Contemporary Socialism
BY JOHN RAE, M.A.
SECOND EDITION, REVISED AND ENLARGED
New York
CHARLES SCRIBNER'S SONS
1891
PREFACE.
In the present edition the original work has not only been carefully revised, but very considerably enlarged. The chapters on "The Progress and Present Position of Socialism" and "Russian Nihilism" contain a few sentences retained from the first edition, but otherwise they are entirely new—the former necessarily so on account of the nature of its subject, and the latter on account of the importance of the fresh materials that have been recently given to the world. A new chapter has been added on "Anarchism," and another, of considerable extent, on "State Socialism." No apology is required for the length of the latter, for though State socialism is only a growth of yesterday, it has already spread everywhere, and if it is not superseding socialism proper, it is certainly eclipsing it in practical importance, and to some extent even modifying it in character. Revolutionary socialism, growing more opportunist of late years, seems losing much of its old phrenzy, and getting domesticated into a shifty State socialism, fighting a parliamentary battle for minor, though still probably mischievous, changes within the lines of existing society, instead of the old war à l'outrance against existing society in whatever shape or form. Anyhow the socialistic controversy in the immediate future will evidently be fought along the lines of State socialism. It is there the hostile parties meet, and it is well therefore to get, if we can, some more exact knowledge of the ground. Some of the other chapters in the work have been altered here and there for the purpose of bringing their matter, where necessary, down to date, or embodying fresh illustrative evidence, or occasionally of making the exposition itself more lucid and effective; but it is unnecessary to specify these alterations in detail.
April, 1891.
CONTENTS.
CHAPTER I.
INTRODUCTORY.
Revival of Socialism, 1—Extinction of Old Types, 2—Main Surviving Type, Social Democracy, 3—Its Two Varieties, Socialist and Anarchist, 4—Its Relations to Political Democracy, 4—Definition of Socialism, 5—Cairnes on Mill's Profession of Socialism, 6—Ruling Characteristic common to Old and New Socialism, 9—State Socialism, 11—Conservative Socialism, 13—The Minimum of Socialism, 14—First Rise of Social Democracy, 15—Rousseau, 16—Baboeuf, 17—Connection of Socialism with Democracy, 18—The Danger to Free Institutions, 24—Necessity and Probability of Wider Diffusion of Property, 25.
CHAPTER II.
THE PROGRESS AND PRESENT POSITION OF SOCIALISM.
National Conditions Favourable to Socialism, 31—Germany, 31—Progress of Socialist Vote, 33—Action of Socialist Party in Reichstag, 34—Party Programme, 38—Halle Congress of 1891, 40—France, 45—Anarchists, 47—Socialist Revolutionary Party, 48—Possibilists, 50—Blanquists, 53—The Socialist Group in the Chamber, 53—Austria, 54—Italy,
CHAPTER III.
FERDINAND LASSALLE.
German Socialists before Lassalle, 93—Favourable Conditions for Socialist Agitation in Germany, 94—Character of Lassalle, 96—The Hatzfeldt Case, 99—Theft of the Cassette, 100—Trial for Sedition, 101—Literary Activity, 102—Letter to Leipzig Working Men, 103—Foundation of General Working Men's Association, 105—Lassalle's Agitation, 105—His Death, 106—Funeral, 108—Political Views, 109—Idea and Position of the Working Class, 109—Functions of the State, 111—Economic Doctrines, 113—Anarchic Socialism of the present Industrial Régime, 117—Ricardo's "Iron Law" of Wages, 119—A National, not an International Socialist, 124—Internationally not Peculiar to Socialist Parties, 126—Reason of Socialist Condemnation of Patriotism, 127.
CHAPTER IV.
KARL MARX.
Reception of his Work on Capital,
CHAPTER V.
THE FEDERALISM OF CARL MARLO.
Rodbertus, 178—Professor Winkelblech (Marlo), 180—His Awakening to Social Misery, 180—Application to Economic Study for Solution, 181—View of Social Problem, 182—Heathen Idea of Right (Monopolism) to be replaced by Christian Idea of Right (Panpolism), 183—Liberalism and Communism both Utopias, 184—Federalism alone realizes Christian Idea of Right, 188—Natural Right of all to Property, 189—Right to Labour and to Fruits of Labour, 191—Necessity of Controlling Increase of Population, 192—Of Suppressing Unproductive Acquisition, 193—Collectivization of Land and Productive Capital, 193.
CHAPTER VI.
THE SOCIALISTS OF THE CHAIR.
The Name, 195—Held's Vindication of it, 196—Objections to it, 197—Founders of the Historical School, 200—Their Departure from Manchester Party, 202—Eisenach Congress, 202—The Historical Method,
CHAPTER VII.
THE CHRISTIAN SOCIALISTS.
Socialism and Christianity, 218—Views of St. Simon and Cabet, 218—Irreligious Character of Contemporary Socialism, 219—The Christian Socialists of England in 1850, 220—Those of Germany now, 223—The Catholic Group, 223—Ketteler, 224—Moufang, 230—Protestant Group, 233—Stöcker, Todt, 234—Christian Social Working Men's Party, 239—The Social Monarchical Union, 241—The Evangelical Social Congress of 1890, 241—Is there a Specific Christian Social Politics? 242—Christian Socialism in Austria, 242—In France, 243—International Catholic Social Congress of 1890 at Liège, 243—The Pope's Encyclical, 245.
CHAPTER VIII.
ANARCHISM.
Recent Activity of Anarchists, 247—Individualist Anarchists and Communist Anarchists, 248—Latter are Ultra-Socialist, 249—Ultra-Democratic, 250—Proudhon's Anarchic Government, 250—No Representative Institutions, 251—Prince Krapotkin's Plan for Housing the Poor, 252—The Russian Mir the Anarchist Model of Government, 252—Anarchism Atheistic, 254—Ultra-revolutionary, 255—Propaganda of Deed, 256—Disunity and Weakness of Anarchism, 257.
CHAPTER IX.
RUSSIAN NIHILISM.
Haxthausen's Opinion of Russia's Safety from Socialism, 259—Successive Phases of Nihilism, 260—Origin of Nihilism, 261—Influence of the Rural Commune on Revolutionary Thought, 262—Decabrist Conspiracy of 1825, 263—Extreme Opinions at Russian Universities in Reign of Nicholas, 264—Ascension of Alexander II.,
CHAPTER X.
SOCIALISM AND THE SOCIAL QUESTION.
A Social Question recognised by Contemporary Economists, 297—Mr. Cairnes on the Situation, 297—Socialist Indictment of Existing Régime, 299—1st, the "Iron Law of Wages," 300—Alleged Deterioration of Wage-Labourers' Position Unfounded, 301—Their Standard of Living Better, 302—Their Individual Share in the National Wealth more, 304—The "Iron Law" Misunderstood by Socialists, 305—The "Iron Law" Itself Unsound, 307—The Rate of Wages really Depends on the per capita Production, 307—Prospects of Increasing per capita Production,
CHAPTER XI.
STATE SOCIALISM.
1. State Socialism and English Economics.
M. Léon Say on State Socialism, 345—State Property and State Industries in Germany, 345—Mr. Goschen and others on Change in English Opinion regarding State Intervention, 346—Their Views Exaggerated and undiscriminating, 347—Little done in England in Nationalizing Industries, 348—Much done in enlarging Popular Rights, 349—English Thinkers never Believers in Laissez-faire, 351—Except Mr. H. Spencer, 352—Adam Smith's "Simple and Obvious System of Natural Liberty," 353—His Theory of Social Politics, 356—Ricardo's Views, 359—McCulloch's, 360—On the Manufacturing System, 362—On Crises, 363—On Irish Pauper Labour, 364—On Factory Legislation, 366—On Housing the Poor, 366—On the Poor Law, 368—The So-called Manchester School, 372—The English Theory of Social Politics, 373.
2. The Nature and Principle of State Socialism.
Different Definitions of Socialism, 374—Origin and Meaning of State Socialism, 379—The Social Monarchists, 380—Rodbertus,
3. State Socialism and Social Reform.
Cobden's Praise of the Prussian Government for its Social Work, 393—Property, a Requisite of Progress, not of Freedom, 394—Limits of Legitimate Intervention, 395—Short Definition of State Socialism, 399—Error of Plea for State Socialism as Extinguisher of Chance, 399—As Saving the Waste from Competition, 400—Wastefulness of Socialism, 401—As shown in Samoa, 401—In England under Old Poor Law, 402—In Brook Farm, 402—Idleness the Destroyer of the American Owenite and Fourierist Communities, 403—Idleness, the Great Difficulty in the Shaker and Rappist Communities, 405—"Old Slug," 406—Contentment with Squalid Conditions, 407—Special Liability to Mismanagement, 408.
4. State Socialism and State Management.
Natural Qualities and Defects of State as Industrial Manager, 409—Post Office, 410—Dockyards, 410—Forestry, 412—Mint and other Forms of Attesting, 412—Monopolies, 413—Municipal Management of Gas and Water Supply, 413—Land Nationalization, 414—State Railways, 415—State Insurance in New Zealand, 417—Results of Joint-Stock Management and Private Management in Massachusetts, 417.
5. State Socialism and Popular Right.
Why Impracticable Legislation is Socialistic, 418—Rule of Intervention for Realizing Rights, 419—Right to Existence, 421—Right to Superannuation, 421—Right to Labour, 423—Problem of the Unemployed, 425—Free Education, Libraries, Parks, 427—Where Stop? 427—Legal Fixing of Prices, as in Fares and Rates, 428—Of Fair Rent, 429—Of Fair Wages,
CHAPTER XII.
THE AGRARIAN SOCIALISM OF HENRY GEORGE.
Mr. George Predicts that his Book would find Apostles, 441—Fulfilment of the Prediction, 441—Sisyphism, 442—Loses His Religious Belief through Perception of Poverty, 443—Recovers it again, 445—1st, His Problem, 445—Its unverified Assumption, 445—Evidence of Facts against it, 448—Average Scale of Living has Risen, 449—Proportion of Paupers, unable to obtain it, has Declined, 449—Special Decline of Able-bodied Pauperism, 450—Increase of Length of Life, 452—Mr. George Changes his Problem from one of Quantity to one of Proportion, 453—Rent really no larger Proportion of National Wealth or even of Agricultural Produce than before, 454—Wages no Smaller Proportion, 456—Indications of Increasing Distribution of Wealth, 457—2nd, Mr. George's Explanation, 461—Alleged Tendency of Wages to a Minimum that gives but a Bare Living, 462—The Wages Fund and Population Theories, 464—Mr. George's New Population Theory, 465—His New Wages Fund Theory, 468—His Explanation of the Distribution of Wealth without taking Profits into Account, 474—Views on Rent, 476—on Interest, 483—Wages, 484—Margin of Cultivation, 484—Absurdities of his Explanation, 485—3rd, Mr. George's Remedy, 487—Land Nationalization Movement in England, 488—Futility of Mr. George's Remedy, 489—Confiscation, 490—Difference of Mr. George's Proposal from Mr. Mill's, 491—Agricultural Land as truly the Fruit of Labour as other Commodities, 492—Real Distinction between Land and other Property, 494—Social Claim on all Property, 495—Is Private Property the best Guarantee for the most Productive use of Land? 496—Land Nationalization no
CHAPTER I. INTRODUCTORY.
It was a common topic of congratulation at the Exhibition of 1862 that the political atmosphere of Europe was then entirely free from the revolutionary alarms which overclouded the first Exhibition in 1851; but in that very year the old clouds began to gather once more at different quarters of the horizon. It was in 1862 that Lassalle delivered to a club of working men in Berlin his address on "The Present Epoch of the World, and the Idea of the Working Class," which was published shortly afterwards under the title of "The Working Man's Programme," and which has been called by his friends "The Wittenberg Theses" of the new socialist movement; and it was at the Exhibition itself that those relations were established between the delegates of English and French trade societies which issued eventually in the organization of the International. The double train thus laid has put in motion a propaganda of social revolution more vigorous, widespread, and dangerous than any which has preceded it.
But though the reappearance of socialism was not immediately looked for at the time, it could cause no serious surprise to any one who considered how nearly the socialist theory is allied with some of the ruling ideas of modern times, and how many points of attraction it presents at once to the impatient philanthropy of enthusiasts, to the passions of the multitude, and to the narrow but insistent logic of the numerous class of minds that make little account of the complexity of life. Socialism will probably never keep long away during the present transitional period of society, and there is therefore less interest in the mere fact of its reappearance than in marking the particular form in which, after a prolonged retirement, it has actually returned; for this may perhaps be reasonably taken to be its most vital and enduring type, and consequently that with which we shall mainly have to reckon in the future.
Now the present movement is, before all, political and revolutionary. The philanthropic and experimental forms of socialism, which played a conspicuous rôle before 1848, perished then in the wreck of the Revolution, and have never risen to life again. The old schools have dispersed. Their doctrines, their works, their very hopes have gone. The theories of man's entire dependence on circumstances, of the rehabilitation of the flesh, of the passional attraction, once in everybody's mouth, have sunk into oblivion. The communities of Owenites, St. Simonians, Fourierists, Icarians, which multiplied for a time on both sides of the Atlantic, are extinct. The socialists of the present day have discarded all belief in the possibility of effecting any social regeneration except by means of political authority, and the first object of their endeavours is therefore the conquest of the powers of the State. There are some exceptions, but these are very unimportant. The communistic societies of the United States, for instance, are mostly organizations of eccentric religious sects which have no part or influence in the life of the century. The Colinsian Collectivists, followers of the Belgian socialist Colins, are a mere handful; and the Familistère of Guise in France—a remarkable institution, founded since 1848 by an old disciple of Fourier, though not on Fourier's plan—stands quite alone, and has no imitators. Non-political socialism may accordingly be said to have practically disappeared.
Not only so, but out of the several sorts and varieties of political socialism, only one has revived in any strength, and that is the extremest and most revolutionary. It is the democratic communism of the Young Hegelians, and it scouts the very suggestion of State-help, and will content itself with nothing short of State-transformation. Schemes such as were popular and noisy thirty years ago—schemes, involving indeed organic changes, but organic changes of only a partial character—have gone to their rest. Louis Blanc, for example, was then a name of some power; but, remarkably enough, though Louis Blanc was but the other year buried with great honour, his Organization of Labour seems to be as completely forgotten as the Circulus of Leroux. M. G. de Molinari writes an interesting account of the debates that took place in the working men's clubs of Paris in the year 1868-9—the first year they were granted liberty of meeting after the establishment of the Second Empire—and he states that while Fourier and Cabet were still quoted by old disciples, though without any idea of their systems being of practical moment, Louis Blanc's name was not even mentioned. Proudhon's gospel of a State bank of mutual credit for furnishing labourers with capital, by issuing inconvertible notes without money and without price, has still a sprinkling of faithful believers, who call themselves Mutualists; but they are extremely few, and, as a rule, the socialists of France at the present day, like those of Germany, put their faith in iron rather than paper. What they want is a democracy of labour, to use one of their own phrases—that is, a State in which power and property shall be based on labour; where citizenship shall depend on a labour qualification, instead of a qualification of birth or of property; where there shall be no citizen who enjoys without labouring, and no citizen who labours without enjoying; where every one who is able to work shall have employment, and every one who has wrought shall retain the whole produce of his labour; and where accordingly, as the indispensable prerequisite of the whole scheme, the land of the country and all other instruments of production shall be made the joint property of the community, and the conduct of all industrial operations be placed under the direct administration of the State. Furthermore, all this is contended for as a matter of simple right and justice to the labouring classes, on the ground that the wealth of the nation belongs to the hands that made it; it is contended for as an obligation of the State, because the State is held to be merely the organized will of the people, and the people is the labouring class; and it is contended for as an object of immediate accomplishment—if possible, by ordinary constitutional means; but, if not, by revolution.
This is the form in which socialism has reappeared, and it may be described in three words as Revolutionary Socialist Democracy. The movement is divided into two main branches—socialism proper, or collectivism, as it is sometimes called, and anarchism. There are anarchists who are not socialists, but hold strongly by an individualist constitution of property. They are very few, however, and the great mass of the party known by that name in our day, including the Russian Nihilists, are as ardent believers in the economic socialism of Karl Marx as the Social Democrats of Germany themselves. They diverge from the latter on a question of future government; but the differences between the two are only such as the same movement might be expected to exhibit in passing through different media, personal or national. Modern democrats have been long divided into Centralists and Federalists—the one party seeking to give to the democratic republic they contemplate a strongly centralized form of government, and the other preferring to leave the local communes comparatively independent and sovereign, and free, if they choose, to unite themselves in convenient federations. The federal republic has always been the favourite ideal of the Democrats of Spain and of the Communards of Paris, and there
This is the only point of principle that separates anarchism from socialism. In other respects anarchism may be said to be but an extremer phase of socialism. It indulges in more violent methods, and in a more omnivorous spirit of destruction. Its fury takes a wider sweep; it attacks all current beliefs and all existing institutions; it puts its hopes in universal chaos. I shall endeavour in a future chapter to explain, from peculiarities of the national character and culture, why this gospel of chaos should find so much acceptance in Russia; but it is no exclusively Russian product. It was preached with singular coolness, as will be subsequently shown, by some of the young Hegelians of Germany before 1848, and it obtains among the more volatile members of most socialist organizations still. Attacks on religion, patriotism, the family, are very usual accessories of their practical agitations everywhere. As institutions and beliefs are seen to lend strength to each other, teeth set on edge against one are easily brought to gnash at all. A sharp check from the public authority generally brings out to the front this extremer element in German socialism. After the repressive legislation of 1878 the German socialists struck the restriction of proceeding "by legal methods" out of their programme, and the wilder spirits among them would be content with nothing short of a policy of general destruction, and, being expelled from the party, started an organization of their own on thoroughly anarchist lines.
Under these influences, the word socialism has come to contract a new meaning, and is now generally defined in a way that would exclude the very theories it was originally invented to denote. Its political element—its demand on the public power in behalf of the labouring class—is taken to be the pith and essence of the system. Mr. Cairnes, for example, says that the circumstance which distinguishes socialism from all other modes of social speculation is its invocation of the powers of the State, and he finds fault with Mr. Mill for describing himself in his "Autobiography" as a socialist, merely because his ideal of ultimate improvement had more in common with the ideal of socialistic reformers than with the views of those who in contradistinction would be called orthodox. The passage from the "Autobiography" runs as follows:—"While we repudiated with the greatest energy that tyranny of society over the individual which most socialistic systems are supposed to involve, we yet looked forward to a time when society will no longer be divided into the idle and the industrious; when the rule that they who do not work shall not eat will be applied, not to paupers only, but impartially to all; when the division of the produce of labour, instead of depending, as in so great a degree it now does, on the accident of birth, will be made by concert on an acknowledged principle of justice; and when it will no longer either be, or be thought to be, impossible for human beings to exert themselves strenuously in procuring benefits which are not to be exclusively their own, but to be shared with the society they belong to." ("Autobiography," pp. 231-232). On this passage Mr. Cairnes observes:—"If to look forward to such a state of things as an ideal to be striven for is socialism, I at once acknowledge myself a socialist; but it seems to me that the idea which 'socialism' conveys to most minds is not that of any particular form of society to be realized at a future time when the character of human beings and the conditions of human life are widely different from what they now are, but rather certain modes of action, more especially the employment of the powers of the State for the instant accomplishment of ideal schemes, which is the invariable attribute of all projects generally regarded as socialistic. So entirely is this the case that it is common to hear any proposal which is thought to involve an undue extension of the power of the State branded as socialistic, whatever be the object it may seek to accomplish. After all, the question is one of nomenclature merely; but people are so greatly governed by words that I cannot but regret that a philosophy of social life with which I so deeply sympathize should be prejudiced by verbal associations fitted, as it seems to me, only to mislead." ("Leading Principles of Political Economy," p. 316.)