The meetings held at Thomas Davidson's rooms at Chelsea in 1881-1883 furnished the initial impulse to the ethical Socialism in England of the last thirty years. As an immediate outcome of these meetings the Fabian Society sprang into being. In September, 1882, Thomas Davidson, recently returned from Italy, where he had been engaged in writing an interpretation of the ethical philosophy of Rosmini, gathered about him a group of people “interested in religious thought, ethical propaganda, and social reform.” Among their number were Messrs. Frank Podmore, Edward R. Pease, Havelock Ellis, Percival Chubb, Dr. Burns Gibson, H. H. Champion, the late William Clarke, Hubert Bland, the Rev. G. W. Allen and W. I. Jupp, Miss Caroline Hadden, Miss Dale Owen and Mrs. Hinton. According to Mr. Havelock Ellis, Davidson was convinced of “the absolute necessity of founding practical life on philosophical conceptions; of living a simple, strenuous, intellectual life, so far as possible communistically, and on a basis of natural religion. It was Rosminianism, one may say, carried a step further.” The many meetings at Mr. Pease's rooms in Osnaburgh Street and elsewhere finally bore fruit in a series of resolutions proposed by Dr. Burns Gibson.[45] Certain members of the circle, led by Mr. Podmore, who desired to have a society on more general lines, purposed organizing a second society, not necessarily exclusive of the “Fellowship,” on broader and more indeterminate lines, leaving it open to anyone to belong to both societies. At a meeting on January 4th, 1884, these proposals were substantially agreed to. The original name, “The Fellowship of the New Life,” was retained by those who originally devised it, and a new organization constituted under the title of “The Fabian Society.”[46]

The Fabian Society, as Shaw has told us in characteristic style, was “warlike in its origin; it came into existence through a schism in an earlier society for the peaceful regeneration of the race by the cultivation of perfection of individual character. Certain members of that circle, modestly feeling that the revolution would have to wait an unreasonably long time if postponed until they personally had attained perfection, set up the banner of Socialism militant, seceded from the regenerators, and established themselves independently as the Fabian Society.” Shaw was not one of the original Fabians; in fact, he knew nothing of the society until its first tract, Why are the Many Poor? fell into his hands. For some reason the name of the society struck him as an inspiration. His choice fell upon that society in which he could gratify his desire to work with a few educated and clever men of the type of Sidney Webb.

In the earliest stage of the society the Fabians were content with nothing less than the prompt “reconstruction of society in accordance with the highest moral possibilities.” Shaw joined the society on September 5th, 1884, when it was about eight months old, and in the labour-notes versus pass-books stage of evolution. Shaw actually debated with a Fabian who had elaborated a pass-book system, the question whether money should be permitted under Socialism, or whether labour-notes would not be a more suitable currency! The next two tracts, numbered 2 and 3, were from Shaw's pen; and although they were, as he now rightly regards them, mere literary boutades, they serve as an important link in the history of the evolution of the society.[47] Tract No. 4, What Socialism Is, answering the question both from the Collectivist and Anarchist point of view, reveals the early Anarchistic leanings of the society; the tract really contained nothing that had not already been better stated in the famous Communist Manifesto of Marx and Engels. Shaw was especially impressed by the fact that, in Das Kapital, Marx had made the most extensive use of the documents containing the true history of the leaps and bounds of England's prosperity, e.g., the Blue Books. This convinced him that a tract stuffed with facts and figures, with careful references to official sources, was what was wanted. Incapable of making such tracts unaided, Shaw at once bethought him of Sidney Webb. That “walking encyclopædia,” the student who knew everything and forgot nothing, could do it, Shaw was aware, as well as it could be done. So he brought all his powers of persuasion to bear on Sidney Webb. Picture to yourself the scene—two earnest, enthusiastic, revolutionary young men walking up and down Whitehall, outside the Colonial Office door, holding long and weighty discussions, often prolonged into the wee small hours, concerning the future of Socialism—the keen wit and agile logic of Shaw pitted against the sound judgment and sane conservatism of Webb. In this crucial juncture Shaw's proved the heavier artillery, and Webb became a Fabian. It would be difficult to lay one's finger upon any circumstance of deeper, more permanent, or more salutary effect upon Shaw's whole life. When Sidney Webb joined the Fabian Society there began a new and profoundly significant chapter in the history of Bernard Shaw. The debt Shaw owes to Webb is incalculable, and no one is readier to affirm it than Shaw himself. On various occasions I have heard Mr. Shaw unstintingly ascribe to Mr. Webb the greatest measure of credit for formulating and directing the policy of the Fabian Society for many years. “The truth of the matter,” Mr. Shaw once said to me, “is that Webb and I are very useful to each other. We are in perfect contrast, each supplying the deficiency in the other.” On the other hand, Mr. Webb assigns the chief credit to Mr. Shaw; and in a personal letter, as well as in conversation, he has assured me that Mr. Shaw has been not simply a leading member, but the leading member of the Fabian Society practically from its foundation, and that it has always expressed his political views and work. I think we may safely say that Mr. Shaw and Mr. Webb have been mutually complementary—and complimentary.

The immediate result of the acquisition of Webb, the new recruit of the Fabians, was Tract No. 5, Facts for Socialists, a tangible proof of Webb's richly-stored mind and well-nourished scholarship. A comparison of this tract with those numbered 2 and 3 is sufficient evidence of the vast practical improvement Webb effected in the publications of the society. From this time forth the tracts and manifestos of the Fabian Society took on character and importance through the fortunate conjunction of Webb's encyclopædic mind and Shaw's literary sense. The next publication of importance was Tract No. 7, Capital and Land, a survey of the distribution of property among the classes in England. Drafted by Sidney Olivier, this tract was aimed in reality at the Georgites, who regarded capital as sacred. It exhibits growth of independent thought on the part of the society, and courage in breaking away from the fetters of “mere Henry Georgism.”

Eight years later, that official organ of the Gladstonians, the Speaker, defined Fabianism as a “mixture of dreary, gassy doctrinairism and crack-brained farcicality, set off by a portentous omniscience and a flighty egotism not to be matched outside the walls of a lunatic asylum.” Such denunciatory invective reveals the activity and influence the Fabian Society must have exerted, during those years, in the direction most dreaded by the older Whigs. But many were the lessons learned, the hard knocks received, the follies rejected, before Fabianism was sufficiently dangerous and important to be honoured with the scathing denunciation of the Speaker. The Fabian wisdom grew out of the Fabian experience; scientific economics out of insurrectionary anarchism. Decidedly catastrophic in their views at first, the Fabians were not unlike the young Socialist Shaw somewhere describes, who plans the revolutionary programme as an affair of twenty-four lively hours, with Individualism in full swing on Monday morning, a tidal wave of the insurgent proletariat on Monday afternoon, and Socialism in complete working order on Tuesday. After Mrs. Wilson, subsequently one of the Freedom Group of Kropotkinist Anarchists, joined the Fabians, a sort of influenza of Anarchism spread through the society.[48] In regard to political insurrectionism, the Fabians exhibited no definite and explicit disagreement with the Social Democratic Federation, avowedly founded on recognition of the existence of a class war. All, Fabians and Social Democrats alike, said freely that “as gunpowder destroyed the feudal system, so the capitalist system could not long survive the invention of dynamite”! Not that they were dynamitards; but, as Shaw explains: “We thought that the statement about gunpowder and feudalism was historically true, and that it would do the capitalists good to remind them of it.” The saner spirits did not believe the revolution could be accomplished merely by singing the Marseillaise; but some of the youthful and insurgent enthusiasts “were so convinced that Socialism had only to be put clearly before the working classes to concentrate the power of their immense numbers into one irresistible organization, that the revolution was fixed for 1889—the anniversary of the French Revolution—at latest.” Shaw was certainly not one of the conservative forces; he was outspokenly catastrophic and alarmingly ignorant of the multifarious delicate adjustments consequent upon a widespread social cataclysm. “I remember being asked satirically and publicly at that time,” Shaw afterwards wrote, “how long it would take to get Socialism into working order if I had my way. I replied, with a spirited modesty, that a fortnight would be ample for the purpose. When I add that I was frequently complimented on being one of the more reasonable Socialists, you will be able to appreciate the fervour of our conviction and the extravagant levity of our practical ideas.”[49]

Broadly stated, the Fabians, in 1885, proceeded upon the assumption that their projects were immediately possible and realizable, an assumption theoretically as well as practically unsound. At the Industrial Remunerative Conference they denounced the capitalists as thieves; while among themselves they were vehemently debating the questions of revolution, anarchism, labour-notes versus pass-books, and other like futile and daring projects. The tacit assumption under which they worked, the purpose of their campaign with its watchwords: “Educate, Agitate, Organize,” was “to bring about a tremendous smash-up of existing society, to be succeeded by complete Socialism.” This romantic, almost childlike faith in the early consummation of that far-off divine event, towards which the whole of Socialist creation moves, meant nothing more nor less, as Shaw freely admits, than that they had no true practical understanding either of existing society or Socialism. But the tone of the society was changing, gradually and almost imperceptibly, from that of insurrectionary futility to economic practicality. Their tracts and manifestos voiced, less and less frequently, forcible-feeble expressions of altruistic concern and humanitarian indignation. The practical bases of Socialism, the Fabians began to realize, were in sore need of being laid. And there can be no doubt that the frank levity and irreverent outspokenness, which are the distinguishing traits of Shaw, the artist, were given the fullest field for development in the early days of Fabian controversy, when no rein was put on tongue or imagination. It was at this period, Shaw has told us, that the Fabians contracted the invaluable habit of freely laughing at themselves—a habit which has always distinguished them, always saved them from being dampened by the gushing enthusiasts who mistake their own emotions for public movements. As Shaw once expressed it:

“From the first such people fled after one glance at us, declaring that we were not serious. Our preferences for practical suggestions and criticisms, and our impatience of all general expressions of sympathy with working-class aspirations, not to mention our way of chaffing our opponents in preference to denouncing them as enemies of the human race, repelled from us some warm-hearted and eloquent Socialists, to whom it seemed callous and cynical to be even commonly self-possessed in the presence of the sufferings upon which Socialists make war. But there was far too much equality and personal intimacy among the Fabians to allow of any member presuming to get up and preach at the rest in the fashion which the working-class still tolerate submissively from their leaders. We knew that a certain sort of oratory was useful for 'stoking up' public meetings; but we needed no stoking up, and when any orator tried the process on us, soon made him understand that he was wasting his time and ours. I, for one, should be very sorry to lower the intellectual standard of the Fabian by making the atmosphere of its public discussions the least bit more congenial to stale declamation than it is at present. If our debates are to be kept wholesome, they cannot be too irreverent or too critical. And the irreverence, which has become traditional with us, comes down from those early days when we often talked such nonsense that we could not help laughing at ourselves.”[50]

No perceptible difference in the various Socialist societies in England was apparent until the election of 1885. When the Social Democratic Federation and that high priest of Marxism, the eloquent H. M. Hyndman, first appeared in the field, they “loomed hideously in the guilty eye of property.” Whilst the Fabians numbered only forty, the Federation in numbers and influence was magnified out of all proportion by the imagination of the public and the political parties. The Tories actually believed that the Socialists could take enough votes from the Liberals to make it worth their while to pay the expenses of two Socialist candidates in London.[51] The Social Democrats committed a huge tactical blunder in accepting Tory gold to pay the expenses of these elections, to say nothing of making the damaging exposure that, as far as voting power was concerned, the Socialists might be regarded as an absolutely negligible quantity. A more serious result of the “Tory money job” to the Federation was the defection of many of its adherents. The Socialist League, in the language of American National Conventions, viewed with indignation and repudiated with scorn the tactics of “that disreputable gang,” the S. D. F., as it was currently designated; while the Fabians, more parliamentary in tone, passed the following resolution: “That the conduct of the Council of the Social Democratic Federation in accepting money from the Tory party in payment of the election expenses of Socialist candidates is calculated to disgrace the Socialist movement in England.” Certain members of the Federation, under the leadership of C. L. Fitzgerald and J. Macdonald, seceded from it, and in February, 1886, formed a new body called “The Socialist Union,” which eked out a precarious existence for barely two years. Far from being reinforced by the secessionists, the Fabians were, on the contrary, only the more inevitably forced to formulate their own principles, to mature their own individual policy. From this time forward, they were classed by the Federation as a hostile body. And, as Shaw says, “We ourselves knew that we should have to find a way for ourselves without looking to the other bodies for a trustworthy lead.”

During the years 1886 and 1887, which mark the high tide and recession of Insurrectionism in recent English Socialist history, the sane tacticians, the Fabians, took little or no hand in the revolutionary projects for the relief of the unemployed. The budding economists were not wedded to street-corner agitations; nor was their help wanted by the men who were organizing church parades and the like. These were years of great distress among the labouring classes, not only in England, but in Holland, in Belgium, and especially in the United States. “These were the days when Mr. Champion told a meeting in London Fields that if the whole propertied class had but one throat he would cut it without a second thought if by doing so he could redress the injustices of our social system; and when Mr. Hyndman was expelled from his club for declaring on the Thames Embankment that there would be some attention paid to cases of starvation if a rich man were immolated on every pauper's tomb.” After the 8th of February, 1886, that mad Monday of window-breaking, shop-looting, and carriage-storming memory, Hyndman, Champion, Burns, and Williams were arrested and tried for inspiring the agitation, but were acquitted. “The agitation went on more violently than ever afterwards; and the restless activity of Champion, seconded by Burns' formidable oratory, seized on every public opportunity, from the Lord Mayor's Show to services for the poor in Westminster Abbey or St. Paul's, to parade the unemployed and force their claims upon the attention of the public.” Champion gave up in disgust when, impatient of doing nothing but marching hungry men about the streets and making speeches to them, he encountered only refusal of his two proposals to the Federation: either to empower him to negotiate some scheme of relief with his aristocratic sympathizers, or else go to Trafalgar Square and stay there until something should happen. Matters reached a crisis when the police, alarmed by the occasional proposals of incendiary agitation to set London on fire simultaneously at the Bank, St. Paul's, the House of Commons, the Stock Exchange, and the Tower, cleared the unemployed out of the Square. But the agitation for right of meeting grew universal among the working-classes; and finally Mr. Stead, with the whole working-class organization at his back, gave the word “To the Square!”[52] To the Square they all went, therefore, Shaw tells us, with drums beating and banners waving, in their tens of thousands, nominally to protest against the Irish policy of the Government, but really to maintain the right of meeting in the Square. With the new Chief Commissioner of Police, however, it was, as one of Bunyan's Pilgrims put it, but a word and a blow. “That eventful 13th of November, 1887, has since been known as 'Bloody Sunday.' The heroes of it were Burns and Cunninghame Graham, who charged, two strong, at the rampart of policemen round the Square and were overpowered and arrested. The heroine was Mrs. Besant, who may be said without the slightest exaggeration to have all but killed herself with overwork in looking after the prisoners, and organizing in their behalf a 'Law and Liberty League' with Mr. Stead. Meanwhile, the police received the blessing of Mr. Gladstone; and Insurrectionism, after a two years' innings, vanished from the field and has not since been heard of. For, in the middle of the revengeful growling over the defeat at the Square, trade revived; the unemployed were absorbed; the Star newspaper appeared to let in light and let off steam; in short, the way was clear at last for Fabianism. Do not forget, though, that Insurrectionism will reappear at the next depression in trade as surely as the sun will rise to-morrow morning.”[53]

Being “disgracefully backward” in open-air speaking, the Fabians had been somewhat overlooked in the excitements of the unemployed agitations. They had only Shaw, Wallas and Mrs. Besant as against Burns, Hyndman, Andrew Hall, Tom Mann, Champion and Burrows, of the Federation, and numerous representative open-air speakers of the Socialist League. The sole contribution of the Fabians to the agitation was a report, printed in 1886, recommending experiments in tobacco culture, and even hinting at compulsory military service as a means of absorbing some of the unskilled unemployed. Drawn up by Bland, Hughes, Podmore, Stapleton and Webb, this was the first Fabian publication that contained any solid information. In June, 1886, the temper of the society over the social question having cooled to some extent, the Fabians “signalized their repudiation of Sectarianism” by inviting the Radicals, the Secularists, and anyone else who would come, to a great conference, modelled upon the Industrial Remunerative Conference, and dealing with the Nationalization of Land and Capital. Fifty-three societies sent delegates, and eighteen papers were read during the three afternoons and evenings the conference lasted. Among those who read papers were two Members of Parliament, William Morris and Dr. Aveling, of the Socialist League, Mr. Foote and Mr. Robertson, of the National Secular Society. Wordsworth Donisthorpe, Stuart Headlam, Dr. Pankhurst, Mrs. Besant, Edward Carpenter and Stuart-Glennie represented various other shades of Socialist doctrine and belief. The main result of the conference was to make the Fabians known to the Radical clubs and to prove that they were able to manage a conference in a business-like way.