In Shaw's opinion, the social struggle does not follow class lines at all, because the people who really hate the capitalist system are, like Ruskin, Morris, Tolstoy, Hyndman, Marx and Lassalle, themselves capitalists, whereas the fiercest defenders of it are the masses of labourers, artisans, and employees whose trade is at its best when the rich have most money to spend. Socialists like Shaw, who “do not accept the class war,” are simply expressing “first, a very natural impatience of crying 'War, War!' where there is no war; and, second, their despair at seeing Socialism, like Liberalism, perishing because it is trying to live on the crop of home-made generalizations so plentifully put forth during the great Liberal boom of 1832-80 by middle-class paper theorists like Malthus, Cobden, Marx, Comte and Herbert Spencer—fine fellows, all of them, but stupendously ignorant of the industrial world.” The basic divergence between the Fabian and the “S. D. F.” policy is epitomized in Shaw's words: “There is a conflict of interests between those who pay wages and those who receive them; and this is organized by the trade unions. There is another conflict of interests between those workers and proprietors whose customers live on rent (in its widest economic sense), and those whose customers live on wages; but the lines of this conflict run, not between the classes, but right through them, and do not coincide with the lines of the trade union conflict. And any form of Socialist organization, or any tactics toward the trade union movement, based on the theory that the lines of battle do run between the classes and not through them, or do coincide with the trade union lines of battle, will prove, and always has proved, disastrously impracticable.” Shaw exasperatingly said in a recent article[78] that he refused to agree with anybody on any subject whatsoever. “Let them agree with me if my arguments convince them. If not, let them plank down their own views. I will not have my mouth stopped and my mind stifled.” And those mystic forces—historical development and Progress with a large P—in which the Marxists rest their firmest hope, Shaw regards in the spirit of Ingoldsby's sacristan:

“The sacristan he said no word to indicate a doubt;
But he put his thumb unto his nose, and he spread his fingers out.”

There are two factors which strongly militate against the progress of Socialism; the resolute adherence of Socialists to those theories and policies of Marx which time, experience, and modern economic science have combined to discredit; and the tendency of the popular mind to confuse Socialism with Anarchism.[79] Shaw's most important negative and destructive achievements consist in those amazingly clever and interesting papers in which he attempts to expose Marx's theory of value as an exploded fallacy, to show that the Class War will never come, and to demonstrate the impossibilities of Anarchism. In the technical sense of Socialist economics, Shaw occupies the opposite pole to Individualism and Anarchism. And yet in a very definite and general sense, Shaw is a thorough-paced individualist and anarchist. If individualist means a believer in the Shakespearean injunction “To thine own self be true!”, in the Ibsenic doctrine “Live thine own life!”, then Shaw is an individualist heart and soul. If anarchist means an enemy of convention, of tradition, of current modes of administering justice, of prevailing moral standards, then Shaw is the most revolutionary anarchist now at large. If, on the other hand, Individualist means one who distrusts State action and is jealous of the prerogative of the individual, proposing to restrict the one and to extend the other as far as is humanly possible, then Shaw is most certainly not an Individualist. If Anarchist means dynamitard, incendiary, assassin, thief; champion of the absolute liberty of the individual and the removal of all governmental restraint; or even a believer, as Communist, in a profound and universal sense of high moral responsibility present in all humanity, then Shaw is a living contradiction of Anarchism.

Shaw opposes Individualist Anarchism since, under such a social arrangement, the prime economic goal of Socialism: the just distribution of the premiums given to certain portions of the general product by the action of demand, would never be attained. As this system not only fails to distribute these premiums justly, but deliberately permits their private appropriation, Individualist Anarchism is, in Shaw's view, “the negation of Socialism, and is, in fact, Unsocialism carried as near to its logical completeness as any sane man dare carry it.” The Communist Anarchism of Kropotkin, Shaw also opposes because of his own lack of faith in humanity at large, in the present state of development of the social conscience. If bread were communized, the common bread store obviously would become bankrupt unless every consumer of the bread contributed to its support as much labour as the bread he consumed cost to produce. Were the consumer to refuse thus to contribute, there would be two ways to compel him: physical force and the moral force of public opinion. If physical force is resorted to, then the Anarchist ideal remains unattained. If moral force, what will be the event? The answer reveals Shaw as a confirmed sceptic in regard to the value of public opinion as a moral agent. “It is useless,” he avers, “to think of man as a fallen angel. If the fallacies of absolute morality are to be admitted into the discussion at all, he must be considered rather as an obstinate and selfish devil who is being slowly forced by the iron tyranny of Nature to recognize that in disregarding his neighbours' happiness, he is taking the surest way to sacrifice his own.” Under Anarchistic Communism, public opinion would no doubt operate as powerfully as now. But, in Shaw's opinion, public opinion cannot for a moment be relied upon as a force which operates uniformly as a compulsion upon men to act morally. Keen, incisive, pitiless, his words descriptive of public opinion show how little he is tinged with the poetry, the passion, and the religion which are the very life blood of Socialism.

“Its operation is for all practical purposes quite arbitrary, and is as often immoral as moral. It is just as hostile to the reformer as to the criminal. It hangs Anarchists and worships Nitrate Kings. It insists on a man wearing a tall hat and going to church, on his marrying the woman he lives with, and on his pretending to believe whatever the rest pretend to believe.... But there is no sincere public opinion that a man should work for his daily bread if he can get it for nothing. Indeed, it is just the other way; public opinion has been educated to regard the performance of daily manual labour as the lot of the despised classes. The common aspiration is to acquire property and leave off working. Even members of the professions rank below the independent gentry, so-called because they are independent of their own labour. These prejudices are not confined to the middle and upper classes: they are rampant also among the workers.... One is almost tempted in this country to declare that the poorer the man the greater the snob, until you get down to those who are so oppressed that they have not enough self-respect even for snobbery, and thus are able to pluck out of the heart of their misery a certain irresponsibility which it would be a mockery to describe as genuine frankness and freedom. The moment you rise into the higher atmosphere of a pound a week, you find that envy, ostentation, tedious and insincere ceremony, love of petty titles, precedence and dignities, and all the detestable fruits of inequality of condition, flourish as rankly among those who lose as among those who gain by it. In fact, the notion that poverty favours virtue was clearly invented to persuade the poor that what they lost in this world they would gain in the next.”[80]

When Shaw attended the International Socialist Congresses in Zurich and in London, he reported them in the Star as unsparingly as he would have reported a sitting of Parliament. The Socialists, amazed and indignant at their first taste of real criticism, concluded that Shaw was going over to the enemy. This Fabian policy of unsparing criticism, inaugurated and carried out ruthlessly by Shaw, ended in freeing the Fabians, in great measure, from the illusions of Socialism, and in imparting to their Society its rigidly constitutional character. An incident, which Mr. Shaw once described in a letter to me, gives one some insight into the causes of his reaction against the German Socialists' policy of playing to the galleries by spouting revolutionary rant and hinting catastrophically of impending revolutions.

“At the Zurich Congress I first became acquainted with the leaders of the movement on the Continent. Chief among them was the German leader Liebknecht, a '48 veteran who, having become completely parliamentarized, still thought it necessary to dupe his younger followers with the rhetoric of the barricade. After a division in which an attempt to secure unanimity by the primitive method of presenting the resolution before the Congress to the delegates of the different nations in their various languages in several versions adapted to their views, so that whilst they believed they were all saying 'Yes' to the same proposition, the wording was really very different in the different translations, and sometimes highly contradictory, it turned out that the stupidity of the English section had baffled the cleverness of the German-Swiss bureau, because the English voted 'No' when they meant 'Yes,' and upset the apple-cart. Happening to be close to Liebknecht on the platform at the luncheon adjournment, I said a few words to him in explanation of the apparently senseless action of the English. He looked wearily round at me; saw a comparatively young Socialist whom he did not know; and immediately treated me to a long assurance that the German Social Democrats did not shrink from a conflict with the police on Labour Day (the 1st of May); that they were as ready as ever, etc., etc., etc., etc., etc. I turned away as soon and as shortly as I could without being rude; and from that time I discounted the German leaders as being forty years out of date, and totally negligible except as very ordinary republican Radicals with a Socialist formula which was simply a convenient excuse for doing nothing new.

“When the German leaders visited London in the eighties they treated the Fabian Society as a foolish joke. Later on they found their error; and Liebknecht was entertained at a great Fabian meeting; but to this day the German Socialist press does not dare to publish the very articles it asks me to write, because of my ruthless criticism of Bebel, Singer, and the old tradition of the 'old gang' generally. My heresy as to Marx is, of course, another horror to the Germans who got their ideas of political economy in the '48-'71 period.”

After 1875, let us recall, the old pressure and discontent of the eighteen-thirties descended upon England with renewed force. In 1881, “as if Chartism and Fergus O'Connor had risen from the dead,” the Democratic Federation, with H. M. Hyndman at its head, inaugurated the revival of Socialist organization in England. Like those other haters of the capitalist system—the capitalists Ruskin, Morris, Tolstoy, Marx and Lassalle—Hyndman “had had his turn at the tall hat and was tired of it.” Shortly after the formation of the Democratic Federation, the Fabian Society, a revolting sect from the Fellowship of the New Life, founded by Professor Thomas Davidson, came into being. Hyndman and his Marxists, Kropotkin and his Anarchists, did not realize, with Shaw, that the proletariat, instead of being the revolutionary, is in reality the conservative element of society. They refused to accept this situation, not realizing that they were confronted by a condition, not a theory. “They persisted in believing that the proletariat was an irresistible mass of Felix Pyats and Ouidas.” On the point of joining the Democratic Federation, Shaw decided to join the Fabian Society instead. He did accept the situation, helped, perhaps, as he once said, by his inherited instinct for anti-climax. “I threw Hyndman over, and got to work with Sidney Webb and the rest to place Socialism on a respectable bourgeois footing; hence Fabianism. Burns did the same thing in Battersea by organizing the working classes there on a genuine self-respecting working-class basis, instead of on the old romantic middle-class assumptions. Hyndman wasted years in vain denunciation of the Fabian Society and of Burns; and though facts became too strong for him at last, he is still at heart the revolted bourgeois.” Prior to the year 1886, there had been no formal crystallization of the Fabian Society into a strictly economic association, avowedly opportunist in its political policy; after September 17th of that year the thin edge of the wedge went in. The Manifesto of the Fabian Parliamentary League contains the nucleus of the Fabian policy of to-day.[81] The Fabian Society was a dead letter until Shaw, Webb, Olivier and Wallas joined it; from that moment, it became a force to be reckoned with in English life. Almost from the very first, as Mr. Sidney Webb once wrote me, the Society took the colour of Shaw's mordantly critical temperament, and bore the stamp of his personality. The promise of the Fabians lay in their open-mindedness, their diligence in the study of advanced economics, and their resolute refusal of adherence to any formula, however dear to Socialist enthusiasts, which did not commend itself unreservedly to their intelligence. By 1885, it had only forty members; and in 1886, it was still unable to bring its roll of members to a hundred names. In 1900, it boasted a membership of eight hundred, and at present about twenty-six hundred names are found upon its rolls.[82] It is neither possible nor advisable for me to record the history of the Fabian Society—that may be found in the numerous publications of the Society. But I cannot refrain from stating that the membership increased by forty-three per cent, in the year 1906-7, that this was a year of unprecedented activity; and that the Society has recently been greatly strengthened by the accession of many well-known men in English public life. There were then eight Fabians in the London County Council; and in Parliament, Labour and Socialism have in the last five years been better represented, I believe, than ever before in the history of that body. I have recently talked at length with many of the ablest Socialists in England. The remarkable growth of the Fabian Society and the Socialist representation in English literature, I was told again and again, is not due to any sudden and untrustworthy inflation of Socialist values, but is largely due to the fact that Bernard Shaw, Sidney Webb, Hubert Bland, and their coterie have been planting the seeds for twenty years. Such ideas as are embodied in Mr. Lloyd George's budget and the Old Age Pension Bill are unmistakable marks of that gradual Socialist leavening of English political thought upon which the Fabians have been engaged ever since 1884. “The recent steady influx into the Fabian Society,” Mr. Bland said to me energetically, “is a clear proof to my mind that the ideas which have been lurking in the air for a long, long time are at last taking definite shape simultaneously in the minds of a great many people. Such men as Bernard Shaw have brought this thing to pass.”[83]

During the years from 1887 to 1889, the years we are especially concerned with at present, compensation for its paucity of numbers was found not only in the intellectual capacity, but also in the economic inquisitiveness and acquisitiveness of the leaders in the Fabian Society. This is best revealed in Shaw's sketch of this period: