n the M a n an d H is W o k 1 9 1 9
,
. .
,
r . .

S c ott S ltz e er .

W il cox E H R ussi s R uin 1 9 1 9 S cri b n r

, . . a
’
. . e .
 I ND E X
A ad mi S oci l i t 237
c e c a s s, Bo u din L B , q ed, 69 , 9 8 , uot
Adam nd S mn 9 5
, . .

s a u er, 1 4 7, 1 79 , 1 94
Adam E F n o ia l aving
s, . .
, o s c s , ow
B l ey, L , 93 A . .

12 1 B oycottin , defi ned, 34

Ag i l t al ta ti t i
r cu ur G s s cs, er B ra il sfor , H N 22 0
m any nd Am i a 1 64 ; a t B ain wo k a a to in abo
.

a er c r r , f c r l r
va ian wi th o ia l i ti p ,

re in
e ffi c e cy , 8 2

w
r ce s c s c
di t ion 164 1 65
c Bo n
dy Economic, u h ea l thy con
Ag i l t ta t i ti f i tion
, ,

r cu 1 63 ; u re, s s cs o d of, 122 , 1 2 3

Z al an d l gi B ton a i
,

N e e e s ur T E , c uses of cr ses,
l at ion in R ia
. .
,

u ss 15 0
B t l B i h o p q o t d 14 3
, ,
’

u er , s u e
Al b g H n y G 223 228
, ,

s er e r
Am i an F d at ion f Labo C a p i ta l i m vil f 122 123 ;
, .
, ,

er c e er o r, s e s o
18 9 ; o pp o d b y th I W W b n fit
, , ,

se e e e f 124 126 ; s o p r ecu er

a tiv pow f 15 7 ; p ot
. . .
, , ,

39 e er s o r eo
Am i an S o ial i t Pa t i t iv t n n i f 15 8 ; p ph
,

er c c s r es e e de c es o rO

n m at d 49 5 0 f fina l ov th ow
,

e u er e ec y o f er r o
Am i an S ga R fining C 2 02 ; t ngt h f 2 03
, , ,

er c u r e o s re o
p od t ion 1 69 C a p ita l i m Evo l tiona y 20 1 ;
,

r uc s u r
Ana h i m d ib d 4 6 a m i tak n id a 20 1
, , ,

rc s escr e s e e
C a p i t al i t C l
, ,

Th s 1 1 7 1 19 a ss, e,
B ax B l fo t 28 C a p i ta l i t two l a
,

, e r , s s, f 1 17 c sses o , ,

B b l A g t 28 9 8
e e u us 1 18
B l l o H i l ai 3 1 C h i t ian S o ia l i m
, , ,

e c, re, r s 26 29 ; c s

B g V i to fo i gn m fi t w it n 27 ; B b l n , ,

er er , c r, re co rs r er o e e o
2 8 ; B ax H yn dm an
, , ,

m 148
er ce, n 28 o
B n t in E d 1 5 6 158 1 71 n 2 8 ; F l in t
, , ,

er s e o n 29 o
B v i dg W H 13 7 C la Th o y f o igin f
, .
, , , , , ,

e er e, sses, e r o r o
B iol ogi a l nd S o ial E l 1 8 4 ; ont a di to y h i to i a l
. .
, ,

c a c vo u c r c r s r c
t ion 19 7 da t a in t h o y 1 8 5 e r
Bol h vi k i T h 44 2 25 C la
, ,

s e e, ss S t ggl Th 67 ; S k l
ru e, e, e
B l h vi m d i b d h i to y t n q ot d 6 7 Ma xian
, ,

o s e s escr e s r o u e ou , r
t h o y f 18 1 t q ; n
, , , ,

4 1 43 ; E l y
-
n 4 5 ; th Di o e c e r o e se co
C om m ni t t di t y h i to i al da t in
, , , .

t ta or sh ip f th o e u s ra c or s r c a
Pa ty 208 t q ; Y l 18 5 ; i n n t t i m 18 7 ; ,
“
r e se e r ece es,
l ow m d n ondi tion in 188 ;
.
, ,

nd
s
”
R d 2 09 ; i
a
“
e s,
”
s o er c s
re vol tiona y Ma xi m 236
u r r s Ma x p op h y nf l fi ll d
r
’
s r ec u u
,

e
B ol h vi t T h lo
, ,

18 8 ; f t
“
s e th
s s, e, a r e e c se f th 19 1
u u re o e,
co m m ni ni t u f th R o s s
”
o e us C ol G D H n G il d S o ial
e, o u c
ian o ial vol tion 2 14 ;
. . .
,

s s c re u i m 40
s

ont ol f R ian ,

C o mm ni t wh th nam i
,

secu r e c r o u ss u s s, ere e e s
G ov nm n t 2 17 ; th
er ope e c u app l i ab l 45 wi l l do btl
c e, ; u ess
d et a t 2 1 8 ; a m ino i ty p fai l in R ia 23 7
,
’
r ar u ss
C omm ial C a p i ta l 108
, , ,

ty, 2 19 ; in 19 18, 2 19 er c ,
2 62 I N DEX

C omm ni m 45 fi t u s f rs u se o El im ination f th Mi ddl o e e

wo d 46 i x t m o ial
r ;
,

s e re e s c C la 1 73 t q
ss, e se
,

on B ol h vi m 45
, .

i m 46
s Ely R T s e s
C omm ni t Mani f to 18 48 14 Em o tional i t 206 h a t
, , . .
, ,

u s es ; s s, ; c ar c er
p i i t f 44 q ot at ion f om ff t f a pp a l m a d
, ,

s r o ; u s r o f 2 06 ; e ec o e e

n th Mi ddl C l a b y n th p o p l a min d 20 6
, ,

88 ; o e1 74 e ss, o e u r
182 18 3 ; a l l to a m
, , ,

19 4 ca r s, 20 7
an M a
, ,

1 9 5 208 u
gl d T C f u se s O
C mm ni t Pa ty g n al l y C i
. .
, , ,

o u s r e er 15 1
r ses,
Engl F i d i h 15 3 1 5 4
, ,

2 08 2 36 d f 2 10
; cr ee o ; es, r e r c
T nth C on g
, , , , , ,

e f 2 34 f r ess o ; er 68 1 4 5 1 46 1 8 3 19 4 1 9 7
m n t in 22 6 l ing p ol i t i Enl i gh t n d S o ial i t 19 f
, , , , , ,

e ; ru e e c s s, ; or
l fo in R ia 226 in m l a 20
,
ca r ce u ss ; u
divi d a l l ib t y Evol tion B iol ogi al nd S
, ,

u pp d er su r esse u c a o
b y in R ia 228 ivi l iza
,

u ss ; c cia l , 1 97
t ion i mp i l d b y 229 R
, ,

er e ; u s~
ian m mb h i p f th 232 Fab i n S o i l i m 29 Obj t
,

s e ers o e, a c a s ; ec s
C omp l xi ty f S o ia l Fo
,

e o 58 c r ces, o f 30
C on n t a t ion f C a p i ta l Ma x Fab i n S o i ty T h 29 om
,
ce r o r a c e e, ; s e
ian th o y f 160 1 72 n
, ,

e r o ; a m mb e f 29 er s o

Fa to f S a i ty T h 76
, , ,

ti ip t d by P q

w
c a e 161 ec u eu r , ; c r o c rc e,
o C ommi tt R po t 166 f S o ia l Ut i l i ty T h
,

P j F
7;
u ee e r a c or o c e,
C on tant C a p i t a l
, ,
”
s 1 29 n ; co
t t d by Ma x wi th i
re a e r
,

var Fa bman Mi h l 225

r c ae
api ta l 133 Fa m L bo Pa ty 50
, ,

bl e c r er a r r
C ont a d t ion ial i t 147 Finan ial Pow T h 166
, ,

r fSic s o oc s s, c er , e,
C i r ses, S o ial i t t h o y f 144
c s e r o Fl ing F M n p di tion 66 o re c
Fl int R ob t 29
.
, , , .
, ,

1 59 R db t ; on 144 E er u s, o ; u er
1 46 Ma xian Fo i gn C omm ,

14 8 V i t o
, ,

gl es,n 1 45 o ; r re er ce, ; c r

i w f 145 S o ial i t th o y
, ,

v e o ; c s e r B g n 14 8
er er o
f i fa l l f on t Fo i F ancoi l 14
, ,

o s 15 0 se, ; se c
-
ra u r er , r s,
di t ion S o ia l i t F ank l in Fab ian 233
,

c f 15 1 o ; c s r
p op h y n ning th final
,

F iday Davi d n S h f L , ,

r ec co cer e r o a re o a
i i g o ndl
, ,

cr s s 154 ; d
r u ess, e b 1 12
or ,
fin d 155 e F t
u u re f th C l a S t ggl
o e ss ru e,

C i i n t 1 56
,

Th P 19 1

w
r s s, e rese
C nni ngh am W
,

u 9 1 92 , ,

G n al F d ation f Labo 33
.
,

e er e er o r,
Da rini m nd Ma x 196 s a r G n al S t i k T h
e er 35 r e, e,
D avi d D Ed a d 98 G i dding P o f F H
,

r. u r 6 s, r

Di t ib t ion f W al th 110 ; G ifi n S i R ob t 9 2
, , . . .
,
‘

s r u o e e r er
W 1 King on 1 10 1 1 1 Gov nm nt S ial i t i d f
, , ,

er e oc s ea o
D om t i P of ional 5 8 Ma xian vi w f na ow
. .
, , , ,

es nd c a r ess ; r e o rr

Wo k 14 1 143
, ,

r er s, 63
,

G i l d S o i l i m 39 a g m n t
u c a s ; r u e

E onom i Int p ta t ion f H i f 39 4 1 C ol

,

c c er re o s o n 40 -
; e o
t o y 5 1 th H g l ian M th
, ,

r ; e e e e
d 5 2 th Ma xian Th o y nd Da win 182
,

o ; e r e r H g l
e e a r
Mod n Exampl 5 7 H g l G W F h i to y
, , ,

53 ; er es, ; e e 51 ; s r

R jt d a g i d 67 a o ding t 52 dial ti f
, . . .
, ,

e ec e as u e, cc r o, ; ec c o
E onomi p oph y Fut i l 66 twi t d by Ma x 5 3
,

c c r ec , e, s e r ,
2 64 I N DEX

S o ial i t ont adi t ion

c s c r c s re Ma xi m with Ma x l ft t
r s r e ou

ga ding 1 32 m y di p l a
,

r ; a s ce 99
l ab o o p ativ Ma C l b at d Pu zl 106
,

13 4 f ’

1 0x
r, ; er es o r s e e r e z e,
1 35 m a k ho t day
, ,

; f es or s r er s,

1 38 not b l i gh t 13 9 h
; in a ; as M h ing F anz 9 9
e r r
a d d m and f m n 140 M n not di p l a d b y wom n
, , ,

cre s e e or e e s ce e

M ll k W H p nt g f 14 0 ; d man d f in a d
, , ,

a oc er ce a e o e or , cr e se
l an d nt in Engl and nd b y m a h in y 1 40
, . .
,

re a c er
Wal 1 14
,

es, M ensh iv ik i, T h e, 42 ; chi ef er

Mal th Thoma R 8 5 on
u s, s ; ror of, 4 3 , 4 8
p op l at ion 8 6 ; Ma x twi t
,

M n vi
.

u r s s e sh e sts, T h e, 2 14, 2 1 7, 2 19

th o y f 89
e r o
,

Mi a
ddl e C l ss, T he, Ma xian r

Man C ont adi to y mot iv f p op i inat ion

,

r c r es o r h ecy of th e el m
5 9 ; non
,

onomi in t in t f -
ec c s c s o
,

o f, 1 73 , 1 80 ; fin de ed b y
a ial h a a t i ti f Ma x in i t
,

60 ; r c c r c er s cs o r , 1 74 ; a gr cu l u r e,
61
,

1 75 ; in an t in
m u fa c u r e, 1 77 ;
Man fa t ing 1 68
u c ur p o ion
r fe s s s a nki
d s ao
l l ed l b r,

nd xt n t f 1 68 1 7 1 t i o inan t
,

a e e O 1 77 is s l l d m 1 78 ;
Man fa t ing E tabl i hm nt p it in E op
, , ,

ers s ence of e, 1 79 ;

w
u c ur s s e s, ur

U S 1 68 an o ta to o ia i
b s cl e S c l sm, 1 80
M an fa t d G o d Va l Mi at ion a
. .
,

u c u re f o s, ue o g r s C u s es a n d i n cen
d t m in d 78
, ,

h o e er e tiv es of, 5 6, 62
Ma h al l Al f d t nda d f Min Fa ot
,

rs re s a r o e a nd rm C s s, 77
l iving among wo k in g l a Mi t W a
, ,

r c sses, chel l , esl ey, c u ses of cr i

94 ses, 1 5 1
Ma x Ka l 2 Fo nd f
r r ; u er o Mo a t o ia i t in R ia
der e S c l s s u ss ,
Mod n S o ial i m 9 p ith t
, ,

er c s ; e e s 4 3, 4 5
of x d 1 0 n C a p i ta l
e cuse ; o
,

Mo n o ia i
der S c l sm, O i in r g of,
i m 22 a d l p nal i ty Fo n
, ,
s ; ua er so 2; u der of, 9
not a Ma xi t 44 a Mo n o ia i I
, ,
“ ”
43 ; r s ; der S c l sts, deas of, 1 8 3
di i p l f H g l 5 2 on Mo To a
,

h m s, 1

w
sc e o e e ; su r re, S ir
p l val 70 h i dapt M a Mi a
,

w
us u e, ; s a a ul h l l , ch el G , 9 3
t ion 7 1 on l ab o val 74
.

; r u e,
75 a dm i ion to val 79 Na t ional In om 1 15 ; h di
, ,

w
ss as u e, c e, o s
f wa g t i b t d 115 1 1 6
,
81 n l 88

w
; o a o es, ; r u e
twi t th o y f Mal th 8 9 Na t ional Lab o P a ty 50
, ,
s s e r o u s, ; r r
p imi m nd Op ti mi m f Z a l an d In d t ia l l gi
,

ess s a s o N e e us r e s
n th t n h o l a t ion in 1 76 24 7 ;
, ,

90 ; o l 98 e e ur a ; p i ex er
d fini t ion f l ab o pow n f 248 th L ib L b
, , ,
“ -
e o r er , e ce o ; e a
l b at d p zzl Pa ty f 1 76 248
,
”

w
102 ; ce e rf e u e o r o
1 06 vi w on ma h in y 12 8 Non p a t i an L ag T h 50
, , ,

; e s c er r s e ue, e,
on nt ation f a p i tal 239 25 2 ; ha a t
, , ,

1 29 ; c ce r o c f 2 39 c r c er o ;
di a pp a an f o ia l hy o ganiz d 240 ow
, , ,

1 62 ; s e r ce O s c rg t h e ; r
o d 19 6 ont adi t ion f m mb h i p
,

r e r, ; c r c s o f
o 2 43 ; nd e ers a
2 10 th p op h t f l l t tat l t ion
, ,

; e r e o a sec s, d u es, 2 43 ; s e e ec
o ganizat ion in
,

2 11 1 9 1 6 2 43 ; r s
Ma xian Th o y T h 53 ; E 13 t a t 2 43 to ta l vo t
,

r e r e, u s es, f ; e o

g l e s 54 a ppl i a tion f,
ou , ;
,

c s o 19 18 244 No th D k ota
‘

; r a
,

l gi l a t ion
,

55 5 6 e s 19 19 2 44 th ; e
Ma xian vi w f i 145 S t at Mi l l ( a t D ak ) 24 7
, , ,

r e o cr ses, e r e ;
c ont adi t ion in 158 r c , som S o ia l i t m mb
e fc s e
,

ers o ,
 I

w
2 65

w
N D EX

25 0 ; a ti asal for m e th e re R vol tion H

e u h av Os, o e c
ov n nt No t 19 8 ; H yn dm an
,

g m er f h D e o r a cu r r e d n o
ko ta 25 1 di di t d at vol t ion f 1 99
,

; scr e e e u o
p nt 25 2 not a S o ial i t Ri a do Davi d Labo o t T h
, ,

rese ; c s c r r -c s e
mov m n t 25 2 da pt d b y Ma x 70
, , ,

e e ory f o a e r
No th Dakota P od t ion in
, , , ,

r r uc 71
t h l in f K J on ind t ia l
, ,
2 39 2 40 ; ree es o ao R db t
o er u s, us r
t ion op n t fa m in 24 1 i 144 145
.
, .
,

e o r ers ; cr ses,
l gi l a t ion 19 19 244 b nd R oh b a h P a l 2 3 2
, ,

e s ; o r c u
i f 1920 2 4 4 Mi l l R t t f M I
, , , ,

ssu e o d ; an o s o se 23 1
El vat o A o iation 245 l l B t an d 229
.
, , .
,

e r ss c ; R u sse er r
th B ank 2 45 H om B i l d R ia 2 12 ; two vol t ion
, , ,

e ; e u u ss u s
ing A o ia t ion 245 A t ion
re
xp t d 2 13 ; R vol t ion f
, ,

ss c ; c e u
f B ank 2 46
ec e e o
R vol tion f
, ,
o 19 0 5 2 15 ; e u o
1 9 1 7 2 1 5 2 19 ; Bo l h vi t
, ,

Ol gin M J 228 229 ont ol n gov nm nt

, , s e s s

O v p od t ion K ind f 1 5 1
.
, .
, ,
secu r e c r er e
i ,
er

Optimi m nd P i mi m f
r uc , o ,
2 17 t q e th S p m se e u re e
P ow in at p nt 22 0 ;
.
,
s a ess s o
S o ia l i t
er rese
nt y 22 1 ; C mm
, ,
13 8 7
th P
c s s,
Ow n R b t 1 14
e o er
,
e
ni t Pa ty th l fo
ea sa r ,
o u

Own h i p D ifi i n f 170
'
, , ,
s r e ru rce
today 226 ; E on m i ak
‘

er s , us o o , ,
c o c re
down in 2 26 ; B i t h
172
,

nd r a
D ath at in 22 7 ; In di
,

Pa tial
r D sse er s, T h e i nt 18 ;
e

vi d al Li b ty m p
r

d in
es ,

vi w u

w
er ) r esee
i in pp i l
,

228 ; ivi l iza t ion

,
e s of, 18 , 2 1
c o er
P a sv ol sky, L eo, 224 , 234
n tantin 2 29 ; ind t ial r n t us r eco s ru c
,

P ecqu eur , C o s
P l at o 1 6 25
, 16 1 t ion f 23 1 ; th n mi ddl
o e e e
la in 231 ; a p i ta l i m m
,

Pol i t i al Ph i l o op h Vi ion
c ss co
, , ,
c s
ing b a k in 2 33
,
c s er s, s s
c
i a n C nt al Ex tiv
,
o f 14
Pop l a t ion In a f in p
,
R u ss e r ecu e
u cr e s e o ca C omm i tt 220 ; m mb h ip
o nt i 20 1 ee,
, ,
e er s
it l i ti
a s
P od t ion La g S a l 1 68
c c u r es,
p ow f 220 er o
,

i a n E onomi S y t m
,
uc
R

w
r r e c e,
, , u s s c c s e
B akdown f 226
,
1 70
nd S k i l l d La bo
re o
R ian P a ant y ondi tion
,
P
1g
i n
ro ess o s a e r, u ss e s r c s,
a tion t at t 22 1 t ,
7
P ol t a ia t in R ia 2 1 1 2 13
c s, s u s, e c e

q ; d p iv d f n
.
, ,
r e r u ss
P oph y 66 i g o ndl 154 2 29 ;
, , se e r e o o
l i v d b y a t ion f T n th
.
,
r ec ; s r u ess, “
P o t tiv T n d n i 158
, re e e c o e
r ec e e e c es, C ong 23 4
”

P o dhon P J n p op ty
r ess,
r u

12 1
, . .
, o r er , R ian R vol t ion f 19 17
u ss e u o ,

2 15 t
P j
u o C ommi tt R po t 166 ee e r , u ss
q e

R ian S ovi t s nd T a d
, se .

e a r e

R a on Pa ion 204 ol Union v ing a t p nt

s reco er rese ,
e s or ss ; as s e 2 25
m ot iv f a t ion 2 04 20 5
,

es o c
R n t In t t nd P ofi t 120 ab o
, ,

e er es a r s, S 34 e,
2 19 not
, ,
123 k
ac
R vi ioni t 4 d fin d 10
e
S t Th oma f Aq ina Id a
, ,
e s s s, ; e e ;
h av ab ndon d Ma x 205 , . s o u s, e s
e a e r ; f 27
o
a nd
g iv n p m o t f h i e u s
,

o s S aving T h
,

fi t f 1 14 12 1
’

th o
e e ec o
S a i ty T h F to
, , ,

18 1
e ri es, c rc f 76
, e ac r o ,
2 66 IN DE X
S ch iifil e,A E F 224 o ial R vol tion T h 193 S c e u e,

i nt ifi S o ial i m l 3 ; m t h od
. . , ,
“ ”
Sce 2 07 f th 194

w
c c s ; e o e, ;
T he ce nt o f 23 ; n er M x ont di tion g d
c re o
, ,

u ar
’
s c ra c s re a r

i ntifi h a t f 5 0 ; ing 19 5 Ma x i d
,
’
sc e c c r a c er f 19 8 o ; r s ea o ;
M x p oph y not f l fi l l d , , ,

m t b jdg d 205
’
h o us e u e ar s r ec u e

S i n t ifi S o ial i t
, ,

c e 9 2 5 ; in
c c s s,
n i t n y i 84 S o ial i t R vol tioni t
,
co s s e c o R c s e u s s, us

S o tt S i Wa l t on l p o y
,

c r i 48 49 er, e r s s a, -

i l Unity T h F to
, ,

91 S f o a e ac r o

t f S o ial i m T h 22 5 0
, ,

Sec s o c p7 s e,
fdom 18 6 ; p ing f 19 9 S ovi t in R ia 214 216 22 1
, ,

S er a ss o e s u ss -

S ha f Lab o
, , , ,

re Th
o 1 1 1 1 12 2 32 r, e,

S h aw B na d 2 12 S p a go Jo h n 219 223 2 25
,

er r r
S p a go nd A n
, ,

S imk h it h V G 44 68 14 7
, , , ,
ov c 17 1 r a r er ,
S tan d d O il C omp any p o d
. ,
, .
, , ,

1 62 1 9 5 ar r uc
S i mon A M 165 t ion 169
, ,

s,
k l t on O D n l a t g S ta t C a p i tal i m 3 1
. ,

w
e o c ss s ru e s
in S ta t S o ial i m 3 0 ; Wa l l in g
, . .
, ,

g l e,6 7 n n g p th o o e a e e c s
Ma xian th o y 10 7
r n 31 e r B l l o n 30 H i l l o ; e
,

c o ;
S m al l p o p t y own in U S i in a and
, , ,

r er
q t n 3 3 N Z l
er s u o ; e e

nd No th Da k o ta 250
. .
, ,

11 6 b a r ; a

S o ial D m o a t ho d b y S yn di al i t
,

c 48 e cr s, nd rr e c s s a

S o ial i m
c a s i at 3 o th 4 7 car c u r e, er s,

ha
c t f mov m nt 4 5 S ta t S o ial i t i d
rac er o f 32 3 3
e e ; e c s s, eas o
app al f 5 th S t a t ifi a t ion f A l l S o i ty 1 8 6
, , , ,
e d f 7
o ; e cr ee o r c o c e
on i d d 1 1 n t a i S t i ht fi D F H n h a
, , , ,

21
'

; c s er e ; o sc re o r. o s re
n 12 o th dox do t in f ab o
, ,
, . .

e ce, ; r 11 2 o c r es o r,
of 16 18 th t f 22 S pl V l Ma xian th o y
; e sec s o
p op agan d d t ti
, , , , ur us a u e, r e r
50 ;
fi t
r
f wo d in
f 1 02 1 2 6 a a on t an ac cs
o ; c cr e e ex
a f 103 two i d to
, ,
of 24 ; rs mp l u se o r

Engl i h 45 na h i ti t n e o ; s es
,

th p i t
,
s ; a rc s c e
122
in 47 di ff nt in S yndi al i m 33 e c u r e,
,

d n ie c es ; ere
v y o n t y 48 va i t i S yn di al i t i d a f mod n
,
c s ,
e er c u r ; r e es
o f 64 b i t o i
,
c s s, e s o er

to ind t i l union
,
of 48 ; s u r ce o ; s r
,

x p l nat ion f di ffi l t 36
,
as us r a s,
ca l e a o cu
th o y f o ial
, ,

64 ; as a e r o s c ev o
l ti n 22
u o Tayl o W J Langwo thy r, r
a i
. .
,

S o ia l i t Fa tion in v y
,

c s c f 1 5s1 e er c u ses o cr ses,

cou nt y 50 r Th Th i d Inten t ional b e r r a , o

S o ial i t P a ty pl i t n a l y
,

c s jt f 2 34
r e r ec s o

Th omp on S l n 171 s ,

ev ywh 2 35
er er e, s aso
T i i n in En g an d
, ,

S o ia l i t Th o y i fal
c s 150 T he r p l A l l s
l se , e r e a ce ,

S o ial i t
c Th fi t 1 typ
s s, 1 90 e rs ; es
o f 8 ha a t ; f 13 c Towl nd R y 28
r c er o
,

a re er a a

opt imi t i 13 8 7 d i f Town l y A G 239 243 250

, , ; ,

s c, ; es r e o e

p a ty ni ty 1 3 vot f T ad Union in R ia 22 4
, , , . .
, , ,

f or r u ; es o r e s, u ss ;
t o k in t ad
, , ,

in U S 15 t
'

q s c r e e se

g o ifi a t ion T ad Unioni t in F an 34
.
. .
,

o f 15 l ; f th r c o e r e s s, r ce,
p a t by 9 0 in on i t n y f T ot ky L on 2 13 2 15 2 16
,

s ; c s s e c o r s e
1 00 m nta l att it d
, , , , , , ,

; e f 143 2 17 2 19 u e o , ,